How to protect yourself from falling into instant loan apps trap? 6 Tips

A resident of Navi Mumbai lost ₹90,000 in an online loan scam after applying for a loan through a Facebook post.

Updated on: Nov 14, 2023, 13:53:52 IST

By HT News Desk

Prefer HTon Google

Share via

Copy link

A 56-year-old resident of Navi Mumbai fell victim to online fraud, losing ₹90,000 in an alleged instant loan scam.

An FIR under section 420 of the Indian Penal Code and the Information Technology Act was filed against unidentified individuals at Kalamboli police station on Saturday, PTI reported.

The complainant, employed with a logistics company, sought a loan for his daughter's education after seeing a Facebook post promising loans within two hours. Upon applying online, he received a call demanding insurance, GST, NOC, Reserve Bank of India charges, and two advance instalments, totaling ₹90,000.

Realising he had been deceived when the promised loan didn't materialise, the complainant reported the incident, and an investigation is ongoing.

Why instant loan apps are risky?

Beware of unauthorised digital lending platforms and mobile apps that promise quick, hassle-free loans. Reports indicate these platforms may charge excessive interest rates, demand hidden fees, use aggressive recovery methods and misuse agreements to access borrower data including breaching your online privacy.

It's crucial to take precautions and avoid falling victim to such schemes.

What measures you must take against instant loan trap?

• Only trust loans from banks, RBI-registered non-banking financial companies, and state-regulated entities

• Verify backgrounds of entities providing tempting loans on digital platforms.

• Ensure thorough checks on the credibility of online or app-based loan providers.

• Never share KYC documents with unidentified or unverified individuals or apps.

• Report fraudulent activities to law enforcement agencies or RBI’s Sachet portal (https://sachet.rbi.org.in).

• RBI mandates digital lending platforms to disclose upfront the name of the bank(s) or NBFC(s) they represent.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Loan

Home/Technology/How To Protect Yourself From Falling Into Instant Loan Apps Trap? 6 Tips