Disadvantages of Digital Loan to Avoid Hefty Loss; Applying for a loan online? Then first know the advantages and disadvantages, otherwise there will be a loss of millions!
Fraud and blackmailing through applications for digital loans are rampant these days. In such a situation, if you are going to apply for a loan, do not be ignorant of its advantages and disadvantages.
Advantages of Digital Loans
Generally people submit documents to the bank to get a loan, but in case of digital loan you can apply from home. Talking about the benefits of digital loans, it includes time saving, easy comparison of different loans, loan availability and flexible interest rates. That is, you can compare interest rates and EMI installments with different banks before taking a digital loan. With flexible interest rates you can increase or decrease the EMI amount according to your time and salary.
Disadvantages of digital lending
Just like every coin has two sides, digital lending has its advantages as well as its disadvantages. When people need money, they pay little attention to interest rates, terms and conditions, digital loan application, loan company and whether the NBFC has a license or not. Digital loans can be riskier than physical loans. Its interest rate and EMI are also high. A large scale fraud is going on in the country through the application for digital loans and the government has also banned the app for this Chinese loan from time to time.
Care to be taken while applying for digital loan…
You can download a digital loan application form issued by a government-recognised bank and take a loan through it. In this, it is necessary to upload all documents and provide personal information like CIBIL score, salary slip, bank statement, Aadhaar card and PAN card. Also read all the terms and conditions carefully while applying for a digital loan just like a bank loan. Be sure to check the interest rate and the loan you are applying for. Also, don’t forget to check whether the bank is licensed by NBFC or not. Share any personal information only after verification by RBI.