Important Key Points to Keep in Mind While Borrowing from Digital Apps

Applying for a loan through digital apps, check these important things that should be kept in mind while borrowing from digital apps. In digital India, everything is now on a click. Borrowing or getting loans is also very easy and convenient nowadays. A famous and fastest- means of getting loans is digital lending. These loans are granted easily through digital lending apps. Here are some things to keep in mind before borrowing from digital apps

Things to keep in mind before borrowing loan from digital app-

• The first thing to keep in mind is to check the charges such as interest rate or cost of borrowing, application charges, processing charges, late payment fees etc . For this you need to read the key fact statement very carefully. Digital lenders such as Banks and NBFCs issue a key fact statement to borrowers before sanctioning a loan.
• Details such as loan amount, insurance charges, tenure, repayment frequency, instalments and other details such as cooling-off period, loan recovery tools, grievance redressal officer are also mentioned in the key fact statement
• The borrowers should send the key fact statement as the loan is sanctioned to the borrower's registered e-mail or SMS and the lender must send the borrower an email or SMS to recognise payments made or EMIs paid.
• After the loan is approved, some time is given to the borrower to repay the loan with interest without any penalty. Banks and NBFCs are allowed to set their own cooling-off period which should be 1 day at least.
• when choosing any lending app compare the interest rates, terms, tenure and repayment options. Choose the best option for yourself.
• There is an increase in the number of online fraud, always be careful about non verified or unofficial sources related to your personal information such as address, PIN, bank details and account number. Always verify the source before borrowing.
• No third party should be permitted in the loan payment process. The loan should be paid directly into the bank account of the borrower. For example, A digital app offers a loan through a bank, then the loan will be paid directly through the bank, not via any app.

As loans help in our financial crises, loans are required. Before borrowing from any digital app, always keep in mind these important things to get the safest deal.