Personal loan scams are predominant if you fail to connect with credible lenders and NBFCs. However, before enlisting strategies to scale beyond the scams, it is necessary to analyze the types of fraudulency beforehand.
Loan Scams to Counter
- Advance pay
Fake lenders ask for upfront processing fees and approval charges, especially from individuals who are finding it hard to get an online loan application approved due to the lack of personal loan eligibility criteria (https://www.fullertonindia.com/personal-loan-eligibility.aspx).
- Phishing
Cyber attackers lure you into loan approval possibilities and get hold of your personal details in the process. Eventually, they open fake credit accounts, and you end up getting notifications for loan repayments, even without procuring a single dime.
In addition to these, fraudulent lenders also initiate unsolicited scams or offer guaranteed approval offers to siphon off an unwitting borrower.
How to save yourself?
- Keep a close eye on credit reports
You are the best judge of your loan approval eligibility. Therefore, if a lender assures that your poor credit score wouldn’t matter and shall not be taken into consideration, you must stay away from the same.
- Stay away from Unsecured Addresses
If an email or message aims at redirecting you to a particular address sans ‘https’ tag, it might be a phishing attempt to leverage information.
- Only Connect with Credible NBFCs
Consider NBFCs that boast of decent word-of-mouth credibility and offer competitive personal loan interest rates. Any lender who promises unbelievably low rates are best to be ignored.
Personal loan scams have picked up pace in the post-covid19 era amid the job-centric challenges. A desperate borrower, therefore, needs to be discrete and smart to avoid being duped.
Must Read: Everything You Need To Know About Small Personal Loan
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