Personal Loan Scams

personal loan scamsAre you going to apply for a Personal Loan? We all know this popular saying “Haste makes waste”. While applying for a loan, you shouldn’t be in haste. There are multiple companies offering the services of the personal loan but how many of them are a form of personal loan scams? That question makes a silence of a few seconds because you’re going to avail a huge amount and of course, you don’t want any fake company to receive your documents.

Check these five ways to recognize personal loan scams:

  • No credit check required: When it comes to applying for a personal loan then lenders ask for your income proof and credit score. How can a lender sanction you a loan without verifying your credit history? An applicant with a bad credit score can also loan but at a higher interest rate (if the credit score is more than bad then the bank or lender will reject the application). Either visit a reputed lender or before applying for a loan get wise advice from any loan professional.
  • The lender is registered or not: Obviously, a reputed or legal lender will promote his/her services on an official level or via media sources. You will easily find out whether that particular financial company or service in your area is registered or not. We aren’t saying that you shouldn’t step ahead to a new lender but before grabbing services from any new name once research carefully. If any personal company is in your city or state then registration is a must.
  • If a lender asks for direct payment: If we talk about top personal companies, then they charge an origination fee (1% and 8%) but this matters that how and when you pay those fees. We would like to tell you that loan fees are usually paid out of the loan sum which means you no need to give a cheque or direct cash to the lender. Keep in mind that the lender may give this fee another name such as application or processing fee. Simply if any lender asks for a direct payment then better avoid him/her and avail a loan from some renowned company.
  • Navigate to secured websites: Nowadays no one visits any branch or office first every on check about the company’s profile on the internet. If you’re looking for a personal loan and check about that company or lender on the internet, make sure the website from where you’re getting the information is secured. There are two ways to check, first if you see a padlock symbol on the website that indicates the website isn’t secured. One more way, if you open up a site and sees that the website address is without ‘https’.
  • The lender gives you a deadline: If any lender explains about a personal loan with any special offer or deadline then you might avail a loan from the wrong place. Reputed companies generally don’t offer any special offer (banks provide offer but we can easily detect which one is fake and which isn’t. Bank’s offers are genuine). No well-known lender or finance company will pressurize you to apply for a loan or to make a quick decision. Availing a huge amount isn’t a small thing. Of course, you need time to make an accurate decision.

Be informed and avoid getting personal loan scams. Apply safely with Dialabank to avail the best services and rates.

Other Related Articles

  1. How Personal Loan Works
  2. Personal Loan Documents
  3. 6 Reasons why Gold Loan is the best borrowing option?
  4. Advantages of Gold Loan

Read Other Related Articles:

Personal Loan Must Read
Best Personal Loan Portals
3 Best Options for a Personal Loan in India Personal Loan Is Declined
What is Personal Loan Insurance?


I have read the Privacy Policy & Agree to Terms & Conditions and authorize Dialabank & its partner institutions to Call or SMS me with reference to my application.