Gone are the days when you had to struggle and wait in long queues for an instant loan. With the accessibility of instant loan apps, you can easily apply for personal loans right through the comfort of your device. Apart from being instantaneous, the fact that these loans can be availed without any collateral has led to the unprecedented popularity of instant loan apps.
When applying on these platforms, the borrowers are only asked basic information like KYC documents, income receipts, and they instantly receive the loan amount based on the eligibility criteria. While from a borrower’s perspective, the quickness with which the loan amount is disbursed seems commendable, it might also raise flags for some. Questions like is my data secure or what will the company do with the information provided are bound to come up, so let’s find answers to these pressing questions.
Security of Personal Data
At a time when personal data gets treated as a digital currency, thoughts regarding its safety are quite legitimate. Any leakage of personal information, be it KYC documents or banking details, can be appalling. The level of security of your data depends on the following factors:
- Authenticity of the instant loan app
- Security measures taken by the loan provider
The chances of your personal data getting leaked and misused solely depend on these two factors, so let’s address this in detail.
Authenticity of the instant loan app
The first step to ensure that your personal information is secure, is to choose a genuine loan provider. You have to make sure that the provider is a certified entity and not just somebody luring you with a promise of a high loan amount at small interest rates. Here are a few ways with which you can verify the legitimacy of an online loan portal:
Verify the information presented by them
You should look them up and make a note of their contact/address details from their website to verify their authenticity. You will also get an idea if the company exists or if it is a mere bogus being run by fraudsters. If required, do contact the number provided to be sure of the legitimacy of the company.
Check for critical nuances on their website
Always remember — the website of every company reflects its intentions as a business. If a website is protected and encrypted, that shows it’s a genuine portal. However, if your browser lists security concerns, that more or less gives you a picture of what you can expect. The next time you visit an online loan website, take a look at the address bar. If you see a ‘lock icon’ next to the web address and the URL begins with ‘https’ instead of ‘HTTP’, then the website is encrypted and safe.
You might come across many inciting deals that you might almost find them unbelievable. Be alert and watch out for scams like asking for a pre-processing payment, or directly giving you a loan without running a background check. It may look exciting but always think twice before going ahead with it.
Security measures taken by the loan provider
While the loan portal can seem like a genuine entity, you will still be under the radar of data theft, if they do not have the necessary security features in place.
Speak to the loan portal
Do research about the portal and technology used
Make it a practice to always read community reviews — both good and bad ones. This will give you an idea about the shortcomings of the portal. If many have raised the issue of data breach and security concerns, then it’s probably best to look for alternate choices available.
Check whether the company has a third-party entity involved that offers you the loan services. Find out what information is being shared with these companies and also verify if they are genuine. It’s usually at this point that there is an exchange of data and is often monetized.
Some steps to secure your data
Since this information is available in the public domain, scammers have access to study and learn from it. Therefore, it requires both vigilance and awareness from your end to ensure that your data is in safe and secure hands. Look out for all red flags, if any, raised by an instant loan provider. Also, do not hesitate to ask them about the security measures they have in place as a company.
At SmartCoin, we not only disburse your loans quickly via our app, but we also keep your data secure. Millions of rupees disbursed across hundreds of thousands of satisfied users is a testimony of our commitment to client satisfaction and their data privacy.