Beware! You can be trapped; Fraudsters trapped people in loan trap this way
Reetu | May 25, 2022 |
Beware! You can be trapped; Fraudsters trapped people in loan trap this way
Financial fraud has increased as a result of the recent pandemic. The biggest number of occurrences of debt fraud were seen during this time, when people required money to pay medical bills and other obligations. Digital and technical innovation is proving to be a blessing for the financial services sector, but it also brings with it many obstacles that the average person may not even realise, despite the fact that he is far from protected from such hazards. Fraudsters use digital technologies to break into people’s accounts and commit financial fraud while masquerading as their identities and presenting as legitimate businesses. The COVID-19 pandemic, which was absolutely unknown to everyone, presented a wonderful chance for such scammers.
Many people become more insecure as a result of their inability to deal with adversity. Fraudsters took advantage of the circumstance by making tempting offers to provide quick and easy loans with no documentation.
To deal with short-term issues such as business losses, wage cuts, and debt defaults, naive people turned to false loan proposals, leading to an increase in personal loan fraud in India. Those looking for loans should be cautious of scammers. And we must spot such frauds and learn how to protect ourselves from financial and psychic harm.
The most obvious symptom of loan fraud – If any institution asks a refundable processing fee, GST costs, or insurance expenses from you in exchange for an easy loan, leave! Any legal or authorised financial institution would never require you to pay an advance fee before making a loan. If there is a processing fee, it will be deducted from the loan amount before being deposited to your account.
Another symptom of personal loan fraud is the lender’s pressure to make a decision quickly. Genuine lenders and firms do not offer limited tenure and allow the individual adequate time to make a decision.
The First Indicator is the identity of the company offering the loan. If you find a new lender that you have never heard about, it might be a scam. Check the lender’s credentials online and the certifications before you apply for a loan.
Before giving your confidential financial and personal information on an advertisement connected to loan offers, which you may notice on your Facebook page, YouTube page, or even in your local newspapers, always conduct a comprehensive investigation of the company’s creditworthiness.
Personal Loans are unsecured loan, which is why they have slightly higher rate of interest. Most lenders charge interest rates starting form 9% or 10%. If a lender is charging extremely low rates, like 5% to 7%, beware of such offers. No lender offers unsecured loans at these rates.
You should avoid any loan marketing that says ‘Loan Approval Guaranteed.’ A loan that is guaranteed does not exist. Loan acceptance is contingent on a variety of factors, including your credit history and information verification.
Fraudsters also send SMS, email, WhatsApp messages, and phone calls offering customers immediate cash through no-interest loans. Such emails and texts can offer you faith that you will receive a guaranteed loan even if you do not match any requirement. All of this is done with the purpose of obtaining your personal and financial information in order to steal your money. They may also pose as representatives of reputable financial institutions in order to incriminate you in their diabolical plan.
However, keep in mind that no authorised institution would phone you or send you unwanted communications to acquire your confidential financial and personal information under the guise of loan offers.
Your CIBIL Score is an important indicator before a loan is sanctioned. If the lender promises the loan without examine your credit score, something doesn’t seem right. Keep in mind that a poor credit history is a deal breaker when it comes to loans.
Always be attentive and aware of the developing trend of frauds, and share your experiences with your friends, family, and society in order to assist others. Be cautious while asking for loans. Always conduct financial transactions with reputable and legitimate financial institutions.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
