Protecting yourself from booming online loan fraud in India
Personal loan scams are at an all time high. The current foreclosure has seen millions of people lose their jobs and thus find themselves without a stable income. Many unscrupulous parties are taking advantage of the situation, preying on the innocent like sharks. They have amazingly great deals on quick cash loans with high funding and low interest rates.
Now, the promise of help in dire straits can really lead anyone to fall victim to these so-called “fabulous loan offers” that often come with a trap – you have to pay a small fee before you get it. ‘silver. Yet those pressing bills at the door can lead anyone to fall into a trap that promises funds but ends up being a fraud. You pass the fees on, thinking it’s a small price to pay for the bigger reward of a much needed loan. The moment you send the money, the line on the other side drops; you’re stuck, and they’re gone. You have been duped under the false pretext of obtaining a loan. It can really be devastating in a situation where you are already strapped for cash.
So how do you sift through scams? How to recognize genuine cash loan applications / lenders from fake? Read on for tips to keep in mind that will protect you from the loan scammers out there.
Never pay a fee before receiving the money
Loan scams trick people into asking them to transfer a small amount before they get the funds into their account. They may explain this payment as a “loan processing fee” or a charge for their services. This is a clear warning sign that the lender is trying to cheat on you. A genuine loan will see the lender either not charging you any fees at all or simply deducting their fees from the loan process themselves. Personally, you should never have to send money.
Always look for a physical address
Before proceeding with a personal loan application, be sure to research the physical address of the lender. If they don’t have an address that you can find online, it’s best to stay away from any relationship with them. Remember, they can take your money and information and disappear without a trace.
Don’t fall for pressure tactics
Beware of lenders who post urgent messages online that their loan offers will expire soon. A real lender or loan application never uses such pressure tactics to force you to make a quick and hasty decision.
Be vigilant against phone crooks
It is not recommended that you take out a cash loan that is announced to you over the phone by an arrogant salesperson. Even if you get such a call, ask them for their business contact details and connect to the internet to check if it is legitimate or not. You need to check if the lender has a physical address, work contact / toll free number, and customer reviews on forums. If you can’t find any mention of the loan company online, chances are it is a scam.
Avoid secured loans
A real lender will never give you quick secured loans. They will always want to check your documents before transferring the funds. A lender who doesn’t care about verification and just asks you to pay a nominal processing fee for a simple secured loan is a con artist looking to fool you.
Keep these points in mind when applying for a loan so that you don’t get caught out when you need it. However, there are also credible apps in the market that genuinely provide loans to those in need. Some of these apps in India include – RapidRupee, EarlySalary, MoneyView. So at the end of the day, you have to be careful with the checklist given above when looking for loans online, but don’t get carried away by the negative sentiment around these frauds that you overlook worthy applications for. trust.