Measures To Prevent Loan Scams And Frauds

Often personal finances might not be sufficient enough to start a new business. In such a case, you often have to rely on other external sources of finance to move out on your venture. Some of the most common sources of funds include friends and family, banks loans, venture capital etc. However, if you are unable to manage finance from any of these sources, you might want to get your source of finance elsewhere. Unfortunately, currently there are many scams in the market. They tempt the business owners in availing loans for starting their business. Ultimately, it turns out to be a great trap at the end.

Going By Advertisements:

There are many a time when you will find advertisements in TV, newspapers or websites. They offer a toll free numbers where the interested customers can call. You might have thought of making such calls to meet your financial requirements. If you make a call, there will be a loan official who will take your credit application directly over the phone or send you papers to fill them up. In any way, you are required to submit some crucial information ranging from your financial status, your employment records, your bank account, your social security number and even your credit card details.

Loan Approval:

The process of approval of loan takes step by step. This is applicable even in case of scams. When you apply for such loans and submit your information, you will be informed after few days about your eon loans approval. They will also inform that you will receive the money after submitting a mandatory fee. This is generally not the case with a reliable institution. The mandatory fee that they ask for is required immediately for covering the first loan payment or for the purpose of insurance. Different companies label it differently.

Forget The Loan:

Once you have paid the mandatory fee, which can even be an advance up to three months, you will never receive your loan. In addition to that, it also implies that your financial losses will never be covered. This is not the end. There are high chances that you are the victim of identity theft, especially when you have provided the credit card details or bank account details. This identity can be used by the scammers for carrying out transactions from your account. Therefore, if you ever fall prey to such scams, make sure that you inform the bank immediately.

Loan fraud is quite common in the recent years. Therefore, while availing a loan, it is extremely important that you go for a reliable institution. Moreover, you should also try to avoid any kinds of ads that come in various places without any valid evidence. You should be careful when any lender is asking a deposit fee from you because this is the first indication of fraud. Such scammers never provide any location information or you will never find any reviews about them. These are few of the signs by means of which you can prevent yourself from the threat of scams.

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