Are you on the verge of taking up your first loan? Don’t make haste and take a while to read up on the variety of loans available and select one that suits your needs. When it comes to the topic of finances, you need to be doubly sure about your choices.
First of all never borrow money from an individual whose credit history is not up to the mark. It is easy to get carried away in case of emergencies, but take a while to consider all your options thoroughly. If you receive a mail or a phone call offering you loans at unbelievably low interest rates, it is definitely a hoax. Lenders earn from the interest on the loans and no legitimate lender will offer you an interest free loan. Legitimate lenders strict guidelines and all terms and conditions are made available transparently.
Some scammers ask you for a minimal amount as security before they grant you a loan. Stay away from such deals as chances are that you’ll never hear from them gain after you have made the small deposit. If a lender is not interested in your credit history and is not completely descriptive about the processes and the fees involved, it is sure to be a loan scam you need to stay away from. It is important that you keep your eyes open and try to find out all necessary information about the lending organization before submitting an application.
In certain cases, it is also said to be clubbed with a special offer like a discount card or Insurance plan. The normal pitch is once you take a card and become a member of a community or existing customer of an organization, you will be entitled for great discount offers and host of other benefits. It is most likely that after you purchase that card or Insurance plan, the sales representative may even stop picking up your call.
Our tendency to such issues is that “it will not happen to us”, also we are too smart to fall prey to such things. However, some of the smartest of business person gets fooled with a person posing to get loan for business without collateral. The person suggests that we need to bribe the official to the extents of 2-3% of the loan amount and loan will get sanctioned. The businessmen desperately looking for money for his expansion plans didn’t felt any trap while listening to the stories of this person who in turn was naming various reputed business houses as his clients.
Remember, it is always good to get better deals till the time you can understand the position of lending institution. Also, if someone is telling you about a products with extra ordinary benefits, discuss it with other players in the markets. Competitors might actually tell you the truth of the other side.