Applying for a loan via a digital lending app? 6 key things to remember

Raising a tiny amount of loan via a mobile application is nothing short of overly convenient, but is sadly riddled with a set of risks. A recently-released statement released by the Finance Ministry stated that the “predatory recovery practices involving blackmailing, criminal intimidation, etc.” by these illegal loan app providers were a concern. Stay away from instant disbursals: Experts also tell consumers to keep those lending apps at bay that promise "instant" disbursal without even bothering to check your ability to repay. In fact, the latest guidelines released by the banking regulator strictly prevent apps from accessing the personal details via mobile phone device. And regardless of what the sceptics say, industry leaders take comfort in RBI's recently released guidelines for digital lending, and also the upcoming whitelist on lending apps.