Tricks To Identify Personal Loan Scams In India

Scammers can come in any form and on any platform. Find out the 4 tricks to identify personal loan scams in India in detail!

3 Oct,2022 10:33 IST 140 views
Tricks To Identify Personal Loan Scams In India

The banking and financial sector has seen an immense rise in digital and technological advancements. Mostly, it has been a game-changer. But there have been significant scams in the industry and some financial frauds in India. Then, how can you ensure you’re not the next victim of a scam?

This article discusses a few tricks to identify personal loan fraud in India.

Tricks To Identify Personal Loan Frauds In India

Scammers can come in any form and on any platform. Some may manifest as a phishing link in your email or a clickbait message in your inbox. An example of a fraud text can look like this:

“Dear Customer, you are eligible to claim your pre-approved 0% interest-free loan of INR 5,00,000. Click on this link to avail the offer immediately.”

Doesn’t this message give you a hint of being too-good-to-be-true? It should be your first cue, and you must refrain from checking the link out of curiosity. A few other tricks to spot loan fraud include the following.

1. A Scammer Asks For An Upfront Loan Fee

No legitimate lender asks for an upfront fee before disbursing a loan. Therefore, if the person asks for an upfront fee to give you a loan, that’s the first red flag.

2. A Scammer Ignores Your Credit Score

Your credit score is the most vital detail for a lender. Fundamental credit verification is the first step in the personal loan eligibility criteria. Additionally, they would require the details of your ongoing loans and repayment history to assess your eligibility before approving a loan. It is fraud if you find a potential lender is disinterested in knowing your credit score.

3. The Lender Wants You To Act Quickly

Sentences like “The offer is valid till noon”, “the offer is a limited edition, please avail it by today”, or “we are considering you only by the end of the day” creates a sense of urgency and pressurises you to act before thinking clearly. Genuine lenders like IIFL Finance or others would not make a limited period offer or create exclusive terms only for you; they will provide you enough time to make an informed decision.

4. Other Ways

The varying ways to identify the fraudsters include

• The lender’s unsecured website
• Making loan guarantees
• Easy money with surprisingly low-interest rates
• The lender doesn’t ask for proper documentation
• Concealed terms & conditions
• No actual branch addresses

How To Prevent Yourself From Being A Scam Victim?

Scammers can go beyond imagination to trap you in their schemes. You can use the below checklist not to fall prey to these scams.

• Verify the lender’s physical office address
• Cross-check the offer with the company your lender claims to be a part of
• Trust your instincts if the offer seems too good to be true
• Read the terms and conditions written in the fine print
• Do not click on unauthorised links until and unless you are sure it’s genuine

Apply For A Personal Loan With IIFL Finance

IIFL Finance is a leading personal loan provider. We provide quick loans for small businesses with small financial requirements up to INR 30 lakh with minimal personal loan eligibility criteria. You can check the interest rate at your nearest IIFL Finance branch or online.

The entire process, from application to disbursement, is 100% online. The disbursals take 24-48 hours. This way, you can fulfill various business needs and repay them per cycle. Apply for an IIFL Finance personal loan today!

Frequently Asked Questions

Q.1: How can I reduce EMIs on my personal loan?
Ans: Improving/maintaining a credit score above 750 can reduce EMI for personal loans. You can negotiate better interest rates or discounts if you have a good relationship with your bank.

Q.2: Why is credit history verification necessary in disbursing a personal loan?
Ans: Credit history proves your credibility to your potential lender. Your lender needs to trust that you will make timely payment of your loan dues and a credit history verification builds that trust.

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