If you don't have any money to lend, the only option is to take out a personal loan. A personal loan is an unsecured loan provided by banks financial institutions financial institutions to borrowers to meet their financial needs.

The best way to get a personal loan is to approach a bank. If this is not possible, the next best option is to seek help from a fintech. There are some financial technology companies that offer personal loans to borrowers, such as CreditBee, Lendingkart, Paytm, Money Tap, and Groww. Before you start borrowing money from a fintech platform, be aware of three key factors.

3 mistakes to avoid when borrowing money on a fintech platform:

Approaching the platform which is not registered with RBI: The banking regulator has uploaded a list of registered non-banking financial corporations. You can access the list here. Be careful to seek a personal loan only from a registered NBFC or from a fintech platform partnered with a registered NBFC.

2.Don't ignore downloads: It is essential to have the necessary regulatory approvals. Therefore, before taking a personal loan from a fintech platform, make sure that the platform is registered and authorized to engage in lending activities. Seeing that there are a lot of downloads on the Google Play Store, some individuals fall into the trap of the fintech platform.

In less than two years, 4,700 illegal loan apps were removed from the Google Play Store. A dozen fake loan apps that were removed by Google in September 2023 had more than 1 lakh downloads and 14 had more than 50,000 downloads. Every year, many complaints are filed against these apps. Data shared by the Ministry of Finance in the Lok Sabha reveals that 1,062 complaints were filed against these fake loan apps in the financial year 2023 alone.

Customer care system: It should be noted that the fintech platform should have a well-functioning customer care system. While loans can be accessed digitally through an app, there should be a situation where you can talk to someone - in case you run into a problem. Without a customer care department, it is almost impossible to resolve your complaints through the app.

So, always be careful to approach a fintech platform that is reliable and has a registered office in a metro city and a functional customer care number and most importantly - a good reputation in the industry.