Loan Applications for Starting a Business in Pakistan
Starting a business requires not only investment but also sufficient funds, a well-structured venture plan, and dependable investors. Without these key elements, it can be challenging to launch and sustain a successful business. But in the middle of a global recession, you will be needing one more thing; a loan.
It’s crucial to be prepared for uncertain circumstances where businesses may fail or pandemics could disrupt entire industries. In such situations, it’s important to have a plan and knowledge to navigate and overcome these challenges.
After the pandemic pretty much everything became digital; schooling, shopping, and banking. Now if we get to banking; what would you do when you want to get a loan; a business loan? The task ahead of you is to run to the bank and present your piles of documents for verification. Once the documents have been verified, the process will seem like a blur and the months will have flown by in a brief of activity.
Not to mention the possibility of a glitch appearing in your documentation, your loan will be rejected. What will you have then? A heartbreaking call from the banker said “Sorry sir, but we cannot give you the loan. Your business does not lay with our policies. Have a great day”
While turning your day bad, you have another worst spectacle in front of you; you’re withering business. Even if you apply to another bank, it will take half of your year to get all those verified according to their Terms and policy.
To your relief; Covid-19 has proven to be a blessing in disguise. It has given every sector the advantage to function digitally, without any exhaustion.
You don’t need to visit the bank every day, Just to find out whether your loan application has been approved or not. Now, your loan is just a click away.
The introduction of online loan applications has facilitated the growth of digital transactions and helped maintain business continuity in Pakistan. This move towards digitalization has enabled greater financial inclusivity and accessibility for the masses. These applications aim to streamline the lending process and make it more accessible to individuals and businesses alike.
Not to anyone’s surprise; we all know that where there are online apps; there are scams too. So, we have brought you tips to get a loan for your business, without getting scams. These tips will aid you to find a dependable app
SECP Registration and License:
This legal requirement aims to protect the public from fraudulent and unregulated financial activities. Companies must adhere to these regulations to ensure transparency and accountability in their financial operations. Failure to comply with these requirements can result in legal consequences for the company.
Merely being registered under SECP is not enough, and severe penalties await companies that run loan applications without a license, as emphasized by the SECP. It is important to adhere to legal requirements and regulations to avoid legal repercussions and ensure public protection. It is imperative for such companies to comply with all legal requirements and regulations to ensure the protection of the public.
The commission has also warned the public of Pakistan to be aware of scam companies, such as the Ponzi and pyramid schemes as well as multi-level marketing schemes. Enterprises like these are continuously reported to commit scams and leave business people penniless.
One major concern is that there are several fraudulent loan companies that collect their clients’ personal data for illicit purposes. These unregistered companies, which are not regulated by SECP, should be avoided at all costs to prevent identity theft and other forms of financial fraud.
Here are some comprehensive tips to save your money and your business from these scams:
1. Registration
To collect deposits from citizens, a company must possess a license and be registered under SECP, as stated previously. It is crucial to comply with these legal requirements to avoid legal repercussions and ensure the safety of public funds.
What you have to do is, go to the website of SECP and search for the name of the company that launched the loan application in question. The name of the Company is given under the name of the app in the play store or Apple store.
Now if the Company is registered and owns a legal right then it will pop up right after your search. And if it does not appear on searching its name, then you have got the wrong app mate.
2. License:
Verifying the license of a company under SECP is possible through email or a phone call to the SECP helpline. It is essential to ensure a company’s legitimacy before investing or engaging in any financial transaction. The e-mail address and the helpline are as follows:
E-mail address: queries@secp.gov.pk
SECP Helpline: 080088008
3. Checking App Permissions:
Checking the app permissions can save you from a big failure.
When you install an app, it asks for several permissions; such as access to the device media, gallery, contacts, and in-app purchases. So you have to be cautious enough to grant access to only those apps which can be safe.
Otherwise, the app can fetch your details as your account number and even your pin code to leave you broken.
Don’t be stunned by the app’s features, you may fall victim to fraud without knowing it. Stay vigilant and exercise caution when using unfamiliar applications to avoid financial loss.
4. Do Research:
When you are going to play in money, you need to be extra observant. When you do online shopping, you read the product description, and its reviews and Google the product to assure yourself that if I am going to put your money into this product, it is going to run down the drain.
Likewise, if you find a great loan application company, do not deposit your money right away. Read the reviews, and search them on Google.
In Case, if that company is fraud based, a tweet or a post about it being a con will pop out.
5. Strong Passcodes:
If you are downloading an app or making an account on it, use a powerful password. A strong password includes numbers, symbols, and letters. Strong passcodes are not only hard to remember but also hard to decrypt.
Use different passwords for different accounts. Having the same password for all your accounts is as dangerous as having the same key to all your doors. Making it easy for the thief to do their work.
Using unique passwords for each of your accounts can not only enhance your security but also prevent the compromise of other accounts if one of them is hacked. This practice can reduce the risk of identity theft and protect your sensitive information
Thanks for reading this article by ExtNext, hope you will learn something about Loan Applications in Pakistan