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Before you use any instant loan application, you must be well-informed about potential scams and financial risks. Let’s take a look at key things to know.
Remember to check if the app is regulated by the Reserve Bank of India or not. Check reviews and licenses before taking an instant loan.
Always make sure to read the terms and conditions before you apply for any loan. Read all the important terms: processing fees, penalties and more.
Many instant loan apps charge a hefty interest rate, even over 50% sometimes. Compare with traditional loans and avoid overpaying until in emergency situations.
Check the repayment terms carefully—many instant loans are short-term. Before taking any loan, ensure you have the means to repay on time to avoid huge penalties.
Many instant loan apps often ask for access to contacts, locations, etc. Only allow necessary accesses for loan processing and try to avoid apps that require too much information.
There are many loan scams in the market. Many offer loans without any official paperwork or demand deposits. Remember to verify authenticity before taking any loan.
Defaulting on a loan can impact your credit score negatively. If you can’t repay your loan in the specified time, avoid taking it and look for alternatives.
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