5 Ways to Verify your Personal Loan Lender

2022 has been a challenging year for Aashna so far. First, it was her car that needed repairing; next, she had to pay for her kitchen renovation. From utility bills to transportation, all the expenses piled up.

So when her grandmother fell ill, Aashna knew she needed to apply for a low-interest personal loan to manage the growing expenses.

However, her concerns didn't end here. The recent cases of financial scams and frauds were enough to keep her on the fence. Even if she applied for a loan, how could she ascertain the lender's credibility? Confused, she shared her doubts with her friend, Tarun, who worked as a loan officer.

Tarun told Aashna five simple ways to verify the lender before applying for a personal loan. Here's what he said.

1. Be Familiar with Your Lender

When applying for a loan, it is extremely important to verify whether the lender is reliable. An easy way out is to check the lending institutions in India registered with the RBI and their registration numbers. Apart from this, you can also apply for an online personal loan from a reliable bank that has been a part of the financial system in India for a long time.

2. Go Through the Lender's Website

Before applying for a loan, applicants need to check out the website of the lender. Make sure the website is updated all the essential information, such as the Certificate of Registration (COR), Company Identification Number (CIN), details of the product and services offered etc.

Also, check the key security features like "HTTPS" in their website URL to ensure maximum security and authenticity. Many illegal lenders operated through mobile apps, so the chances are that they wouldn’t have a website to their name. If that was the case, it is a red flag and applicants should choose a different lender.

3. Determine the Loan Application Process

Fraudsters are always on the lookout to fool people and steal their hard-earned money. You may get a lucrative loan offer claiming ‘affordable personal loan approved within minutes without Aadhar or PAN card’. This is where you need to be careful. Unauthorised lenders often come up with such offers to attract users.

However, in contrast, verified lenders offer a transparent application and approval process without skipping any crucial steps. Check if the lender disclosed the interest rate and fee structure on their website.

4. Check the Lender's Physical Address

Every personal loan lender operating in India needed to have a registered office in India, an email address and a phone number. So, if you are applying for a personal loan, make sure you verify this information on RBI's website before getting a loan.

5. Check the Website Reviews

Lastly, you also need to check the lender's website or the mobile app on the App Store and check customer reviews. This way, you can get an idea of the concerns of the existing and the past borrowers. In addition, you can also check for responses on the internet to make a well-informed decision.

After learning all this, Aashna felt more confident about her decision to apply for a personal loan. Thanks to Tarun, she was now aware of the steps she needed to follow to verify the lender when applying for a loan.

Over to You

Are you looking for a loan too? Due diligence and a little awareness can help you secure an affordable personal loan with a reliable bank. Get ready to apply today!