Being more careful with your personal information on instant loan apps. What you need to know
The rise of tech-led finance companies have made managing personal finance for the common citizen much more convenient. Instant loan apps like SmartCoin have made credit access unbelievably easy, fast and secure. These apps assess your profile, eligibility and repayment capabilities based on the personal data you agree to give them access to. These loan apps are mandated to ask for your permission before accessing your data and with a lot of these apps, you will find that granting requisite access results in your loan application form being automatically filled in, within seconds.
While online instant loans are much easier to get approvals on, you will still need to meet specific KYC eligibility criterions. This is the principal reason why allowing access to your key details is a mandate for these instant personal loan apps. That’s not all, there’s more reasons why sharing your personal information is key to making your instant loan application easier.
— SmartCoin | Instant Loans (@SmartCoinIndia) February 17, 2023
How does it work?
Let’s start with understanding what kind of data is typically required to get an instant personal loan on an app-first platform like SmartCoin, as opposed to a traditional bank. With a bank, you are expected to put together photocopies of your identity, income, and address proofs among others depending on the explicit instructions from the lender. When you are applying for an instant digital loan, all of these are reduced to screens allowing you to complete these steps in minutes. This information is then used to conduct credit checks to determine your loan eligibility.
You must also know that these apps are never able to access your personal data without your permission. According to recently laid down guidelines by the RBI, you have complete control over the access to your data with an option to deny certain permissions at the time of installing the app and after your immediate association with the online loan app is over.
Get your hands on the best loan offer
Most of the instant cash finance apps will require your quick registration. It is only following this that the available credit limit for the customer basis the details shared is unlocked. The request is sanctioned immediately as you complete KYC successfully, meet the eligibility standards and share consent for terms and services. The process is 100% digital and contactless. It can be as fast as 5 minutes or can take a maximum of 2 days in certain cases. Based solely on your data, the app assesses your risk profile and unlocks the best loan offer for you. All of this contribute to expediting the approval and processing of loans.
Stay protected under relevant data security measures
Whenever you receive instant loan approval, some lenders implement data security measures through their digital lending application such as finger lock or double encryption. This measure is necessary to ensure that only you, as the borrower, have access to withdraw from your credit line. In the event that you lose access or misplace your smartphone, intruders cannot withdraw money from your loan account and serve to increase your debt without authorization from you.
Takeaways for the future
As a customer who has downloaded any instant loan app, it is one of your rights to ensure that your privacy, personal data and safety are never compromised. As digital adoption accelerates, cyber crimes and other online frauds are becoming more prevalent than ever. You need to know how to protect your data and privacy from unauthorized apps. When it comes to finance, look for regulated platforms whose partners are accredited by the RBI.