You badly need a loan like a home loan or a car loan, to buy that dream home or car. Scamsters know this and are always on the prowl to trap innocent people who avail loans from banks.
If you don’t want to be a victim of fraudsters, you need to be on the alert and read newspapers regularly, to understand how these fraudsters trick you out of hard earned money.
How to avoid loan frauds?
1. Do a proper research on the lender
Before availing a loan from any lender, do proper research as there are many fraudulent lenders in the market, who cheat people in the name of providing loans.
Collect the number of the lender from online sources and make sure they are who they claim to be. Take the physical address of the lender, if they say no to giving the address, do not trust them. You can also check the reviews of the lender online. If there are many negative reviews, avoid availing loans from that lender.
2. Never give personal information over the phone
If any lender asks you to provide personal information over the phone, never do so. Genuine lenders never ask for personal information over the phone.
A genuine lender understands that customers won't be comfortable giving personal information over the phone and won't pressurize them to do so. Many fraudulent lenders ask you to provide bank account details and credit card information. You should be very careful about such calls.
3. Stay away from unrealistic guarantees
It is advisable to stay away from the offers which are too good to be true. If the lender is providing very good offers, think twice before entering into the agreement. Most of the time, fraudsters try to cheat innocent people by proving attractive offers.
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4. Load your PC with weapons of defense
To protect yourself from phishing attacks, install anti-virus, anti-malware, and spam protection applications in your mobile and computer. Phishing e-mails on loans are sent by online fraudsters to steal your sensitive and personal information. By installing these applications, you can block all the e-mails and notifications from phishers.
5. Do not pay advance fees
It the lender is asking you to pay advance fees to sanction a loan, kindly stay away from him. No lender will ask you to pay an advance fee before the disbursement of a loan. However, you are required to pay certain fees such as processing fees, documentation, verification fees and so on, but these fees are part of the loan agreement and not through word of mouth.
6. Read the loan agreement carefully before signing it
Go through the loan agreement carefully and clarify if you have any doubts. There are many points that should be included in the loan agreement. It should contain information like the loan amount, annual percentage rate (APR), repayment schedule, default provisions, and any other special conditions. Do not sign the agreement if any important information is missing. It is advisable to take the help of professionals before signing on the dotted line.
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