There are many needs we have in life and while you would avoid to be under debt ever in your life, many of us don’t have a choice. We all have not been born with a silver spoon like Richie Rich, the fictional character and may other real life ones. C’mon you know who!!!
So we have to work our way through life, struggle and save to meet our needs. And while you may not have a whole lot of money, Iam sure you have dreams and aspirations of comfort if not luxury. Even otherwise there might be an emergency which needs urgent funds. It is at these times that loans come to your aid. P2P Lenders, Banks and financial institutions extend the facility of Personal Loans to meet any need.
What makes a Personal Loan unique is that it is unsecured without need for a collateral or property. This is very different to a home loan, mortgage loan or a vehicle loan where something you own is security against default. The other good thing is that you need not specify how you will use the money unlike loans of other kinds. So you can use the funds for any reason under the sun from a vacation, to buying clothes, meeting wedding expenses or even building a watchtower for the Justice league…like Batman does with the funds from Wayne Industries!!!
Sometimes it can be for a medical emergency or treatment of an ailment. Or it could be an expensive procedure. You never know what life can throw up. Whatever be the case, when you need a loan, it is natural to explore all avenues and every means. Cases like an emergency might also mean that the loan is required urgently. And in your hurry, it might be tempting to take up an unscrupulous offer because there is no dearth of con-men….whatever the area.
We thought it best to warn you about the games in play and how you can protect yourself. When it is about finance and money, it is best to keep your distance from deals that are too good to be true. The second rule is to always do it by the book or there is a real chance you might end up as the ‘Bakra of Wall Street’. Be sure we are not talking about the banks/NBFCs themselves or most legitimate/authorized agents here.
- The ‘advance’ approval: One of the common cons pulled by shady operators is to ask for an advance from a loan seeker. So the common pitch you will get is that they will ensure an approval if the ‘insurance’ or ‘processing fee’ is paid in advance to them. They assure ‘an offer you can’t refuse’ which is obviously an eyewash because no bank will ask for any fee in advance without the approval being granted. So beware and do not fall for a person or a sweet voice on a call which promises you this.
- The ‘Docu-mail’: This happened in a case that we recently got to know. An ‘agency’, which the loan seeker did not care to verify, called someone and offered a loan at a very good interest rate. It was a great offer which the customer accepted and the agency came over for document collection. Now during collection they asked for originals which the customer handed over without thought. Once this was done the customer started getting calls blackmailing him for the documents!!! Now give me a break…This is the internet age. We check fb 20 times a day. How much does it take to check the claims of an ‘agency’?
- The ‘multi-banker’: Now this is not so much a fraud as it is a white error. Some legitimate agencies who actually work with multiple banks agree to help you get a loan. But to multiply your chances of getting a loan, especially if you have a weaker case, they submit your application to many banks. Mind you this is your application, not a mere request. As I said this is not ‘illegal’ in any sense unless you expressly forbid it. What happens in this case is that when you apply with multiple banks and get rejections from a few, your central credit score called CIBIL score plummets, downgrading your credit-worthiness. This will greatly affect you when you ask for ay type of credit the next time. So avoid this at all costs. You have options.
- The ‘blank-check’: Some people have a novel way of going about their job. Because like Lex Luthor their evil is camouflaged by good. They will approach you and extend you a legitimate loan offer. Now as part of the final checklist, banks generally ask you to provide them with a blank cheque in their name which they can use in an event you default on the loan. Our supervillains will ask you to give them the blank cheque/s without informing you to name the bank. This blank cheque is used obviously to drain you later on. Beware and check the documentation like on this page.
- The ‘visiting-fees’: This is something we have come across which is actually quite novel. These wannabe Ocean’s Eleven come in after a personal loan has been approved through their agency to collect the documents. After collecting the documents they ask for a small amount as their ‘collection fee’ for coming and getting the documents. Note that no bank charges such a fee from their client nor does a self-respecting facilitator. These individual clowns play on the urgency and need of the loan seeker to make a quick buck. So again be careful and work only with those who can ensure complete transparency.
As we said, be on the vigil and whenever in need of a Personal Loan, give us a shout. We will not only protect you from these scams but also offer service you will want to pack home and use for every other product.