Illegal and unregistered loan applications have increased over the past two years as con artists attempt to defraud individuals by promising them money.
These applications often operate by giving money to individuals in need, extorting additional money from them, and then harassing the victims.
The RBI was forced to create a white list of legitimate applications due to the exponential growth in fraudulent loan applications. Here are a few methods for avoiding fraud.
Bank always confirm with the RBI if a bank or NBFC is authorised to conduct business. On the website of the central bank, you may verify it.
Fraudulent loan app firms sometimes lack a website. Any app without a website needs to be taken with a grain of salt.
Scammers frequently send you messages with links in them that offer you loans. Such emails should not be opened, and you should never click the links.
Do not proceed with the transaction if the lender is not properly adhering to the KYC requirements while disbursing a loan.
You should be warned that con artists are more interested in your personal information and may request card numbers, CVVs, and other information.
Most of the time, fraudulent loan applications omit to include crucial information from the loan agreement. Avoid such lenders at all costs.