Personal Loan Scams That You Need To Know And Avoid
Those seeking financial aid are often in a precarious position, and no one knows this fact better than a bunch of seasoned scammers. As Personal Loans aren’t easy to acquire in the highly regulated banking sector, loan seekers frequently search for other alternatives that may prove to be unsafe. Desperation is one emotion that every fraudster relies on to make a score. The more desperate you are for money, the higher the chances of you being taken for a ride.
So what should you do in order to effectively avoid Personal Loan scams? Well, you first need to educate yourself in the ways of fraudsters. Once you know the modus operandi of expert scammers, it’s unlikely that you’ll take their bait. Here’s how these personal scams work.
The Pay-To-Get-A-Loan Scam
Picture this. You’re searching high and low for some funds in your cash-strapped condition. But all the financiers you approach smile sadly at you and shake their heads. In a frenzy, you search for offbeat options outside the realm of regulation. You stumble upon the ad of a loan broker and immediately call the person. The broker is a friendly man; he understands your predicament and promises to use his influence to get you a loan.
Also Read : Top Reasons for Personal Loan Rejection
He gets all the paperwork in order and tells you that your loan’s been approved by a third party. But there’s just one problem, you need to pay a small processing fee before you actually receive the money. Eager to get your hands on some cash, you make the payment and wait for your now-approved loan. The days turn into weeks, but there’s still no sign of your financial aid. You try calling the broker, but there’s absolutely no answer. After a while, the truth begins to slowly sink in—you’ve lost the money that you paid to receive your fictitious loan.
Wondering how to detect Personal Loan scams such as these? Well, just find out if you’re going to have to pay beforehand; no trustworthy company will ask you for an upfront payment. The loan processing fee is usually deducted from the loan itself after you’ve been sanctioned the money. The cash advance ploy is one of the most prevalent Personal Loan scams in India, and you don’t need much foresight to avoid being trapped in one.
Online Phishing Frauds
The internet is the hunting ground of 21st-century, tech-savvy fraudsters. And many of them tailor elaborate phishing scams to steal your money in the most convenient ways possible. In order to discover Personal Loan scams such as these, you need to be more aware of how they actually work.
One common phishing scam is to set up a fake website that perfectly imitates a popular banking site. Such websites have addresses that are almost the same as the original ones, but are nevertheless a bit different. For instance, if a popular bank named the Bank of XYZ has an official website with the address, www.bankofxyz.com, its fake counterpart will very likely sport a similar name that’s capable of fooling customers. A website with an address like www.bankoffxyz.com or www.bankofxyzz.com isn’t going to attract much suspicion, provided it looks the same as the original website.
Now what happens when you try to take out a Personal Loan on such websites? Well, they make use of the personal information you provide—which can include your bank account number and password—and withdraw funds from your account or worse, open a credit card in your name.
If you’re honestly worried about how to avoid Personal Loan scams, then here are a few tips to help you out.
- Double-check the address of your bank’s website, especially if you’re considering a quick loan.
- Be wary of those who aren’t interested in your credit history. Ads that guarantee loans for just about anyone often lead to scams.
- If you’re acquiring a Personal Loan with the help of a broker, be sure to verify his or her background. It’s not advisable to use the help of loan agents who can’t validate their credentials.
- It goes without saying that you should never pay for a loan in advance.
- Ensure that you’ve read the agreement papers to your full satisfaction before actually signing them.
These tips on how to avoid Personal Loan scams should come in handy to those looking for financial aid. Not only is it important to know what you’re getting into well-beforehand, it’s also crucial to understand what to shun in your quest for a loan. It’s quite easy to avoid Personal Loan scams when you know what you’re looking for and more importantly , how you can get it.
If you’re looking to quickly get some credit, Bajaj Finserv offers a range of services that will satisfy all your requirements. With about 150 branches across the country, this company provides financing options not only for salaried and self-employed individuals, but also for companies and firms.
Bajaj Finance Limited, the lending and investment arm of Bajaj Finserv group, is one of the most diversified NBFCs in the Indian market catering to more than 6 million customers across the country. Headquartered in Pune, the company’s product offering includes Consumer Durable Loans, Lifestyle Finance, Personal Loans, Loan against Property, Small Business Loans, Home loans, Credit Cards, Two-wheeler and Three-wheeler Loans, Construction Equipment Loans, Loan against Securities and Rural Finance which includes Gold Loans and Vehicle refinancing Loans. Bajaj Finance Limited prides itself for holding the highest credit rating of FAAA/Stable for any NBFC in the country today.