Applying For A Loan Online? Don't Let Scammers Steal Your Identity

By Author: Jaymin
Total Articles: 3
Comment this article

A quick loan offer can look tempting when you need money urgently. But before downloading an unfamiliar app or sharing your documents, take a moment to check whether the lender is genuine.

Fake loan apps can collect personal information, demand advance payments and sometimes use private photographs to threaten borrowers.

Here's what to look out for.

Watch out for these warning signs

They ask for money upfront. If someone claims your loan is approved but demands a fee to release the money, verify the charge directly with the regulated lender before paying.

They won't identify the lender. A genuine digital lending arrangement should clearly disclose the bank or NBFC responsible for providing the loan.

They want access to everything on your phone. Be cautious about unnecessary access to your contacts, messages, photographs and other personal information.

They promise guaranteed approval. No app's marketing message should replace a proper review of its credentials and loan terms.

They threaten or pressure you. Requests for OTPs, banking passwords or additional payments under ...
... pressure are serious warning signs.

Five simple ways to protect yourself

Verify the lender through official sources before applying.

Download apps from trusted stores and check the developer.

Read the privacy policy and loan agreement.

Never share banking passwords, PINs or OTPs with agents.

Check your bank transactions and credit report regularly.

Already shared your documents?

Don't panic, but don't ignore it either.

Remove suspicious apps and review their permissions. Contact your bank if your financial credentials may be at risk. Keep screenshots and messages, and watch for unfamiliar credit enquiries or accounts.

If you experience financial cyber fraud in India, call 1930 promptly or report it through cybercrime.gov.in.

Borrow safely

Explore the loan services offered through PSB Loans in 59 Minutes, and read the full guide on protecting your identity from morphing loan scams.

Your personal information matters. Take a few minutes to verify before you apply.