Say Sayonara to Scams! Golden Tips to Avoid Personal Loan Fraud

While personal loans are considered one of the best ways to access funds to cater to emergencies, various fraud operations still exist in the market. As the Covid-19 pandemic continues to wreak havoc around the globe, fraudsters have been taking advantage of the chaos by exploiting the high demand for cheap personal loans. It is essential to exercise due diligence before signing up for cheap personal loans offers, especially if they sound too good to be true. In this blog, we share some golden tips to avoid personal loan scams.

Question “Too-Good-To-Be-True” Offers

Any prospective personal loan offer that you explore must sound realistic and not too good to be true. Suppose you come across cheap personal loans that have unbelievably low interest rates and claim to have no eligibility criteria. In that case, you should double-check the lender’s track record. Most such offers often turn out to be scams. Providing any of your personal details to dubious personal loan companies not only compromises such details but other aspects of your life.

Check for Hidden Charges

Although personal loans are available at fantastic interest rates (especially for individuals with a good credit history), you must always know the charges involved. Before you sign on the dotted line, you must remember details such as interest rates, penalties, and possible hidden costs.

You must read the contract to check for hidden charges not expressly mentioned, such as late payment penalties and administration fees. If you don’t, you might have to deal with them later on.

Scrutinize Plans with Too Many Perks

Scammers often offer a ton of perks with personal loans to attract anyone that might be in dire need of funds. You must carefully read the terms and conditions of such offers and know about the total cost of the loan that you will have to repay. While the terms may seem attractive, they often last for only a year or end whenever you miss out on a payment. Fraudulent lenders don’t state all the intricate details on contracts, and signing allows them to scam you whenever the opportunity arises.

Avoid Fraudulent Calls Related to Loans You’ve Applied For

You need to submit quite a few personal details for the verification and approval of your personal loan application. This includes (but might not be limited to) your name, gender, date of birth, employer information, bank details, and PAN. In a few instances, this information ends up in the hands of scammers who will try to call you on the pretext of reminding you of a missed loan EMI or a new offer. You must know precisely who the lender is and should NEVER give out any information to an imposter. If someone calls you from an unknown number making such claims, it is best to hang up and call your lender on the number you know or get in touch with them online.

Conclusion

A little research always helps when looking to access genuine, authentic, and cheap personal loans. Reputable personal loan companies such as KreditBee have got you covered when looking for the best terms on cheap personal loans. Simply download the app from the PlayStore, complete your profile, and you’re done. Our team of experts will conduct a quick verification and approval process and, if you’re eligible, credit the loan amount in your bank account within a very short period. For answers to all your questions, fill up our “Contact Us” form or email [email protected]. You can also give us a call at 080-44292200.

Well, there is just one thing left to say now - Sayonara Scammers!