A 33-year-old man in Rajkot was cheated of ₹8.85 lakh by a man who promised loan approvals. After getting loan approval messages on WhatsApp, he transferred ₹9.35 lakh in the form of a processing fee and login charge. Later, no loan money was given, and he returned only ₹50,000, thus duping the man of ₹8.85 lakh, reported The Times of India.
This is quite a sad state of affairs where a gullible loan seeker was stripped of whatever little money he had, throwing him into a more vulnerable state.
Each financial crime teaches us some money lessons, and here we try to cull out some learnings for those who are looking for a personal loan or some other form of credit.
Money lessons to learn from
1. Processing fee: Almost all lenders charge a processing fee, and this is the reason fraudsters manage to dupe borrowers on the pretext of a charge which is legitimate. But one must understand that this fee is not taken up front. It is deducted from the loan proceeds.
2. Commission: Some fake loan providers try to charge a ‘commission’, which is another name for a bribe. It is a strict no-no. One should stay away from these agents. When there are already plenty of loan providers in the market, it is not recommended to pay someone a commission for a loan.
3. Communication from bank: In this case, borrowers trusted the fake agent because he received messages on WhatsApp stating that the loan was approved. However, all bank communication is sent in text, and the bank’s name is clearly explicit in the message. It is never sent from an individual’s phone number, but instead from the company’s phone.
So, one should never trust a message or any form of communication when it is sent from an individual’s number.
4. Loan disbursal: Also, the personal loan disbursal does not take a long time. It happens on the same day. When someone tries to tell you that the bank will take days or weeks to disburse the money after the loan is approved, subject to payment of a processing fee or a login fee, he is simply trying to fleece you.
5. Instant loans: There are plenty of options to procure instant loans from banks and fintech platforms alike. After you submit your documents, the loan is disbursed instantly. Those platforms are better than approaching through an agent who may turn out to be a fraud.
Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards, and credit scores. Mint does not promote or encourage taking credit as it comes with a set of risks, such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
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