Archive for July 2022


COVID-19 Digital lending scams have risen amid epidemics as economic tensions have prompted fraudsters to hunt down those in dire need of money. The more pressure they put on their immediate money needs, the more vulnerable they are to debt scams.

A basic understanding of digital loans and their methods can help keep people safe from fraud.

Here are some important things to know before choosing and trusting your lender.

1) Approved by RBI

First, note that lenders must be registered with the Central Banking Authority, the Reserve Bank of India. Lenders who are not registered with the RBI are not allowed to lend money and will not follow the RBI guidelines. Best licensed money lender in philippines .

Lenders should be aware that all lenders know their customer for each applicant or apply KYC principles. Lenders who do not comply with KYC rules should be immediately suspected.

2) Understand the red flags.

Although legitimate lenders follow the guidelines set by the RBI, there is no website or list of illegal lending apps. This in itself is a red flag. So if the company doesn’t have a website, never download an app.

Even if a website is listed, check carefully to see if the company that owns the app is legitimate and registered with RBI or Non Banking Financial Company or RBI or Bank. Works with registered NBFCs.  If in doubt, read the reviews on the App Store page to find out if there’s any cause for concern.

3) Clarity and transparency

All RBI-registered NBFCs will outline their grievance redressal procedures and privacy policies to protect consumers through the legal lending app. However, never download apps from lenders’ websites. Instead, just download it from the App Store because there are additional checks that need to be done to enter an app.

4) Other telling signs

All of the above indicate that the app-based lender is unreliable. The RBI has issued a number of warnings to potential personal loan seekers, including small businesses, to avoid falling prey to unauthorized money lending apps.

5) Other fraud markers

Demands for advance payment and promises of “guaranteed approval” and no documents are all clear signs of fraud.  In the meantime, here are some key tips to detect fake lending apps:


Remember that while digital technology enables instant efficiency and the disbursement of loans in minutes, it can also be misused to deceive people.  Ultimately, the best way to prevent digital loan fraud is to always be on the lookout for potential scams by double-checking every loan offer, lender portal and lender’s credentials, and paying attention to the red flags mentioned earlier. Don’t forget, there are no security shortcuts in the world of digital lending.