The festive season has witnessed massive sales both in offline and online marketplace, and the atmosphere is still blossoming in the sales mood.
A recent report by consulting firm RedSeer highlighted that the online sales from Amazon, Flipkart and others reached 47 billion rupees in the week through October 15.
In the month of October, UPI processed transactions worth 16.46 trillion rupees, marking an increase of more than 40% from a year earlier.
Also, the credit card payments jumped 16% to 1.42 trillion rupees in September, data from the Reserve Bank of India shows.
All this shows that the consumers are in festive mood and the online mode of payment is their preference.
Another key tool that propels the most amid the festivities is the digital lending. Many choose to take quick loans online to meet their requirements.
This is the time when people splurge on lifestyle products, home décor, consumer durables, aspirational electronic goods, etc. to bring happiness to their homes or make their loved ones happy.
During the festival season, consumers go bullish for instant or short-term loans. But they need to take all the precautions and exercise due diligence to safeguard their financial well-being.
How to protect yourself from Digital lending frauds
Bejoy Jolly Anthraper, Business Head of Geojit Credits suggested a few parameters that the borrowers should keep in mind while taking loans.
“Research reputable lenders or established lenders only, verify lenders credentials by checking whether they come under RBI and have proper licenses, read terms and conditions carefully, be cautious of unsolicited offers, avoid upfront fees and finally trust your instincts.”
He further advised that the borrowers should always choose secure internet connection and avoid using public wifi networks.
“Read privacy policies and use strong passwords for online accounts and regularly monitor your accounts and if you notice any unauthorised transactions immediately inform your bank. Be cautious of phishing attempts and avoid clicking suspicious links,” Bejoy mentioned.
Aditya Damani, Founder and CEO, Credit Fair advised that borrowers must go for authorised digital lenders, and no matter how attractive the loan offers from unlicensed and unverified lending apps may appear to be, it’s always advisable to stay away from such traps.
“One needs to make sure that the terms and conditions of the loan are clearly spelt out. Agreeing to ambiguous terms makes one vulnerable to unnecessary harassment. Borrowers must verify the contact details and physical address of the digital lending company,” he said.
Common signs of digital lending scams
There are a few common signs that borrowers can see and identify if they are being trapped. It is very important to identify these signs and act vigilantly to safeguards yourselves from being defrauded.
Bejoy further highlighted a few warning that can help the borrowers from digital lending scams.
“Avoid unsolicited offers which reach out to lenders without proper consent, be suspicious of the guaranteed loan approval without checking proper credit history, lenders charging upfront fees, lenders without physical address or contact information, poor website design and spelling errors, unusual payment methods,” he said.
While Aditya Damani, Founder and CEO, Credit Fair, said, “Quick loan apps that entice borrowers with unrealistic schemes, pay scant respect to credit history, ask for consent to access personal information and demand processing fees upfront must be avoided.”
