Nowadays, digital loan is the easy way to fulfill your instant loan requirement. If you need for urgent loan, you may apply through a website or app. This saves time & disburse loan faster. With several benefits, everyone trying to digital loan application platforms.
But it would help if you kept in mind some factors before applying for a digital loan. Actually, a Digital loan belongs to a personal loan. So, you should understand the proper method. We will explore 6 factors to know before choosing a digital loan.
The 6 Factors to Know Before Choosing a Digital Loan
1. Data Privacy
24hr Loan experience lots of credit score mismatch. That means the applicant doesn’t know about the loan that is already showing on the CIBIL report. So, the actual meaning is customer data (Aadhaar Card & Pan Card) is used by others.
When you obtain for digital loan, your data privacy is the essential factor. Don’t upload documents to an unknown application. Google removed 3500 personal loan applications. Because they are not maintaining proper guidelines. You should be aware of data privacy. Always check website is secure or not.
2. Eligibility Check
Most people don’t check eligibility before a loan application. Different lenders come with different eligibility criteria. You should know the eligibility criteria. If you don’t know the eligibility details, you will get rejected & your credit score will be impacted by unnecessary queries.
We get many applicants with 6 to 7 queries on CIBIL within 3 months. These queries will impact on your credit score. If you understand the criteria properly, it will help you a lot.
3. Check Review & Rating
As a borrower, you should check the platform review & rating on the Play Store. Don’t push the install button without knowing the application properly. Read the customer reviews & ratings one by one. This will give you a clear image of the application.
Also, download the RBI registered application. If the application is not RBI registered, you should skip this. Whether the application is new or has few downloads, avoid this kind of app.
4. Trustworthiness of Lender
One of my friends lost Rs. 2,500 from the online application. This application takes processing charge before the loan. After some days, he realized the app was totally fraudulent and he cheated of Rs. 2,500.
Various lenders provide digital loans nowadays. Before applying for a loan, always check the credibility of the lender. Know the lender’s background, customer review & rating. It will save you from falling under the wrong hand.
5. Interest & Other Charges
Interest rates and other charges will vary on lenders. Different lenders take different interest and charges. Try to compare interest rates with other lenders. Some lenders also charge additional fees such as late charges.
Before loan credit, having complete knowledge will be helpful for you. Beware of hidden charges of lenders and if you have any queries, ask the customer support team immediately.
6. Alternate Option
Before taking the digital loan, explore the alternate option. Another lender or financial company can give you competitive interest. So, try to open another door that way you can easily come out.
Other lenders such as peer-to-peer lenders or traditional bans give you better rates. This way you may reduce monthly EMI.
Defiantly, digital loans may solve financial needs quickly. But remember some factors before opting for a digital loan. Examining review and rating, credibility, interest rate, eligibility, and terms & conditions gives you a well-informed decision.
Remember, you are the one who can save himself. So, keep in mind every factor that will be helpful for your life and you can make financial decisions without depending on others.