Check if reference number, date of loan approval are within the same financial year, as no bank asks for legal fees

You receive a call from an enthusiastic, overzealous, and charming executive claiming to bring you the news of a pre-approved loan. Take a moment and stop yourself from acting on this phone call. More often than not, such calls are made by fraudsters who are on the lookout for someone they can take advantage of and make easy money.

Beware of fake offers on Pre-approved loans

Most of the pre-approved home or personal loan frauds begin with a simple phone call from a so-called lender who offers you great incentives and interest rates on the loan. They make a lot of promises and claim to get you guaranteed approval. That right there is the first sign of a loan scam. There can never be a 100 per cent approval guarantee. There are just too many variables in between the application of the loan and it is sanctioned to have a guarantee for the loan approval.

As the number of online loan scams increases per day, here are some pointers that act as a red flag and help you identify fraud. Pay attention to the details and avoid being duped in order to save your hard-earned money. Listed below are a few things to look out for-

Credit History: Any authentic financial institution or lender offering you a loan would want to run a background check and confirm your credit history. This gives them the faith that you would make for a responsible borrower and return the…

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