Instant personal loan: Is it safe to share your documents online? Find out

Instant loan apps have made the process of taking a loan quick and hassle-free, suiting your financial needs. The platform has transformed the lending scenario, where borrowers can get loans with a few taps on their phones. Due to instant loan apps, you do not have to go through endless paperwork and complicated loan processes. Instead of physically carrying your loan documents to a bank branch, you easily upload them to the app to apply for a loan.

However, the rising number of cybercrimes in India has raised the question of whether it is safe to share your personal loan documents online.

Is it safe to share information online?

Sharing personal information online may seem daunting for many. However, if you apply for a loan correctly through a Reserve Bank of India (RBI) registered app, the chances of losing your personal information are very unlikely. Additionally, the app must have a stringent data protection policy to ensure your information is safe online.

How to share information on an instant loan app?

One of the most critical factors in uploading personal information online is the method of sharing the data. Always check that the lending platform is encrypted, especially when you are uploading the documents. Use a secure email address and zip files or password-protected PDFs to share your information. This way, providing your personal details to an instant loan app will become relatively safe and secure.

Risks of sharing personal information online

1. Unregulated entities: Several apps offer attractive benefits to attract borrowers. Before being lured by such offers, borrowers must check if the instant loan app is regulated by the RBI. These lenders may not be bound by standardised practices or guidelines, leaving borrowers vulnerable to unfair terms and practices.
2. Privacy concerns: There is a risk of data breach if the online platform does not have enough security measures to protect your data. Instant loan apps collect information such as ID proof, bank account details, and other personal information. Apps with unclear privacy policies may share your information with third parties without consent.
3. Risk of fraud: Instant loan apps ask for personal details that could be accessed by fraudsters who could misuse them for unauthorized transactions. Some apps themselves might be scams that steal your personal information.

Some tips to protect your personal information

• Do not share your one-time password or OTP with anyone.
• Have strong passwords for your internet connection and loan apps. Change your password often to protect sensitive information.
• Make sure to check the lender details and the authenticity of the app before logging in to any online lending platform.
• Ensure to download well-reputed instant loan apps which have trusted reviews online. Unusual instant loan apps may potentially be a scam.

In conclusion, instant loan apps are the latest addition to the lending space that provides convenience to borrowers who require urgent funds. However, due caution is required before opting for an instant loan app to cater for your financial requirements.

(Note: Raising a loan comes with its own risks. So, due caution is advised)