In a loan scam, a fraudster scams individuals with the false hope that they can get a loan they desire quickly and easily.
Loan scamsters exploit the unmet need for credit and target vulnerable borrowers by offering supposedly no-strings-attached credit.
Red Flags To Avoid A Loan Scam:
The lender’s organisation is not registered with Reserve Bank of India and is not associated with any known bank or NBFC.
The loan app is unverified on the app store, does not reveal details of the loan terms and conditions, or does not check your credit report before approval of the loan.
The lender is not registered, does not have a physical office address, or a legitimate website.
A loan fee is demanded upfront before disbursing the loan.
No credit verification is done and it is communicated that the loan is credit free.
The lender will offer a very low rate of interest and it is valid only for a limited period of time.
How To Stay Away From Loan Scams?
Never share your card details to anyone via phone, email, or other means.
Always evaluate the lender’s physical address and the website to know their credibility.
Do not share your OTP or other personal information with anyone. Platforms like PhonePe, Paytm or Google Pay never ask for such confidential or personal details
Understand the loan offer because scams will always offer something suspiciously beneficial.