A personal loan that you have taken to consolidate your existing loans or plan any big purchase might land you in shocking peril if you come to know that your account has been hacked. Your dreams shattered, your big purchase plan taken a slump and above all, your financial accounts emptied- you will be in utter despair cracking for a solution. Taking necessary steps and understanding the lender beforehand will protect you from these kinds of frauds. Knowing subtle differences between a genuine lender and a fake lender can nullify your chances of falling prey to fraudsters. Take a note of the following points if you are planning to take a personal loan this time to ensure that you are in safe hands.
A genuine lender checks credit scores and repayment capacity:
No lender will extend loan without checking the repayment capacity of the borrower. As an assurance against the same, they check the credit scores, number of loans you are paying, your monthly income and other financial documents. If you have good credit scores and strong credit history, you will be eligible for better interest rates and indicate your repayment capacity. These are the most crucial points that a potential lender will consider. If your lender seems to be indifferent to checking these aspects, then you will have to suspect his legitimacy.
Get an understanding of various fees that the lenders charge:
Most of the personal loans carry with them some kind of fees. Some lenders charge a fee called origination fee which the borrower has to pay before the commencement of loan. If your lender charges the fees, check with him the process involved like when to pay the fees and whether it can be paid in small amounts. Some lenders charge processing fees to allow you apply for a loan. Others have a practice of charging of upfront fees which also has to be paid before initialising the loan and sometimes, taking advantage of the ignorance of customers they charge hefty amount. This also is a case of suspicion as the underlying motto in these scenarios is to loot out big money and escape later on. If you fail to realise this, you will be in a big trap.
Don’t fall to high pressure convincing:
It is common in business to convince customers with attractive offers. The interest that the lenders charge is the profit that they get. The more interest they levy on you, the more they make money on it. The messages and emails that you get about low interest rates is just to convince you to take a loan. Once you show at least a slight interest they take it granted and start following up with you. This can be sometimes frustrating, and you will be forced to take the loan. Understand that too much of convincing and over projected tactics are signs of upcoming personal loan fraud that you might face.