With the increase in digitalization in the financial sector, it has become possible to apply for instant cash loans online. But it has also opened an opportunity for scams because often, their virtual trace is untraceable.
Few Tips To Avoid Personal Loan Scams
1. Verify the details of the lender
The increase in the demand for loans in the financial sector has paved a way to scam potential borrowers. Often when we demand instant personal loans, we need emergency cash or credit. Hence making such borrowers a favorite target of the fraudster or con man. No matter how desperate we are in that situation, we should always have a clear head at the moment. Always check the personal details and past reviews of the lenders. Look into the details like their company location, partner banks, how long they have been operating, and whether they are following the prescribed RBI rules and regulations.
2. Loan agreement
There has been a lot of awareness campaigns regarding financial scams, especially regarding loans and investment. All these are done to alert us. Never sign an agreement without reading the terms and conditions. Always raise questions when you don't understand something. The clarity in the loan agreement is crucial.
3. EMI, Loan fees, and extra charges
The amount of EMI depends upon the type of loan, the amount, interest rate, and the repayment tenure. When you come across the ad offering loan with EMI at a 0% interest rate, it is a scam. Another way to identify a scam is when a lender demands you a loan fee in advance. A bank or an authorized lender never demands such fees in advance. It is included in the processing fees, and the amount is deducted from the loan amount. And the final amount is sent to your bank account.
4. Loan apps
The advancement in technology and digitalization has also paved the way for the fraudster to work virtually. There are many loan applications in the market, and there is a high possibility of most of them being fake. The fraudster or scammer can operate efficiently through these apps as they don't demand a registered physical office. The fraudulent apps offer a high rate of interest and complex schemes and terms and conditions. The money swindled through these apps is often untraceable once they have taken the money from the borrower.
5. Limited offer period
There have been many instances that you receive a call from a customer care executive for a loan. When they put unnecessary pressure on you to avail loan offer within a limited time. There is a high chance that it could be a personal loan scam.
Conclusion
Always be alert and careful when you are trying to get an instant loan in Delhi. With the sense of urgency for funds, we often overlook or miss some potential anomaly. When it comes to money, fraudsters are also on the lookout to scam a victim. Always carefully verify the credentials of the lender.
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5 Crucial Rules Which One Should Think of Before Appling For House Loans!
5 Risks Which One Should Know While Availing An Unsecured Personal Loan
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