How to spot a fake loan
When shopping around for a personal loan, it is wise to be conscious of any potential scammers that may try and offer you a deal that sounds too good to be true.
Though a loan may look legitimate from a first glance, there are various tell-tale signs to watch out for to spot a fraudulent loan.
When applying for a loan, be wary if your lender:
β does not evaluate your credit report before approving your loan
β calls or emails you to advise that you are a candidate for a loan
β asks for an initial fee to be wired to a local or international bank account
β offers a low-interest rate
β approves an amount that is higher than you require or applied for
β emails you from a personal email address (i.e., hotmail or gmail)
β sends correspondence using an email address where the company name is misspelt
β gives you an immediate deadline to accept the loan
β has not provided a legitimate address
It is essential to ensure the company you are dealing with is legitimate. Find their number from an independent source and then call them. Never call a number provided in an email as the scam artist may be impersonating a legitimate institution.
To be more adept at identifying a fraudulent loan and to avoid being scammed, never solely rely on the advice of a lender. It is always better to do independent research before you finalise your decision.