Personal loans are indeed a popular financial facility among Malaysians. To date, many Malaysians obtained a personal loan and has benefit from it. If it used for good, personal loans will benefit many individuals. In examples personal loan can be used for home repair, helping parents, debt management, as well as capital for business. However, keep in mind that not all personal loans offered are genuine, especially if the loan does not come from the bank.
Bank Negara Malaysia (BNM) also frequently advise and warn the public to be more cautious about personal loan offers. Hence, we would like to share with you some ways to identify the personal loan offered is a scam.
Bid through social media
Have you ever seen ads on social media such as Facebook, Instagram or Twitter regarding a personal loan offer that can be passed even if you have been blacklisted by the bank? Do not be surprised that the matter has become a habit for private lenders to commit fraud.
This is the easiest thing for you to identify the personal lender is correct or just a scam. In fact, such offers are a welcome news for individuals who are not eligible for personal loans from banks. For individuals who are active in the social media world, you may have been approached by individuals who offer personal loans. Normally, they will use beautiful women’s pictures as an initial bait. If the images used are images such as animals and other people’s pictures, the possibility of fraud is high.
They also love to send short messages (SMS) or via Whatsapp applications with very attractive deals and hard to reject. Additionally, they also prefer to process everything through online and do not need to meet. This makes them easier to commit fraud because they do not have to go out to meet people.
‘Borrow RM5,000, pay RM5,000’
Another way you can tell that a lender is cheating is through a non-interest bearing or interest-free offer on the part of the lender. Example is like a ‘Borrowing of RM5,000, pay RM5,000’ offer. This means that lenders offer loans without interest rates or profits. As we know, every lender company is a business and is sure to profit from any loan offered. So, it is impossible for a company to service them without expecting a profit. Additionally, you should also be cautious if there is a lender company that provides interest rates that are too low to exceed the current interest rate of the bank.
For individuals who have already been approved for personal loans, they need to sign a letter of agreement as a sign of agreement. If you as a borrower are not given the opportunity to read the contents of the agreement and be forced to sign the agreement, it indicates you may be deceived through a biased agreement. The most common thing is when the borrower is unaware of the interest rates they take is too high. Finally, customers are forced to pay the loan amount up to 10 times the amount of the loan.
The modus operandi commonly employed by this type of company is to inform the loan application which is in the process difficult to be approved. Therefore, to approve the loan application is to provide advance payment. After the initial payment is received, the company will usually be lost and cannot be reached. Such cases usually occur when a personal loan applicant is too hopeful and desperate to get the personal loan. Finally, the losses are to be incurred when the loans cannot be got. In addition to early payouts, lenders who want to trick you will usually ask you to pay too much management fees.
Keep in Mind
Do not be ashamed to share your experience if you being deceived by a personal loan company. The sharing of your experience may save many more individuals from being deceived to greater numbers. Bear in mind, if you want to get a personal loan, be sure to apply from the right company or channel to not be deceived. You can check the list of licensed lender companies and registered with BNM.