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Post Your Complaints On IndianMoney - Personal Loan Scam Research Team | Posted On Wednesday, November 21,2018, 04:04 PM

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Post Your Complaints On IndianMoney - Personal Loan Scam



A personal loan is a type of unsecured loan and helps meet your financial needs. You don’t usually need to pledge any security or collateral, while availing a personal loan and your lender provides you the flexibility to use the funds any way you like. It can serve as a solution for managing travel costs and wedding expenses, as well as the expenses of a medical emergency, home renovation, debt consolidation among others

Want to know more on personal loan? We at will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

Is a Personal Loan right for you?

  • Exhaust all your options: Availing a personal loan can be a good option for meeting emergency expenses or meeting any financial goal. However before availing the loan, you should remember there’s interest charged on the borrowed amounts. Before applying for a personal loan, consider other ways to manage funds like borrowing from relatives or friends.
  • Ask yourself if you can afford it: Carefully evaluate your options before applying for a personal loan. Before applying for the personal loan, evaluate the amount of EMIs by using online calculators. Also consider age before applying for the loan.
  • Offer collateral: If you borrow a secured personal loan, then the loan will be given at a much lower rate of interest. Consider using an asset like car or property as collateral against the loan.
  • Review the amount you need to borrow: Carefully review the amount you need to borrow. Do not borrow more than you require.
  • Consider the loan term: Personal loans generally have a repayment period of 1 to 7 years.

How to avoid a Personal Loan scam?

Described below are ways to avoid personal loan scams:

  • Phishing scams: Among the common loan scams, the most significant is the phishing scam. Fraudsters in phishing scams obtain details of personal or financial information. A key rule that you must follow while applying for a loan online is to confirm if you are on an encrypted page. Look for a padlock to the left of your page’s URL, which should start with “https,” indicating a secure site. If you don’t see one, the site you are on may not be a legitimate one.
  • Advance fee scam: A legitimate lender will never ask for a fee before the processing of loan application. Banks or lenders charge a processing fee, which is deducted from the loan amount.

SEE ALSO:Post Complaints On IndianMoney If You Are Cheated By Insurers

Signs of a Personal Loan scam:

  • No credit check required: A fraudster will not bother to check credit score and will emphasize on knowing personal details.
  • Lender is not registered with the government: To continue in the lending business, lenders are required to register with the Government.
  • You can’t find a physical address: If a lender doesn’t provide a physical address or contact information, then immediately stop contact and do not go ahead with any loan offers. Scammers make it difficult to get in touch at a later point, avoiding any legal action you might want to pursue against them.
  • Advance payment: tricksters might demand advance payment of certain fees in the name of origination fees or processing fees. Remember a legitimate lender will never ask for payment before processing the loan application.
  • Offer expires soon: Scammers come up with limited period offers and ask applicants to make decisions urgently, saying the offer expires soon. Any legitimate lender will offer interest rates after evaluating your credit history.

Is applying for a Personal Loan online safe?

It is safe to apply for loans online. There are various online loan aggregators that can help avail personal loans without any hassles. However applicants might fear falling victim to online fraudsters or cheats and consequently be hesitant to apply for personal loans online.

Applying for online personal loan is safe if the individual is careful. Online fraud websites can be identified in various ways. Make sure a lender’s site is secure by checking the URL. On secure sites the URL starts with “https” and look for a padlock symbol in the address bar on any page that requires you to provide personal information. If this information is missing from the website, then it is unsecure and may be fraudulent. Do not provide any personal information if you come across any such website.

SEE ALSO: What is a Term Insurance Plan?

What to look for when searching for a lender online?

While applying for loans online, make sure to find out the addresses of the lender or the company mentioned on the website. Fraud websites sometimes have addresses which are vacant lots or buildings that normally do not operate businesses.

It is important to have complete information regarding the lender you are dealing with. Do an extensive Google search using the lenders name and key terms associated with a negative personal loan experience.

How to check if a loan company is legitimate?

Before applying for a loan keep in mind the following points to check if the loan company is legitimate:

  • Easy to contact: if you are dealing with a legitimate lender, then he will have a good customer support team that will answer all queries or grievances.
  • Secure website: Look for a little padlock to the left of your address bar to confirm the site is safe. If there is no padlock, the site is not secure.
  • Address:  A legitimate lender should also clearly display a physical location and its state licensing information online.
  • Credit check: the lender will go through your credit score and will make an enquiry to see your previous repayments via credit information report, CIR.
  • Clear terms on loans: A legitimate lender will provide transparency in the contract clearly stating how much money is borrowed, the various fees, interest rate on the amount borrowed, the monthly EMIs and the final estimate of your loan.

What if you’ve been scammed?

There are various tricksters who can trap you into payments or trick you into providing personal information like social security number, bank account numbers or passwords. The scammers can then use this information to steal money from the bank account. If you are scammed, then look out to reach the lender. If the lender does not respond, then reach out to a judicial authority that will help you in the resolution of the matter.

SEE ALSO:Post complaints on IndianMoney if you are cheated by bank

Where to find the best personal loans online:

You can make a Google search using the keywords best personal loans online. Once the search is made, you will have a list of online aggregators and lenders who will provide loans at reasonable interest rates. Carefully compare the rates provided by various lenders and choose the ones according to the terms, that best suit your requirements. Take into account customer reviews before finalising the loan.

How can help when you are cheated while applying for a Personal Loan?

If you are cheated in any way by personal loan lenders or online aggregators then we can help you in the following ways:

  • IndianMoney advises you to file a complaint with the lender and get an acknowledgement.
  • Wait for 30 days and if the lender doesn’t respond, approach the banking ombudsman.
  • The banking ombudsman looks for an amicable settlement between the lender and the complainant.
  • IndianMoney tells if you are not happy with the verdict, try to appeal. The ombudsman is generally fair and always looks to resolve the issue.

Are you cheated by mis-selling? Lodge a complaint on which is a free online consumer complaints portal, which registers consumer complaints online and helps resolve them. If you have been cheated by Personal Loan or if you do not receive any response from them, you can post your complaint on complaints portal

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