When you’re dealing with finances, you have to be very careful with the institutions you associate with. Especially with online Personal Loan Scams, anyone with a legitimate-looking website can dupe you into inviting you for a loan. You fill in all your bank information into an unverified website and that gets compromised.
But filling in your private information is the last step you take when availing personal loans online. So, if you see any of the following red flags, you should begin considering that the lending institution is fake and you are being scammed. There are various kinds of scams that a borrower is unable to identify at the time of availing the loan and gets trapped into the scam. Here is a list of some signs which indicate that you may be stuck in the scam situation. Go through these points carefully and try to avoid where you see these signs:
5 Signs Which Indicate You are Stuck in Personal Loan Scams
- Guaranteed Loan Approval: This is one of the brightest red flags. There is no such thing as guaranteed loan approval. If the lender is offering you a 100% guarantee, there is a good chance that you are being scammed. Guaranteed approval means that no matter how low your credit score is, the personal loan will be approved. Every lender is required to run a credit check on the borrower. If the credit score is unsatisfactory, no legitimate lender will offer you a loan. But if they claim to not run a credit check, the lender is 100% fake.
- Unsolicited Communication: Now you may receive an email that says that your guaranteed loan approval or a discount on a personal loan interest rate will expire soon. The urgency of the email will drive you to click the link to their website. The website you are being directed to might even look legitimate. And if the interest rate is low, you might even think about taking a loan without any urgent requirement. But once you fill in your bank details, you will notice that no money has been credited to you but you begin to get calls and messages for the EMI payments. This is how online phishing occurs. So, ensure that you do not respond or engage with any unsolicited emails or messages offering you lucrative discounts.
- Website Security: Since personal loans can be taken online easily, most people opt for this option for the ease it offers. Scammers take undue advantage of this fact and approach you with a legitimate-looking website. For a layman, you might not be able to tell the difference between an unsecured website and a legitimate one. But there are certain signs on the webpage that tell you if the website is real. There will be a tiny lock icon near the address bar of a legitimate website and it will always begin with https. The ‘s’ in https stands for security. Scam websites will be missing all these details.
- Advance Fee: Lenders, online or offline, will never ask you for an advance fee for processing or verification. They do have a processing fee, but you can either make the payment after the loan is credited or have it deducted from the loan amount. Fraudsters will either lure you into providing all your bank/atm card details to carry out phishing or ask for an advance fee. If any lender or an agent is asking for an advance fee, you should not trust them.
- Missing Information: Any loan that you take must always disclose all the information, policies, and terms in full. If the lender or the agent seems to curtail any information or if they try to make things like we are not able to disclose all the necessary details right now according to policy, you should drop the idea right there. You should also always look for a physical mailing address and an email address with a proper domain name. If it is a scammer, there will be no physical mailing address. And even if there is, you should confirm it with Google Maps. Always try to take a loan from a well-known lending institution having proper mailing or email address, google business listing, mapping, and all the required information mentioned.
People are being duped and scammed every day in India. So, it is best to be cautious and safe rather than sorry later.