3 MinsMar 13, 2023
In recent years, a personal loan has become a popular financial product for many people in India. However, as with any financial product, there are always risks of fraud and scams. In this blog, we'll explore how to identify and avoid personal loan fraud in India.
Warning signs of loan frauds in India
Unsolicited calls or messages: Scammers may try to lure you with pre-approved loans or instant approvals without you having to apply. Be wary of any offers that seem too good to be true.
No credit checks: Legitimate lenders will always perform credit checks to assess your personal loan eligibility. If a lender does not conduct a credit check or asks for an upfront payment to run a credit check, it could be a sign of a scam.
Upfront fees: If a lender asks you to pay an upfront fee to process the loan, it is a red flag. Legitimate lenders typically charge a processing fee, which is deducted from the loan amount, not paid upfront.
Unsecured websites: Always verify that the website you are applying on is secure and has a valid SSL certificate. Look for the lock icon in the address bar or "https" in the URL.
Pressure to act quickly: Scammers will try to pressure you into acting quickly before you have time to research or consider the loan offer. Do not be rushed into making a decision. Take your time to research and compare offers.
Also Read: [Choose a personal loan interest rate that fits your pocket]
What can you do to avoid being a scam victim?
Always research the lender: Do your due diligence and research the lender before applying for a loan. Check for their credibility and reputation online. Look for reviews, ratings and customer feedback.
Check the interest rates and fees: Always check and compare the interest rates and fees being offered by various lenders before making a final decision. This will help you avoid high interest rates and hidden charges.
Verify the lender's registration: All lenders in India are required to be registered with the Reserve Bank of India (RBI). Verify their registration and credentials with the RBI before applying for a loan.
Read the loan agreement carefully: Always read the loan agreement carefully and understand the terms and conditions before signing it. Do not sign anything that you do not understand. If you have any questions or concerns, ask the lender to clarify them.
Report fraud: If you suspect that you have been a victim of loan fraud, report it immediately to the police and the RBI. This will help prevent others from falling victim to the same scam.
Benefits of Axis Bank Personal Loans
- Secure platform: Axis Bank provides a secure platform for customers to apply for an instant Personal Loan online through their website and mobile app. This helps prevent fraud and protects customers' personal and financial information.
- Verification checks: Axis Bank conducts rigorous verification checks before approving a loan application. This includes verifying your identity, income and credit history.
- Educating customers: Axis Bank educates its customers through various communication channels about the warning signs of loan fraud and how to avoid them. This helps raise awareness about the issue and empowers customers to protect themselves from scams.
Personal loan fraud is a real threat in India, but with some caution and due diligence, it can be avoided. Always do your research, verify the lender's registration and read the loan agreement carefully before signing it. Remember, if something seems too good to be true, it probably isn’t true. Avail of personal loans from a trusted lender like Axis Bank from the comfort of your home.
You can also find out more about Axis Bank’s personal loan emi calculator and the rate of interest on personal loans.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.