Online loan app scams are unfortunately quite common. Scammers often use these apps to trick people into providing personal and financial information, promising quick loans but ultimately stealing money or identity. Before taking loan from online loan apps you must take care of following things:
1.Research: Investigate the app thoroughly before using it. Look for reviews, ratings, and feedback from reputable sources.
2.Legitimate Lenders:Stick to well-known and established lenders. Avoid apps that promise unrealistic interest rates or require upfront fees.
3.Personal Information:Never share sensitive personal or financial information unless you are certain about the app’s legitimacy.
4.Permissions:Be cautious about granting excessive permissions to the app. It shouldn’t ask for unnecessary access to your device or data.
5.Contact Information:Check if the app provides valid contact information. A lack of clear communication details can be a red flag.
6.Check for Licenses:Legitimate lenders often require licenses to operate. Verify the app’s legitimacy by checking for proper licenses and certifications.
7.Phishing:Be wary of unsolicited emails, calls, or messages claiming you’ve been approved for a loan. Always verify the source independently.
8.Report: If you suspect an app is fraudulent, report it to the relevant authorities and platforms. Warn others by leaving reviews and sharing your experience.
The Securities Exchange Commission of Pakistan (SECP) has introduced stricter regulations for online loan apps. These rules include setting maximum loan limits, loan durations, and restrictions on the use of borrowers’ personal data. The aim is to prevent predatory practices and ensure the financial well-being of borrowers in the digital nano-lending sector.
Digital lenders and borrowers will now have exposure limits imposed on them, as per the SECP’s press release. Before signing up, loan apps must display a pop-up alert outlining the terms, conditions, and potential consequences of borrowing, following SECP directives. Furthermore, loan apps are now required to provide an in-app calculator for precise loan repayment calculations and associated fees. The SECP website contains a list of several NBFCs licensed by SECP that offer personal loans through digital platforms.
SECP Cancels License Of 3 Major Online Loan Apps In Pakistan.
Name Of illegal Loan Apps:
1: Easyloan App
2: Udhar Paisa Loan
3: Zaroorat Cash Loan
