How you can detect a fraudulent lender

Your loan application is approved!!!

Your profile is now eligible for a loan of xxxx amount!!!

And the tempting texts go on and on every other day for giving a loan.

Well, getting phone calls, emails, SMSes for loans and loan applications is nothing new for people staying in metro cities especially. Every other day we are getting targeted to such deals.

While some can be genuine ones most of them can merely be a trap to get your documents submitted in order to access your personal information.

Hundreds of apps have also started floating in the market that claims to offer instant loans, no cost EMI loans and others to gain the trust of people. Once you’re caught in the trap, loan scammers spend a lot of time convincing you to get the loan from them.

Here are some of the indications that we have listed below to identify the credibility of the lender

Not evaluating your track records: This clearly means that the lender is not interested what your past records are what is your current record of loans, EMIs etc. A credible lender will always ask for your PAN card number in order to obtain your Credit Score. A good Credit Score highly increases your chances of getting a loan as it assures the lender that you are a reliable borrower and can pay your dues on time and repay their money. Whereas a low Credit Score creates a bad impact on your Financial records and creates just an opposite image of the above stated habits.

Scammers usually look for borrowers who are desperately looking for money and have little or no idea/knowledge on examining the lender

Forcing you to apply for a loan instantly: Scammers usually lure borrowers in names of schemes and offers running and force you to apply for a loan instantly stating that it’s a limited period offer and the offer is about to expire therefore apply now. Do not follow into this trap of force and offers as it could lead you to a loss.

No whereabouts of its online presence: Loan scammers will not have a website, mobile app or any digital presence including Social Media and others. This clearly indicates that they are fake. A reputable lender will always have a secured Website, Mobile App and other Digital presence in order to get more customers and serve each and every customer’s loan purpose through its online or offline channels.

Offline presence: Ensure that the lender you are choosing has a physical office address or a branch address where you can personally visit and get your loan queries resolved. If the lender claims that they do not have any physical presence then you should stay away from them.

Conclusion

There are a lot of reliable companies like Fedfina that offer loan services through their Digital channels and Branch services. If you are someone who has a low Credit Score, do not worry as Fedfina provides Gold Loan without even assessing your Credit Score.

When searching for a good lender, take these starting steps:

• Check for contact information like phone number, email address and physical address on their website
• Check for online reviews of the lender
• Make sure it has a Reserve Bank of India's (RBI's) Non-Banking Financial Company (NBFC) license which allows them to give you that loan