Many people love to borrow loans to meet and handle their emergency issues and financial crises. Personal loans are one of the most common and popular loans which can be utilized for several purposes like weddings, urgent need of money, debt consolidation or planning a grand wedding party etc. These days loan scams or fraud have become the latest headlines on a day-to-day basis. Loan fraud happens when the individual provides false details to his/her lender or the banking institution for getting the loan. Personal loan fraud is very popular these days because of low documentation work and less verification process. If you want a personal loan in your area like “personal loan in Noida,” then you must provide your correct information. 

In most cases of loan fraud, lenders offer the loans on the trust of the borrower without undergoing intense verification and detailed checking of the person. As per the latest record of the previous year,  more than 9000 cases have been registered regarding loan fraud, with an estimated cost of more than 60,000 crores. 

In most cases, victims protect themselves in various ways. 

Top Ways to Avoid Personal Loan Fraud

If you are stuck in any personal loan fraud like forgery, false loans, pay-in-advance fraud, false documentation and identity fraud, then you must want to recover from it. There are various steps to overcome them:

Undergo the Verification Process for Your Lender 

If you have been engulfed in any loan scam, then you need to overcome them. First of all, you should verify whether your lender is RBI-authorised or not. You can get the help of the RBI or check online for the legitimation of the bank or your lender. You should get the contact details of your lender and search for testimonials and complaints from your previous clients. You should undergo an extreme verification process and check whether the details on the website are up to date, enough to be considered valid or not. 

Authenticate All Your Loan Documentation 

If you are facing personal loan fraud issues, try to get your loan documents verified as soon as possible. You need to check these things:

• Any loan-related bond/agreement to ensure the terms and conditions they have provided
• While taking a loan, the borrower or the individual must adhere to the guidelines related to the rate of interest, repayment plans, costs and other things. 
• If any issue persists, you should contact your bank/financial agency or lender for clarification of your issue. 
• You should confirm that you have provided all the details very correctly so that you can deny or defend your loan agreement deals with your bank or the lender in case of any type of fraud. 

Verification of Personal Data 

• To avoid fraud in personal loans, you should verify your personal data correctly so that you can provide every bit of your information correctly. 
• Now, get your identity verified by the lender or RBI-authorised agency/institution
• Next thing, as a borrower you should be aware of providing crucial data like password, PIN of your credit/debit card, or bank’s private data. 
• It may be possible that illegal persons and fraudsters may use this information to deceive you and to benefit from your provided information. 

Don’t Agree to Up-front Costs 

• Be very aware of the actions and demands of your lenders/banking institution for up-front costs/payments. It may be their approach to do illegal action for loan scamming procedures. 
• Consider it as fraud if the lender asks for any amount other than the processing fee. 
• Be aware of the lenders of the banking institution who promise to give you a loan on bad credit and guarantee quick approval. This may sound very awesome deal but it may damage your financial status and get you in trouble. You can check personal loan interest rates in your area on the web. For instance: The interest rate for personal loans in Noida, Delhi, Lucknow etc. 

Don’t Agree for High-Pressure Tactics 

• There may be various moments when borrowers are pressurised by the banks or lender’s side with high-pressure tactics. For instance: you must pay this amount, otherwise, your details will be seized or an asset will be impounded by RBI. 
• To stay away from these fraudsters, you need to read the entire terms and conditions of your lender and banking authority. 
• Don’t sign any paper and don’t provide any information which is not meant for the loan. The borrower should check every detail whether the information asked is liable to be provided or not. You can consult RBI or any expert for the same. 

Summary 

Taking a personal loan is easy but facing a loan scam is very troublesome. Try to get rid of loan scams or fraudsters by following some things: verification, authentication of loan approval, checking every detail, and not providing PIN, CVV or any crucial information to lenders.