Reported By:| Edited By: |Source: |Updated: Jan 12, 2022, 03:13 PM IST
Financial scams of all sorts have increased dramatically in modern times with the help of higher internet penetration and lower financial literacy among people.
These scammers have developed a whole lot of tricks and cons to cheat people. They usually target small and micro businesses and enterprises because these business owners usually face difficulty getting a loan. Or sometimes, these small business owners don’t have any collateral, so they fall prey to these scams.
The most common forms of business loan scams are credit repair scams, advance-fee scams, consultancy fee scams, peer-to-peer lending scams, debt collection scams, ghost investor scams, funding kit scams, swindling loans brokers, debt relief scams, etc.
Tips to Avoid Business Loan scams
- Go to Credible lenders – The first and foremost tip is to only go to a credible lender.
If you are applying for a business loan online, make sure the lender has a history of lending. Check if he has been in the lending business for a while because it becomes quite difficult to analyze the credibility of a new lender online.
- Research about the lender – If you are applying for a loan from any loan app. make sure they are affiliated with some bank. Also ensure that the app is recognized by the RBI. Please read the terms and conditions of the loan carefully and make sure all the loan details are mentioned in it.
- Visit the office…
