The demand for quick loans in India is at an all-time high in this decade. In regard to this, many companies like Bajaj Finance have introduced apps to provide quick loan services. While the benefits and precautions before using these apps are often discussed, the discussion of concerns lurking in hindsight is often ignored. 

Borrowers are often advised to thoroughly research the security, reputation, and terms of the platform before requesting a loan, but the vigilance should not stop there. Even if a platform is safe to use, some unauthorized individuals with access to your contact details can use your financial vulnerability for their profit. They may claim to represent the app you’ve borrowed a loan from :

1. Contact you or send payment reminders through personal numbers.

Legitimate apps will use their registered landline number instead of a 10-digit personal number if they want to reach out to you. The official number will always be mentioned on their website, and they will have a verified badge if they are using an app like WhatsApp.

2. Ask you to make payments to personal bank accounts.

Legitimate loan apps would have their payment portal built within the app that you can use to pay the EMIs. On the other hand, malicious individuals would urge you to use scan and pay payment methods, or UPI, to make transfers to their personal accounts using a portal other than the one available on the loan app. 

3. Ask for commission on dues.

Loans may have other fees, but that’s always disclosed in the fine print while signing a loan agreement. If any representative contacts you to demand additional commission, their demand is most likely illegitimate. 

4. Call your friends or relatives.

Some loan apps require access to contact details and personal information. However, the legitimate ones would never contact your relatives or friends to demand payment. Fraudsters may claim to your contacts that you’ve nominated them as cosigners, and they must pay the remaining dues.

5. Omit recording calls and conversations.

Any app that’s lending easy loans would almost always record conversations if they ever contact you. This is done for your and their institution’s safety. Individuals with malicious intentions would deliberately omit this so as not to leave any trails of their deceptive claims. 

How to slice through these malicious attempts:

  • Always crosscheck the number that has been used to contact you with the official number listed on the website or app. Never hesitate to inquire further from actual representatives about the number.
  • You should never use a payment portal other than the one officially mentioned by the app, and you should never make payments to personal accounts. 
  • Some individuals may be contacted to opt in for a reward or cashback on loans program for an additional fee. Never fall for such offers unless the app explicitly announces this scheme in its documents. 
  • Report to legal officials if any individual contacts you or your relatives and uses abusive language or makes deceptive statements.
  • Always inform the lending platform about the situation so that they can take measures to increase the security of their platform.

Considering how spontaneously financial crises can arise at some point in life, it’s not unusual for people to feel a zest for quick credit options, like loans. While loan apps could be necessary to keep financially afloat, vigilance should never be compromised, even after a loan has been borrowed. Legitimate loan app representatives may contact you or send reminders. Still, it would be highly unusual for them to use a personal number to establish a connection, demand payments through other portals, or contact your relatives and make false claims. If any such situation is encountered, always report it to legal officials and the loan company.