5 factors to help you pick the best digital lending platform

Choose a platform that has an association with either a bank or a non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI). RBI publishes a list of banks and NBFCs on its website, and the borrower may quickly check if the lender is authorized for lending activities. This will help to ascertain whether or not the lender a customer has chosen is regulated by law, reducing the risk of going with an unauthorized lender. Borrowing through registered digital lenders' websites and applications is ideal.

Borrowers shouldn't let gimmicky, lucrative promises make them take the loan. Instead, they should take time to research the lender, and based on the knowledge and research obtained, they must choose the one that is best for them. While online financial services provide the most user-friendly experience and have simple processes but at the same time if not proceeded with caution can leave a bitter experience. It is important to make sure to inquire about the lender's presence in India; if so, the lender will be subject to RBI regulations and will abide by the regulations, making them a credible platform to get credit access.

The process of getting a loan has been accelerated. It is much more convenient, comfortable, and less stressful thanks to digital lending services. Within a few hours of applying, consumers may get loans directly deposited into their bank accounts from the comfort of their homes. Chat-bots and AI also provide 24-hour support. Lending has thereby become really simple. But with simplicity come certain risks, so it is also the customer’s responsibility to ensure that the information they provide, the lender they trust, and the journey of their loan are in line with applicable regulations. While checking the websites of lending entities, one needs to ensure that they are checking the right website as unscrupulous apps have started creating fake websites as well.

Borrowers should check the platform's rating on the Play Store and read through the details shared on the page's description to learn more about the lender, its lending policies, and customer-friendly terms and conditions. They should avoid downloading unregistered and unregulated lender applications. Taking a quick look at the reviews and the authors of the reviews will also help to understand if such reviews are genuine or not. Further, if the app has been recently uploaded or has very few downloads, it is advisable to avoid such apps.

Before moving on with the loan application process, borrowers need to be fully aware of the terms and conditions and ensure that they have read, understood, and agreed to the terms and conditions. They need to exercise due caution regarding the lender's credibility and also be satisfied that the lender has a robust grievance redressal mechanism in place, which can be approached in case of any issue with the lender/ app. Only once they are aware of the terms, conditions, charges, and other important conditions should they proceed further.

Through these five simple steps, borrowers can ensure that they choose the right digital lending platform for their next credit need. Being informed as a customer is better than being uninformed when entering the loan market. An educated and informed consumer will be able to gain access to credit through credible digital lending platforms and transact more, thereby increasing financial inclusion in the country.