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How can you protect yourself from fraud while taking out a digital personal loan?

  • 26-May-2022
How can you protect yourself from fraud while taking out a digital personal loan?

In the previous two years, the pandemic has changed everything, there was a rapid increase in digital transactions, and the same with loan processing and disbursement, which was totally online. 

 

 We can also see examples in our daily life like we prefer to make our payments online rather than to visit a mall, local Kirana shops, and markets.  

 

Therefore, availing a loan is very easy nowadays, and the process becomes convenient & digital. But there are some risks of fraud and cheating while applying for a personal loan digitally. 

 

Hence, it is important for individuals to know how to spot these frauds and save themselves from loss. 

 

Here are Some Warning Points that Indicate to you if the Digital Personal Loan Being Provided to you is a Scam or Fraud -  

  • Use Verified Apps Only

Mobile apps are an extreme access to a variety of services, but not all apps keep your information secure. Therefore, be careful of the apps that you are installing on your phone and make sure that they are verified and genuine.  

 

  • Browse Authorized and Secured Websites Only 

Avoid making digital payments unless you are sure whether it is genuine or not. You must browse only official websites which begin from www and their domain name in the URL and avoid non-secure websites. 

 

  • Operate Secure Internet Connections

Signing in your phone to an unsecured public wi-fi connection can be a problem as it leads to cyber fraud. They can track your activities and get access to your mobile phone to commit fraud. Thus, if you are going to make an online payment or share any personal banking details, assure you to make it on a secure connection. 

 

  • Be Aware when Using a Debit or Credit Card

You should never let your card out of sight to anyone when using it to make payments at a restaurant, shop, or while receiving home delivery.  

Confirm whether the card reading POS machine is real or not, or a card reader in disguise takes all the data to steal your hard-earned money.  

Also, enable the option of international transaction only when you are in abroad, as the two-step verification required in India for payments should be removed.  

 

  • Update your Mobile or Computer Security

It is important to have security software for mobile devices and computers. Also, ensure to update web browsers and operating systems periodically.  

While setting a new or resetting password avoid creating easily guessable passwords and try to set a strong password with a combination of numbers, special characters, uppercase, and lowercase. 


  • Do not Respond to Spontaneous Calls, E-mails, or SMS

We all get fake phone calls, messages, and emails that are trying to fraud by disclosing your financial information.  

Fraud callers may act as employees of some lenders or financial institutions and ask for personal details on the names of card or service expiry, free cashback, unused reward points, etc... Once you provide your personal information to them, they will use it to withdraw money from your bank account. 

 

  • Do not Answer Calls that Ask for ‘Remote Access to your Computer or Smartphone

Fraudulent may call you directly & pretend to be an executive of a technology company. They might even cheat the caller ID so that it displays a genuine phone number from an established company. They will definitely ask you to download an application that provides them remote access to your device. 

Therefore, the best thing to do at any request for remote connection to your system is to hang up on them without saying a single word.  

 

How to Get Alert From Online Loan Scam? 

 

                                                             @contentImg

 

Prevent Confidentiality: Do not share your personal information and details such as PINs and passwords with anyone on a call, over chat, or through email.  

 

Constantly Changing your PINs & passwords: Passwords and PINs should be changed twice a year so that it is not permanently recorded anywhere. It will keep you away from any scam. 

 

Stay Informed: - News channels and newspapers always have the information about the reports of loan frauds. You should understand them in detail & be careful of such incidents that happen to you.  

 

See Odd Transaction: - Getting text messages will help you to keep track of any doubtful transaction and enable two-factor authentication on all your corporate and personal accounts. 

 

Track your Credit Report: - Verifying your bank statement once a month is all right but looking over your credit report is even better. If a scammer makes use of your personal information for any financial benefit, then it will be disclosed in that credit report.  

 

Personal Loan Bank Details  

Rate of interest  @7.90% per annum  
Loan amount  Up to Rs. 25 lakhs 
Repayment tenure Up to 7 years 
Processing fee  Up to 2% of the loan amount  

 

Current Personal Loan Interest Rates and Processing Fee 

Bank  Min Interest Rate (p.a)  Processing Fee  
SBI Bank  10.25%  Up to 1%  
Kotak Mahindra Bank  10.30%  Up to 1%  
HDFC Bank  10.50%   Up to 1%  
ICICI Bank  10.75%  Up to 1%  
IDFC First Bank  10.49%  Up to 1.15%  
Axis Bank  10.50%  Up to 1%  
Yes Bank  10.50%  Up to 1%  
IndusInd Bank  10.49%  Up to 1.75%  
Bank of Baroda  10.49%  Up to 1.15%  
Punjab National Bank  11.00%  Up to 1.25%  
Karur Vysya Bank  11.15%  Up to 1.75%  
Standard Chartered  12.00%  Up to 2%  
South Indian Bank  10.25%  Up to 1.50%  
Tata Capital  11.99%  Up to 2%  
Fullerton India  12.50%  Up to 2%  
HDB Financial  12.49%  Up to 2%  
RBL Bank  14.00%  Up to 1%  
Incred Financial  20.00%  Up to 4%  
Hero Fincorp  20.00%  Up to 4% 

 

Features and Benefits of a Personal Loan 

  • The existing personal loan borrowers are eligible for the top up loan facility.

 

  • Quick disbursal of the top-up loan amount

 

  • It requires minimum documentation

 

  • Does not require collateral to avail loan

 

  • Affordable interest rates

 

  • High loan amount

 

  • Flexible repayment tenure

 

  • Low processing fee

 

  • It can be used for several purposes

 

  • There are many banks that also provide instant disbursals for personal loans

 

Personal Loan EMI Calculator 

Equated Monthly Installment (EMI) facilitates the borrowers to calculate their monthly payable EMIs. This amount will be paid regularly to banks & financial institutions for a certain tenure period. It carries the combination of interest & principle that is paid in a single amount.  

 

The sum of payment & interest together is divided by tenure. However, at the starting phase, applicable interest rates on EMIs would be higher and after every payment, the EMIs will be reduced. 

 

If you are planning to get a loan no matter whether you opt for a home loan, business loan, car loan, or any other loan. Knowing your monthly payment is significant to plan your finances accordingly.  

 

EMI Calculator is an auto-calculator online device, it is a user-friendly tool- anyone can use it without third-party involvement.  

 

Easy Formula to Calculate EMI: 

P x R x (1+R)^N / [(1+R)^N-1] 

Where - 

P stands for Principal 

N stands for Loan Tenure 

R stands for Monthly Interest Rate 

 

Personal Loan EMI Calculation with Example 

For example, if an individual takes a loan of Rs. 15,00,000 at an interest rate of 8.00% for a tenure of 5 years.  

Principal Amount: - Rs. 15,00,000 

Rate of Interest: - 8.00% 

No. of Monthly Installment: - 60 months or 5 years 

Monthly Payable EMI Rs. 16251 
Total Interest Rs. 85044 
Total Payment Rs. 585044 

 

Benefits of a Personal Loan EMI Calculator 

Personal loans are secured loans that let the borrowers acquire loans without pledging collateral or security. These funds can be used for various purposes including higher education, medical expenses, weddings, travel & other requirements. 

 

  • Flexibility of usage: - When it comes to the EMI calculation of personal loans, it is a user-friendly tool that allows the individual to calculate EMI in less than 30 seconds.

 

  • Accurate report: - Do not waste your time by doing manual calculations with complicated formulas. Let it be apart while online EMI calculator device is convenient here to ease your process and also gives an accurate report.

 

  • Enhance Credit Score: - If you ever made default on loan EMIs & because of that faced a low score, personal loans are most preferred by borrowers & easily repayable loan that enhance your credit score instantly.

 

 

Eligibility Criteria of a Personal Loan  

Criteria  Self-employed  Salaried  
Age limit  21 years to 68 years of age 20 years to 60 years of age 
CIBIL Score  750 or above  
Minimum loan amount Rs. 1 lakh Rs. 1 lakh 
Maximum loan amount  Up to Rs. 50 lakhs Up to Rs. 40 lakhs  
Work experience / business continuation  2 to 5 years Minimum 1 to 3 years 

 
 

Documents Required for Salaried & Self-Employed Individuals  

Identity Proof (Any one of the following)  

  • PAN Card
  • Aadhaar Card
  • Valid Indian Passport
  • Valid Voter ID
  • Valid Driver’s License

Address Proof (Any one of the following)  

  • PAN Card
  • Aadhaar Card
  • Valid Indian Passport
  • Valid Voter ID
  • Valid Driver’s License
  • Utility Bills (Electricity, Water, Gas)

Income Proof  

  • Bank statements of salary account in PDF format for the previous three months.
  • ITR with computation of Income form – 16 (If File)
  • Copy of GST return for the previous year of a self-employed individual

 

 

How to apply for a Personal Loan Online?  

Step by step to apply online -  

Step 1: - Visit the official website of your preferred lender & verify your loan eligibility.   

   

Step 2: - By using the EMI calculator for personal loans, you can evaluate your monthly payable EMI.  

   

Step 3: - After calculating your EMI, start filling in an application form.  

   

Step 4: - Enter all the necessary information and choose the needed loan amount & loan tenure.   

   

Step 5: - After filling in the application form, click on the ‘Submit’ button.   

   

Step 6: - After checking your application, the concerned department will get in touch with you for further formalities. 

 

 

Why to Choose Financeseva for a Personal Loan?  

Financeseva will help you -   

  • Comparing various offers from different lenders
  • In getting a hassle-free loan process
  • To select the best deal based on your requirements
  • To get a personalized loan offer and doorstep service

 

FAQs – Personal Loan  

What is a personal loan?  

A Personal loan is a type of unsecured loan that allows an individual to borrow from bank or any financial body if they require a fund to pay for their financial needs. 

 

What is the maximum loan amount that an individual can get to fulfill their personal requirements? 

The maximum loan amount that an individual can get is up to Rs. 50 lakhs and it also depends on the profile of the individual. 

 

How much credit score is needed to get a loan? 

Basically, a good credit score will help you to avail better offers for a loan. For that, the score must be 750 or above.  

 

For what purpose can a personal loan be used for? 

A personal loan can be used for several purposes such as holidays, purchasing consumer goods, starting a small business, buying a vehicle, paying medical bills, and debt consolidation. 

 

What are things to consider while applying for a loan? 

While applying for such loans, make sure to meet the eligibility criteria of the preferred lender to avoid a loan rejection. 

 

How to avail a personal loan? 

There are many banks, financial institutions, or NBFCs that provide loans by both online and offline, you are required to fill in some necessary information in the application form.  

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