India is a fast-growing country. In the last few years, we have seen unprecedented growth. With this massive growth, multiple loan scams have also increased significantly. In this blog, we will talk about some of the popular scams, the reasons behind these scams, and ways to avoid them.
Once you understand the tricks of these frauds, you will instantly know when something will likely happen to you. Choose a loan company very carefully. Understand different aspects and then find the best and most authentic one. Check a finance DSA app that can help you learn about these valuable aspects.
Reasons Behind So Many Loan Scams in India
There are different loan options in India. Finding the right one is difficult because multiple ones are scams among them. There are different reasons behind these loan scams-
- In India, financial literacy is still at an amateur level. People are unaware of the legitimacy of loan apps and other frauds.
- Loans are in demand in this country. As so many people are looking for loans, mistakes can happen while finding a loan company.
- Modern loan companies are offering online services. People who are not comfortable with technology will find it difficult to check the authenticity.
- Although RBI oversees all the loan companies. Some illegal apps are there that have no connection with the RBI.
- Finally, data breaches could be possible reasons behind these rising scams in our country.
There must be some other reasons behind these scams. Contact with an expert to learn more about them in detail.
Some of the Common Loan Scams in This Country
After learning the basics, it is time to learn about a few loan scams in India. Understand the common factors and try to avoid them as much as possible. You will find the same pattern everywhere with some tiny differences.
- SMS and Email from a Fake Loan Officer
Have you recently got an SMS or mail from a loan officer? In most cases, this is a possible fraud. In this situation, they will send you a link as a trap. These links are known for phishing links. Once you click on them, your online data will be compromised.
Another hugely common method is getting calls regarding processing fees. In this situation, they will pose themselves as bank employees and push for the payment as soon as possible. If you hurry, you might lose money. Better to have some patience, authenticate, and then take the decision.
There are fraud apps present in the app store that are similar to actual loan companies. At first glance, you can’t distinguish between them. Once you download them, it will receive all the important information about you and use them against you. Then, you have to either pay them or they will harass you for long.
Are you familiar with predatory loans? Some loan companies will offer you loans, but the rate of interest will be sky-high. Once you take their money, there is no way out. Many people have gone through this situation. If you are currently facing a similar situation, it is better to consult with an expert.
There are many more reasons behind this issue. Talk to a loan agent who can help you guide you through these matters.
How Can We Avoid These Loan Scams?
The following aspects will help you neglect loan scams and protect yourself.
Always check the lender’s background before getting a loan. If you don’t know much about the company, better to avoid it.
Sometimes, you will get offers from banks and loan companies that are too good to refuse. In most cases, these are frauds. Unless you are totally sure, don’t click on any links.
- Upfront Fees Are Surely a Scam
Try not to pay any upfront fee to the loan company. If you take the example of any loan company, you will learn that these companies deduct the processing fee from the loan.
- Check all The Details About the Loan
Go to the official website of the loan company. Read everything in detail. Check the processing fee and all. Then, only you can understand the full scenario.
Consult with experts and clear your doubts before having any loan in India.