When you’re under a financial emergency and need money quickly, a personal loan can seem like a solution to instant money. However, a person is often vulnerable during medical or personal emergencies, and availing of a personal loan through the regulated system at such times can seem hard. Moreover, some fraudsters will take advantage of your urgent need, so you need to be careful.
However, there’s no need to be sceptical. There are several telltale signs of personal loan scams, and once you’re aware of them, it’s unlikely that you will fall for them. Here are a few of these signs:
Demanding Up-Front Cost
You shouldn’t pay to get a loan. One of the most popular loan scams out there is asking for a fee before granting the loan. Any loan that demands money beforehand for “insurance” or “processing” is not legit.
Financial institutions charge a processing fee, but the amount is deducted from the loan they advance to you.
Guaranteed Loan Approval
You will want to stay away from any loan ad that says ‘loan approval guaranteed’. There’s no such thing as a guaranteed loan. Loan approval depends upon several factors, including your credit history and verification of your information.
Additional Read: Personal Loan with low CIBIL
If the lender’s website doesn’t have an ‘s’ after the ‘http’, that’s a red flag, and you should stop surfing through such sites immediately. The lack of an ‘s’ means that the website is not secure and is a possible sign of a scam. If you take a loan from such a website, they can use your personal information, including your bank account number and password.
Most personal loan scam websites imitate the official websites of banks and other financial institutions. So, you should always double-check the web address carefully.
No credit check required
Be wary if a lender is not concerned about your credit score and is willing to offer a personal loan with the standard interest rate. A legit financial institution will want to know whether or not you can pay the loan back on time and are, therefore, concerned with your creditworthiness.
Additional Read: CIBIL score range for Personal Loan
If you get emails or see ads that urge you to take a loan “now” because the offer is for a limited period only and will expire soon, be cautious. Banks offer loans at steady rates based on your credit history. Such pressure tactics are used to create a sense of urgency and trick you.
Fraud lenders send messages, emails, and calls to people in urgent need of cash regarding the instant availability of loan money. Such emails and messages can make you believe that you will get a guaranteed loan without any eligibility criteria or credit score check. The motive of such lenders is usually to extract your details. Please do not fall prey to them.
If you’re alert, cross-check the details and opt for known financial institutions. This way, you will be safe. The pre-approved offers from Bajaj Finserv on their loans and other financial services make getting a personal loan safe, easy, quick, and convenient.
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