The days when customers had to visit banks or other financial establishments for taking loans are gone. Now, the process is just a click away. In the digital era, loans have also become digital. The advent of fintech startups and digital credit availing systems has given rise to the popularity of online loans. The current situation of covid lockdown has become a breeding ground for digital loans. However, there are certain things to be considered before taking a digital loan.
Ankur Gupta, founder and CEO of Ruptok Fintech, says, before attempting online loans, one has to thoroughly enquire about the platform and its credibility. The best way is to check the particular platform’s digital presence, the credibility of the application or website and customer review. One can also check if the lender is registered at the Reserve Bank of India or associated with any authorised bank.
It is also important to learn about the different kinds of loans available in the market and their specifications. Is it a long-term or short-term loan? How many installments are there? What are the available payment options? What is the duration for loan disbursement? Experts say one should have clear answers to these questions before signing up for a loan.
Another significant aspect is to check the interest rates. One should have a clear understanding of the interest rate system in the industry because the rate differs according to the platform. compared to other loans, gold loans usually have lesser interest rates.
Once you zero in on your scheme, check all terms and conditions in the agreement. A good digital platform will communicate every aspect of the loan through its ‘loan executive.’ Those who take loans should be thorough about all aspects of the loan.
The next part is to understand different payment options and schemes. Online lending platforms with no branches will have flexible repayment schemes and options. The borrower should do transactions only with official accounts that are registered under NBFC/ Bank/ partner platform. Do not remit money to the loan executive. Banks consider online payments as secure as they can be tracked. Digital lenders also communicate well via emails, SMS and notifications about instant payments. What makes digital payments simple and different is their better customer service mechanism throughout the process.
