Business News: How to avoid getting scammed with fake loan advertisements? Everything you need to know

25 Jul, 2023 Author: Tarun Kohli

Nowadays, banks have made the loan-granting process simpler. Consequently, there has been a rapid rise in the number of people taking out loans. People have started using loans to cover a variety of expenses, including the cost of a house or piece of land, vehicles, education, and vacation. In order to draw in more and more borrowers for loans, banks also conduct a variety of marketing. However, in addition to banks, there are several other applications and businesses that publish false advertisements. Additionally, they commit financial fraud with the clients by luring them into a debt trap.

How to not get scammed by loan fraudsters

Banks require a variety of documents for granting a loan, but these false adverts do not, therefore individuals are drawn to them more. These fraudsters also include hidden fees and terms in such loans, which they disclose after accepting the loan.

Follow these tips to not get lured by such loan scams

You should not always open the message or email that arrives on social media.
Check it first whenever you apply for a loan. Only then should you apply for the loan.
Because no financial institution or bank requests personal information from you before making a loan application, you should not provide your PAN or Aadhaar card information first.
If you are a victim of forgery, you should immediately report it to the local police station.
You can also file a complaint by going to the RBI's SACHET site at https://sachet.rbi.org.in/.