scorecardresearch

Dos and Dont’s to stay safe from instant personal loan scams

With the COVID-19 crisis, scamsters have been cheating people in various ways, including via instant personal loans. Experts say such scams can be detected and avoided if people stay vigilant against tell-tale signs.

Dos and Dont’s to stay safe from instant personal loan scams
Note that genuine lenders will validate the contact information (email and phone number) provided by you via OTPs and disclose fees, interest and late charges before any loan is disbursed.

With the rise in technology and digital transactions, all kinds of related frauds are on the rise today. Hence, experts say it’s important for everyone to know how to protect themselves from frauds and scams.

Personal loans have always been the first preference of all borrowers in case of an emergency and after the unprecedented pandemic, more and more families were pushed into financial crisis. The instant personal loans (PL) are available at a short notice. Hence, in scenarios of dire financial need, more people fall prey to scams.

With the COVID-19 crisis, scamsters have been cheating people in various ways, including via instant personal loans. Experts say such scams can be detected and avoided if people stay vigilant against tell-tale signs. For instance, no documentation and guaranteed approval loans, demands for advance payments are some of the things which should be avoided.

Gaurav Jalan, CEO and Founder of, mPokket says, “The best way to safeguard oneself is to never respond to emails, messages and calls from unknown persons or organisations. If one is unsure and opens an email or message, do not click on any links sent. Also, never download or open any attachments, which could be malware or a Trojan horse.”

Here are some do’s and don’ts one should keep in mind;

Experts say users should keep in mind that legitimate institutions, agencies and companies do not seek sensitive information via pop-up screens or other digital modes. Hence, if someone is doing so, it is only to swindle people. Jalan, says “To red-flag and effectively stop such unwanted messages and emails, phishing filters can be installed in the browser and mail inbox.”

Moreover, note that genuine lenders will validate the contact information (email and phone number) provided by you via OTPs and disclose fees, interest and late charges before any loan is disbursed. Besides, they will email loan contracts with all the terms and conditions. Additionally, genuine lenders won’t ask for any advance payment before disbursing the loan.

Jalan, says “Don’t forget that precautionary measures are not infallible and must be backed by common sense to avoid fraud. Accordingly, never respond or reach out to those offering dodgy instant personal loans – online or offline.”

Having said that, note that there are legitimate lenders of instant personal loans. These entities value the safety and security of their apps and sites to safeguard customer data as well as their reputation in the instant personal loan business. Experts say personal loans through such companies are devoid of scamming and other forms of cybercrime even as they meet the urgent needs of customers.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 09-03-2021 at 16:34 IST