People take personal loans for different reasons, but most of them intend to meet some emergency or non-emergency needs. As a large population in India is always looking for loans to meet their needs, many market players offer loans at low-interest rates and easy terms.
However, when dealing with a loan agent, you must listen carefully to their terms and conditions and be careful. Fake agents play tricks to cheat your money or can use your documents to get a loan in someone else’s name. Let us know how to avoid these scams.
Solicitation Of Limited Offers
Sometimes, the lender’s agent will pressure you to speed up the process so that you don’t miss out on an exciting offer that is only valid for a limited time. They will instigate you by saying that you will save x amount of money if you apply for it within a limited time. No matter how good the offer is, don’t accept it without knowing the background details of the lender.
Credit Check Required
A lender can never pass a loan without checking your credit history, i.e. your CIBIL score. After all, he is loaning you money and needs to know you will repay it on time. Since the lender has not seen you, the best way to analyze whether you can repay the loan on time is by checking your credit history with your CIBIL score. If he does not do this, then something may go wrong.
High Advance Fee or Cash Fee
The advance processing fee varies from lender to lender. It can be anywhere between 0.5% to 2.5% of your total loan. But if someone asks you for a higher processing fee, it is better to check with the lender through a different channel.
Secondly, the processing fee is also submitted online. Something is wrong if the lender asks you to pay it in cash.
Big Penalty
A fake lender says you will be fined if you delay loan processing after reaching a fixed stage. At the same time, the reality is that the lender imposes a penalty on you only when you pause the payment.
Scammers are clever people; they take advantage of someone’s lack of knowledge or time. It’s always good to keep your eyes open. To stay safe from scammers, keep complete information about the subject yourself. Avoid the tempting offers and do your due diligence before signing the loan documents. Don’t take any step in haste.
