BEING AWARE OF THE LOAN SCAMMERS-

A common man only holds one weakness, family. The struggle to make ends meet and fulfil desires can get overwhelming. Often we find ourselves in troublesome situations looking for some extra money. It can be to pay some urgent bills or do some last minute home renovations or pay out some automobile repairs. At times like this, borrowing funds from a bank/ credit union/money lender may not seem like a good option. A number of reasons could be possible,like a bad credit score or some glitch in the paperwork or just bad luck. 

Businesswoman standing outdoors in city office building

How to identify personal loan frauds 

When in trouble we are in the quest for some easy way out like how to get a car without credit. Looking all around for a loan broker, we finally come across one. He promises you the moon and stars. Pretending to understand the urgency of the situation, he assures you the funds you require with the aid of his contacts and influence. Sits with you to get all the paperwork done in exchange of a small processing fee. You are desperate and get carried away with rush emotions and pay him whatever he asks for. End of story. You not only receive no funds as he promised but the small processing fee, you paid him has also gone for a dive. You are not only in a hole but also at loss. 

There is absolutely no thing as a guaranteed loan approval. A thorough credit and financial stability check is done before an approved loan. No genuine entity will make such dire promises. Fake lenders demand an upfront processing fee against the guaranteed loan approval and disappear in thin air. 

No provision of physical address is a strange thing. A proper address, email , telephone number, customer service are signs of an established business.

Everyone’s mail boxes are filled with dozens of unsolicited mails with attractive offers. During a rough patch, these look even more appealing to the eye and we provide our personal details to get the process started. There are two ways how this can go ahead.
1. The website is either nowhere to be found on the web anymore.
2. The fake lender might open an account with your personal details and lure money. This is called online phishing.

How can you be more cautious?

• No genuine lender asks for an upfront processing fee. That money is always deducted from your loan amount.
• A loan approval without a credit score check is too good to be true. 
• Pay attention to the URL’s while filing online applications. No ‘https’ or an expired security certificate can be a scam.
• Deadlines and exciting limited period offers should always be looked the other way. 
• Never share OTP or PIN numbers.
• Always question the unsolicited calls made by a lender.
• Never do any kind of transactions while on a call. 

Fake lenders spend a lot of time to make sure their websites or points of contact look legitimate. It is only through careful and thoughtful observations can you find the difference. It is necessary at all times even in grim situations to hold your guard high.

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