Tips To Protect Yourself From Personal Loan Scams

Outlook Money


With the proliferation of online lending platforms, personal loan scams have also become very common in India. Scamsters are employing various tactics to deceive credit seekers, including asking for security deposit in lieu of extending a personal loan.


First Clues

Personal loan scamsters often lure victims with promises of quick and easy funds, and offer unrealistic rates of interest. If they are asking for upfront fees, and guarantee approvals without checks on your credit history, then one should understand that it is most probably a scam.


Basic Precautions

Avoid disclosing personal information or giving security deposits or any money upfront to lenders, as legitimate lenders do not typically ask for such payments.


Research Lenders

Conduct research on the lender’s reputation by seeking customer feedbacks or reviews on online platforms, and also review their websites’ way of disclosing information.


Compare Loan Terms

Never settle for the first loan offer that one gets. Take proper time to compare the rate of interest, terms of the loan, and fees of various lenders, before committing to any loan offer.


Reporting Scams

If you fall victim to a personal loan scam, report it immediately to the National Cyber Crime Portal. One can report it online or dial the National Cyber Crime Helpline for further help and action on the matter.

Compiled by Syed Muskan

Reporting Scams