Unexpected calls, emails, or letters about a loan you didn't request? It is likely a scam. Cybercriminals use every platform to defraud you. If someone pressures you to apply or make a quick decision on a loan offer, take a step back. Reputable lenders have legitimate addresses and professionally designed websites.

What is a Loan Scam?

A loan scam occurs when someone tries to trick you into giving them money by pretending to offer a loan. They might promise easy money and low or no interest, but there is often a hidden catch or no loan at all.

Source: Raju & Forty Thieves

Warning Signs of a Loan Scam

• Genuine lenders don’t ask for fees before approval.
• Real lenders consider your credit score.
• Unrealistic Interest Rates: If it sounds too good to be true, it probably is.
• Pressure Tactics: Scammers rush you to make quick decisions.
• Lack of Transparency: Legitimate lenders clearly explain terms and fees.

How to Protect Yourself?

• In India, check if the lender is registered with the Reserve Bank of India (RBI). Visit the RBI website and check the “All Licensed Banks” section.
• Report incident to the nearest Cybercrime Police Station and National Cyber Crime Reporting Portal https://cybercrime.gov.in/
• Don’t accept the first offer. Research and compare interest rates, fees, and other charges from various lenders. Reputable online financial marketplaces can help.
• Look for independent reviews and ratings. This can give you insights into other borrowers' experiences with the lender.
• Genuine lenders don’t ask for processing fees or security deposits before loan approval.
•  A reputable lender explains all terms, conditions, and fees clearly before you apply. They should also have a dedicated customer service team to answer questions.