SECP Cancels License Of 3 Leading Online Loan Apps In Pakistan

Due to a rise in online loan apps in Pakistan, certain lending apps have taken advantage of and been involved in fraudulent behavior.

Also read: 7 Best Instant Loan Apps In Pakistan 2023 with Low Interest Rates

These fake loan apps prey on weak people who are in search of quick financial solutions, promising them quick and easy loans but resulting in stealing the borrower’s personal information and identity.

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This time, the SECP has taken severe action against these fraudulent loan apps, promptly canceling their licenses. These fake loan apps have exploited the identities and blackmailed many innocent borrowers.

Also read: Exposing the List Of Fake Online Loan Apps In Pakistan 100+ {Updated}

Things to consider before taking a loan from online loan apps

Be aware and consider the following things before taking a loan from online loan app.

Reputation and Reviews

Always verify the legitimacy of the loan app and stay away from those involved in any scams. Read the reviews and ratings from legitimate sources.

Also read: Top 7 Urgent Loan Apps In Pakistan Without Interest | 50K-2Lakh Urgent Loan

Customer Service

Test the customer support services before using loan apps. A legitimate loan app always has responsible customer service to address any issues faced by borrowers.

Access to Sensitive Information

Avoid oversharing and granting access to your personal and financial information with any lending app. If a certain loan app requests unnecessary access to your gallery and other financial details, it may be a sign of potential fraud.

Also read: Urgent 10K-1Lakh Digital Loan In Pakistan | Abhi-Your Salary Now Loan App

Verify Licenses

Before proceeding with any online loan app, confirm its legitimacy. Genuine loan apps are always licensed and regulated by legal financial authorities.

Be aware of unprompted Correspondence

If you get unexpected messages, calls, or emails, claiming loan approval, verify before responding and avoid sharing personal information.

Also read: Paisayaar Loan App | Get 1k-25K Urgent Personal Loan Via Mobile In Pakistan

Unrealistic interest rates

Stay away from loan apps that entice borrowers with unrealistically low-interest rates, as their intention may be to deceive you with hidden fees or fraudulent practices.

Terms and Conditions

Thoroughly read the terms and conditions carefully before using any loan app. Make sure you’re aware of interest charges, penalties for late payments, and any other additional fees.

Also read: Business Loan In Pakistan With 0% interest | Best Low interest Loan In Pakistan

Red flag

Watch out for any suspicious activities by the loan app that may indicate potential risks or fraudulent actions when applying for an online loan.

Collateral Requirements

Before choosing a loan app, clarify whether the loan requires any collateral, so that you may avoid unexpected obligations.

Contact details

Check for accurate and up-to-date information to ensure the selected loan app is safe and reliable, guaranteeing smooth communication for any concerns you may have.

Also read: Urgent 10K-1Lakh Digital Loan In Pakistan | Abhi-Your Salary Now Loan App

Share insights

Share your reviews and cautions to raise awareness and caution others after using online loan apps.

Complaint

File a complaint against any loan app that harasses you or if you find anything fishy. Make sure to provide detailed information, including texts or screenshots, for a thorough investigation.

To file a complaint against loan harassment Click Here

Also read: How To Get 25 Lakh Interest-Free Solar Panel Loan Meezan Bank Best Guide

New Regulations Imposed By SECP On Online Loan Apps and Borrowers

Following are the New Regulations Imposed By SECP On Online Loan Apps and Borrowers After Press Release.

• Both Digital lenders and borrowers will now have unveiling limits.
• All loan apps must include an in-app calculator for loan terms and accurate repayment calculations.
• Lending platforms must ensure transparency and provide clear terms and conditions.
• Loan apps must show a notification to users before they register, providing details about the possible outcomes of borrowing as per SECP guidelines.
• You can also view a list of numerous NBFCs licensed and approved by SECP on the SECP website that provide personal loans through online loan apps.

Also read: Top 3 Loan Apps In Pakistan (50K-100K Urgent Cash Loan)

SECP Cancels License Of 3 Leading Online Loan Apps In Pakistan

Names of Illegal Loan Apps In Pakistan:

• Zaroorat Cash Loan
• Udhar Paisa Loan
• Easyloan App

Also read: SmartQarza Loan App- 25,000 Online Urgent Loan In Pakistan (SECP Verified)