Do you accept the fact that unexpected financial needs can arise at any point in life in the current fast-paced world. Long gone are the days when individuals actually used to rely on their friends or siblings to fulfil such needs. Nowadays, a personal loan is the key that unlocks such possibilities!
These loans, which can be availed via Non-Banking Financial Companies and banks, are designed to fulfil personal needs during tough times and are a pretty tempting solution. However, with the increasing demand for quick and easy credit, one needs to watch out for scammers as well.
In this blog, we at Stashfin will equip you with the right knowledge to identify and avoid loan scams in India.
Understanding Personal Loans and the Rise of Scams
As the term suggests, it is a financially easy-to-avail facility that offers potential borrowers a lump sum of money for various personal purposes. Unlike your auto or home insurance loan, these loans don’t even require collateral and are generally granted on the basis of your creditworthiness.
(Tip: Always use a Personal Loan Emi Calculator before availing this facility.)
However, such an easy procedure to avail of this facility has also paved a path for the scammers on a round-the-clock hunt for your hard-earned money. They tend to exploit the urgency of financial needs as well as the lack of financial literacy among some borrowers in our country.
Top 5 indicators to look out for Personal loans frauds
From directly asking for fees upfront to lucrative with limited period offers, here are the top 5 indicators to look out for frauds:
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Assured Approval along with Dicey rate of interests
“Sir, we assure you that your loan will be approved”. Stay away from people who tell you this regardless of your credit score. Moreover, along with this, even if they offer an unrealistic rate of interest, they understand it as their trick to lure borrowers in order to scam them later.
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Limited Time Offers
You’ll often encounter scammers who keep telling you to make the final call before the offer ends. They want to create a sense of urgency by pressuring you! Forget them, and take your time to research and compare loan options before making any financial decisions.
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Asking fees upfront
If you opt for a legitimate lender like Stashfin, we process your application smoothly before charging any fees. However, if any platform demands upfront processing fees, security deposits, or anything else even before the Online Personal Loan approval, consider it a 100% scam.
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Lack of genuine presence
If your lender is genuine, it will have a clear and transparent online presence. A physical address, customer testimonials, and, most importantly, registration with the Reserve Bank of India (RBI) are enough to prove transparency. A major red flag to consider here is unprofessional websites with vague terms and conditions.
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Personal Information
Avoid sharing your personal information at all costs. Be cautious if a lender requires sensitive information, like bank account details or passwords, over unsecured channels. Legitimate lenders follow a systematic procedure for handling potential borrowers’ sensitive data.
Conclusion
All in all, staying alert and vigilant at all times is of utmost importance when navigating personal loan emi calculator offerings to avoid falling victim to scams. Moreover, shake hands with us and safeguard yourself against loan scams.
Stashfin is a leading loan platform that offers potential borrowers who need financial assistance. You can download our application from the Play Store or App Store or even explore our website.