7 Ways to Identify Personal Loan Scams

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Planning your finances efficiently is one of the most critical steps in order to prepare yourself to meet your financial commitments effectively and also be ready for any financial emergency that comes your way. Having an emergency fund is a must in order to take care of any unexpected expenditures that may come up,but most of the times your savings alone are not sufficient to take care of the necessary expenses at hand. Even if you have enough money with you in the form of savings, do you want to use it up in one go and remain exposed to any future exigency without any safety cover? In such a situation, Applying forPersonal Loans is the decision that you can take.

About Personal Loans

Personal Loans are unsecured loans that are offered by various lending institutions in the market. These loans can be used for any purpose that you may have such as a wedding, a vacation, further education, and so on. There is no requirement to furnish any details with the lender regarding the final usage of the money, the rate of interest against Personal Loans start from 10.99% p.a. with the repayment tenure going up to 60 months. As such they offer a cheaper and flexible funding alternative as compared to Credit Cards.

With the rising popularity of Personal Loans,lenders have simplified the process of applying for Personal Loans. Neither you need to follow a time-consuming process, nor do you have to manage a long list of Personal Loan documents, you can easily apply using the online application process. You can make an application for a Personal Loan using the website of the particular lender or through any of the online loan marketplaces. You just need to fill in your essential details along with some financial information,and if your profile meets their eligibility criterion, the loan amount would be directly credited to your account within a few hours of signing the loan agreement.

Personal Loan Scams

Technological developments have significantly altered the way of working of the financial sector, making everything more customer friendly but this has also given rise to fraudsters and scamsters, who try to fleece people of their money by offering some unrealistic offerings. These individuals act as thorough professionals and will invite you into revealing your crucial financial information or will ask you to pay some money upfrontand will, later on, use this information to cause you significant losses.

One of the most common techniques these scamsters use to fleece you is through the offering of Personal Loan products at extremely low-interest rates. As you are desperate for money, you tend to trust their unrealistic promises that are too good to be true. Believingin their false promises ruins your personal finances further and pushes you into a financial quagmire.

How to identify and avoid Personal Loan scams?

In the wake of rising instances of Personal Loan scams, it is essential for you to be able to understand various signs that indicate towards a PersonalLoan scam so that you can avoid falling victim to the same and save yourself from financial and personal losses. Here are seven vital signs that indicate towards a personal loan scam for which you must keep an eye out for:

  1. No credit checks required

If a personal loan offer that you have received from a lender does not require any credit check or the lender is willing to give you a Personal Loan at extremely low-interest rates despite a poor credit score. This is a clear indicator of a scam in the making,and you need to steer clear of it.

  1. Never heard about the lender

If the offer you have received from a lender that is really lucrative, but you have never heard about the particular lender or the lender has a name similar to a reputed institution, then you must exercise due diligence as it has all the makings of a scam.

  1. Need to pay upfront fees

If the lender requires you to pay a significant fee as an advance or as a processing fee, then you have to be watchful. In most cases, lenders deduct the processing fees from the loan amount itself,and you only need to pay some minimal charges.

  1. No website

If the lender does not have a secure website (https or a padlock symbol) or does not have a website at all, then it indicates that the lender should not be trusted, and it is more likely a scam to cheat you.

  1. Poor language and grammar

If the emails that you receive are poorly written with lots of grammatical mistakes, then it is highly likely that it has been drafted by a scamster who is not worried about the minute details which are somewhatcrucial for a reputed financial institute.

  1. The email was delivered to the spam folder

If the emails from the lender are going straight to the spam folder and are originating from a private email address, then you should not trust any information supplied through such emails and should not divulge any financial details.

  1. You are given the same day deadline

Sometimes the representative of the said lender would push you to make an instant decision citing it to be the last date to avail the discounted offer. You must not fall into the trap and should avoid giving any information or money against such offerings.

With the rising instances of Personal Loan scams, it has become very crucial for you to exercise due diligence and do the necessary research before divulging any financial details or giving any money against any offer that looks too good to be true.

Also Read: Does Changing the Purpose of My Personal Loan Make Any Impact?

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.