Beware of Fake Pre-approved Loan Offers: What You Should Know

Beware! Don’t fall prey to pre-approved fake loan offers. Read the blog to learn how you can identify and avoid fake loan offers.
Beware of Fake Pre-approved Loan Offers: What You Should Know
2 mins read
05 Jan 2021

Key Takeaways

  • Over-enthusiastic callers announcing pre-approved loans along with attractive offers could be fraudsters roping you into a loan scam
  • Look out for important signs of a FAKE pre-approved loan offer
  • No interest in credit history and asking for upfront payments are big red flags

You receive a call from an enthusiastic and considerate representative claiming to bring you the news of an attractive pre-approved loan offer. Take a moment and pause yourself from acting on this phone call. More often than not, such calls are made by fraudsters who are on the lookout for someone they can make easy money off.

Beware of fake pre-approved loans with attractive offers

Most of the fake pre-approved home or personal loan frauds begin with a simple phone call from a so-called lender who offers you great incentives and interest rates on the loan. They make a lot of promises and claim to get you guaranteed approval. That right there is the first sign of a loan scam. There can never be a 100% approval guarantee. There are just too many variables in between the application of the loan and it being sanctioned to have a guarantee for the loan approval. As the number of online loan scams increase per day, we bring you some pointers that act as a red flag and help you identify a loan scam or fraud. Pay attention to the details and avoid being duped in order to save your hard-earned money. Listed below are a few things to look out for.

This is how a fake loan sanction letter looks like. Check out the company name, Bajaj Finserv Lending.

Loan Approval Letter: The letter you receive as a confirmation from the bank or financial institution for your pre-approved loan is a great way to confirm whether the scheme you are being offered is a scam. One should always check the following to verify the authenticity of the loan.

  • Check the details of the bank for any spelling mistake or false email ID and website mentioned on the letterhead. Cross-check the website address online and ensure that it matches the one on the letter. Such fake loans are also available at an attractive rate of interest, keep that in mind
  • The next step is to match the date of approval mentioned to the reference number on the letter. The date of approval should fall within the financial year mentioned in the reference number, which in cases of fraud is not the case
  • The stamp and the signature of the individual approving your loan should belong to the same person of authority and the stamp should reflect authenticity

Legal Fees: You should never trust those who ask you for legal fees for sanctioning your loan. Banks and financial institutions never ask for a fee for your loan approval. Any caller who is eager for you to sign the deal and asks for an upfront payment is trying to lure you into a trap and should be reported. If and when banks levy some charges for your loan, they deduct the amount from your loan money and then transfer the balance into your account. So, beware of such fraudsters who claim to bring you the best offers for a pre-approved loan.

The signs mentioned above are some of the biggest red flags when it comes to pre-approved loan scams in India. Watch out for them and keep your hard-earned money safe. If you are a victim of such a scam, report to the cyber-crime cell and the police station of your area.

Whenever dealing with loan documents and approval procedures, make sure you check and verify all the details minutely. With the approval letter, you must keep your eyes open for spelling errors, the correct official website and email ID of the bank. Remember, the reference number and date of approval should be within the same financial year and none of the banks or financial institutions would ever ask for a legal fee. These are small but essential details that will help you differentiate between a loan scam and an authentic lender.

If you are ever reached out by someone claiming to be from Bajaj Finance and asking for your OTP and other financial details, we request you to not engage in any conversation or share your details with them. It is advised to immediately report any suspicious instances to police and cybercrime cell as well as intimating Bajaj Finance about the same.

To check your pre-approved loan status, you may log on to www.bajajfinserv.in and fill in some basic details such as name, mobile number and city. An OTP is then sent to your mobile number. Once you submit the OTP, your screen will reflect all the offers that you are eligible for, based on your CIBIL or credit score. Also, the processing fee for your pre-approved loan from Bajaj Finance Limited will be deducted from the sanctioned loan amount itself.

For any such queries, visit https://www.bajajfinserv.in/reach-us

Savdhaan Rahein. Safe Rahein.

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