{"id":7216,"date":"2024-01-09T14:46:35","date_gmt":"2024-01-09T14:46:35","guid":{"rendered":"https:\/\/lxme.in\/?p=7216"},"modified":"2025-06-13T06:21:26","modified_gmt":"2025-06-13T06:21:26","slug":"how-to-stay-safe-from-personal-loan-scams-and-frauds","status":"publish","type":"post","link":"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/","title":{"rendered":"How to Stay Safe from Personal Loan Scams and Frauds?"},"content":{"rendered":"\n<p>We have a number of needs in our everyday lives for which we may require financial help. For women, this can mean anything from paying for their child\u2019s education to meeting an emergency healthcare expense. A Personal Loan is a common tool used to meet these unplanned\/emergency needs, but unfortunately, as personal loans have become more popular the number of online loan application frauds has also increased. It\u2019s important for women to exercise caution while taking a loan to avoid scams. Let\u2019s look at some ways we can stay safe from personal loan frauds.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_75 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#What_is_a_Personal_Loan_Scam_and_how_does_it_occur\" >What is a Personal Loan Scam and how does it occur?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#Red_flags_to_Watch_Out_for_to_Avoid_a_Personal_Loan_Scam\" >Red flags to Watch Out for to Avoid a Personal Loan Scam<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#1_Time_Restriction_%E2%80%93\" >1. Time Restriction &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#2_Advance_Payment_%E2%80%93\" >2. Advance Payment &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#3_Unusual_Loan_appwebsite_%E2%80%93\" >3. Unusual Loan app\/website &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#4_No_Background_check_%E2%80%93\" >4. No Background check &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#5_Extreme_promises_%E2%80%93\" >5. Extreme promises &#8211;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#Precautions_you_should_take_to_stay_safe_from_loan_scams\" >Precautions you should take to stay safe from loan scams<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#You_should_confirm_the_office_address_of_the_lender\" >You should confirm the office address of the lender<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#You_should_properly_check_the_lenders_website\" >You should properly check the lender\u2019s website<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#You_should_research_the_claims_made_by_the_lender\" >You should research the claims made by the lender<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#You_shouldnt_input_your_confidential_data_on_a_suspicious_appwebsite\" >You shouldn&#8217;t input your confidential data on a suspicious app\/website<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#You_should_read_all_the_terms_and_conditions_properly\" >You should read all the terms and conditions properly<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#You_shouldnt_make_any_advance_payment_without_a_loan_agreement\" >You shouldn\u2019t make any advance payment without a loan agreement<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#What_to_do_in_case_you_get_trapped_with_a_personal_loan_scam\" >What to do in case you get trapped with a personal loan scam?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#FAQs\" >FAQ\u2019s<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#Can_Personal_loan_scams_be_dangerous\" >Can Personal loan scams be dangerous?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/#What_measures_can_one_take_to_safeguard_their_personal_and_financial_details_when_applying_for_an_online_loan\" >What measures can one take to safeguard their personal and financial details when applying for an online loan?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Personal_Loan_Scam_and_how_does_it_occur\"><\/span><strong>What is a Personal Loan Scam and how does it occur?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Personal Loan Scam\/online loan application fraud is any event where false information\/promises are used to obtain money or private information from a borrower. It can have serious financial consequences. There can be many types of loan scams such as identity fraud, fake loan app fraud, loan renegotiation fraud, etc.<\/p>\n\n\n\n<p>Here\u2019s an example of how a loan scam may occur &#8211;<\/p>\n\n\n\n<p><em>Congratulations Mrs. Geeta Sharma, you have been pre-approved for a personal loan of Rs. 1,00,000 by Company ABC. We request you to click on the link below and transfer Rs. 10,000 to avail this no-cost, interest-free loan today. Offer valid for 24 hours. <\/em><em><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Red_flags_to_Watch_Out_for_to_Avoid_a_Personal_Loan_Scam\"><\/span><strong>Red flags to Watch Out for to Avoid a Personal Loan Scam<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Time_Restriction_%E2%80%93\"><\/span>1. <strong>Time Restriction &#8211; <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Scamsters try to convince customers that an offer is only available for a limited time to create a sense of urgency among borrowers so that they don\u2019t have time to research their claims.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Advance_Payment_%E2%80%93\"><\/span>2. <strong>Advance Payment &#8211; <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If a caller tries to obtain an advance payment or an upfront fee before releasing the loan, it is highly likely that it is a fake loan scam.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Unusual_Loan_appwebsite_%E2%80%93\"><\/span>3. <strong>Unusual Loan app\/website &#8211; <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An unsafe or suspicious app\/website is a way to know if you\u2019re dealing with a personal loan scam.<\/p>\n\n\n\n<ol style=\"list-style-type:1\" class=\"wp-block-list\">\n<li>A genuine website will have a proper domain name as well as professional and grammatically correct content.<\/li>\n\n\n\n<li>The website should have a lock sign in the right corner of the website URL and the URL should begin with \u2018https\u2019 not \u2018http\u2019.<\/li>\n\n\n\n<li>The lender should have a listed website. Check the Company Identification Number (CIN) and details of the company\u2019s registration.<\/li>\n\n\n\n<li>The lender should be associated with a bank or non-banking financial company (NBFC).<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_No_Background_check_%E2%80%93\"><\/span><strong>4. No Background check &#8211; <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>While taking a loan documentation is required and genuine lenders will ask you for documentation before loan processing, it might vary from company to company but it is required such as your credit score, etc. If a lender promises to give you a loan without asking for your credit history, income details etc., it\u2019s likely a fraud.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Extreme_promises_%E2%80%93\"><\/span><strong>5. Extreme promises &#8211; <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Always be suspicious when a lender makes extreme promises. Some examples can be offering a very low interest rate or promising loan approval with no documentation requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Precautions_you_should_take_to_stay_safe_from_loan_scams\"><\/span><strong>Precautions you should take to stay safe from loan scams<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"You_should_confirm_the_office_address_of_the_lender\"><\/span><strong>You should confirm the office address of the lender<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Fraudsters are known to give false contact information. Always verify if the lender has an office address. Your next step should be confirming if the given address is genuine or not.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"You_should_properly_check_the_lenders_website\"><\/span><strong>You should properly check the lender\u2019s website<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Properly check the website of the lender, watch out for any unusual content, and read all the reviews provided by past borrowers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"You_should_research_the_claims_made_by_the_lender\"><\/span><strong>You should research the claims made by the lender<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Always do your own research on the proper process of releasing a loan as well as the current interest rate in the market.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"You_shouldnt_input_your_confidential_data_on_a_suspicious_appwebsite\"><\/span><strong>You shouldn&#8217;t input your confidential data on a suspicious app\/website<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Be very careful before disclosing any personal information including your bank details, aadhaar or PAN details, contact information, passwords, etc. on an unsecure\/ unregulated website.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"You_should_read_all_the_terms_and_conditions_properly\"><\/span><strong>You should read all the terms and conditions properly<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Terms and conditions of a fake loan scam can include hidden charges. Read all documents carefully before proceeding.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"You_shouldnt_make_any_advance_payment_without_a_loan_agreement\"><\/span><strong>You shouldn\u2019t make any advance payment without a loan agreement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Genuine lenders do not charge any upfront payment until the loan is approved, be cautious and do not make any payment on the basis of a verbal discussion.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_to_do_in_case_you_get_trapped_with_a_personal_loan_scam\"><\/span><strong>What to do in case you get trapped with a personal loan scam?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In the event that you get trapped in a personal loan scam, seek legal advice immediately. Register a complaint at your nearest police station or call a cyber-cell helpline. It\u2019s important for women to have access to a secure financial environment so that they can feel safe while availing financial services.<\/p>\n\n\n\n<p>Learn more about <a href=\"https:\/\/lxme.in\/dos-and-donts-of-getting-a-personal-loan\/\"><u>Do&#8217;s and Don\u2019ts of Personal Loan<\/u><\/a><\/p>\n\n\n\n<p>Each woman needs to be aware of the different tricks used by fraudsters and be cautious before providing any personal and sensitive information. Additionally, it is important to only take loans when you need it. Women should plan their spends in advance, save an ideal percentage of their income, and invest according to their goals. In case you end up taking a loan, you should pay your loans on time to ensure your credit score doesn\u2019t get affected.<\/p>\n\n\n\n<p><em>You can safely avail a personal loan with <\/em><a href=\"https:\/\/lxme.onelink.me\/95JV\/loan5\" target=\"_blank\" rel=\"noopener\"><strong><em><u>LXME<\/u><\/em><\/strong><\/a><em>&nbsp;for all your emergency expenses with just 3 steps. Check your eligibility, select loan amount &amp; tenure, upload KYC, verify your bank account, and money will be disbursed to your account!<\/em><em><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQ\u2019s<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1704811378519\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Can_Personal_loan_scams_be_dangerous\"><\/span><strong>Can Personal loan scams be dangerous?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Personal Loan scams are illegal and extremely dangerous. They need to be reported immediately. Your confidential details can be stolen and you can lose a lot of money in such a situation.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1704811396099\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_measures_can_one_take_to_safeguard_their_personal_and_financial_details_when_applying_for_an_online_loan\"><\/span><strong>What measures can one take to safeguard their personal and financial details when applying for an online loan?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>While applying for the loan online make sure that you apply through a secured website or application, research about lenders, avoid clicking on any link before researching, check lenders history, etc. These days many scams are taking place so beware.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><strong><em>Share this blog with your family and friends if you find it insightful!!<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<p><strong><em>Download the<\/em><\/strong><a href=\"https:\/\/lxme.onelink.me\/95JV\/lxmeblog\" target=\"_blank\" rel=\"noopener\"><strong><em><u>&nbsp;LXME app <\/u><\/em><\/strong><\/a><strong><em>for more such content!<\/em><\/strong><\/p>\n\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"Can Personal loan scams be dangerous?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Personal Loan scams are illegal and extremely dangerous. They need to be reported immediately. Your confidential details can be stolen and you can lose a lot of money in such a situation.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"What measures can one take to safeguard their personal and financial details when applying for an online loan?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"While applying for the loan online make sure that you apply through a secured website or application, research about lenders, avoid clicking on any link before researching, check lenders history, etc. These days many scams are taking place so beware.\"\n    }\n  }]\n}\n<\/script>\n","protected":false},"excerpt":{"rendered":"<p>We have a number of needs in our everyday lives for which we may require financial help. For women, this can mean anything from paying for their child\u2019s education to meeting an emergency healthcare expense. A Personal Loan is a common tool used to meet these unplanned\/emergency needs, but unfortunately, as personal loans have become <a href=\"https:\/\/lxme.in\/v1\/how-to-stay-safe-from-personal-loan-scams-and-frauds\/\" class=\"more-link\">&#8230;<span class=\"screen-reader-text\">  How to Stay Safe from Personal Loan Scams and Frauds?<\/span><\/a><\/p>\n","protected":false},"author":12,"featured_media":7217,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[659],"tags":[],"class_list":["post-7216","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan"],"acf":[],"_links":{"self":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/7216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/comments?post=7216"}],"version-history":[{"count":3,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/7216\/revisions"}],"predecessor-version":[{"id":17274,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/7216\/revisions\/17274"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media\/7217"}],"wp:attachment":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media?parent=7216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/categories?post=7216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/tags?post=7216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}