How to identify personal loans scams

The worst time to fall prey to a scam is when you can ill afford to, your situation is desperate and your rational though process is impaired by the fixation on a quick fix. Sometimes it happens because it your own fault.
The scammer defrauded you by simply appealing to your greedy instincts.
When an offer is too good to be true, then it is too good to be true! It can’t be, it is not real!.One on the scams doing the rounds is in the personal loans space when fraudsters make claim to act as personal loans agents or broker. The easiest way to spot a scam of this type is through the offer of a very large unsecured personal loan at a very low interest rate. The scam will offer unsecured loan as high as two hundred thousand Rand (R200 000) at an annual interest rate of three percent (3%) or five percent (5%). This should be a red flag. Unsecured personal loans are regarded as very high risk by lenders therefore attract high interest rate to mitigate the high risk of default. This scam will defraud you of your money by asking for an upfront fee to process the loan. The scammer will claim that they need an upfront payment as an attorney fee to process the contract. Most personal loans charge an initiation fee and the normal industry practice is to include this fee on top of the principal amount and make the deduction from you monthly installment. Upfront payment of the initiation fee is normally voluntary. Anyone who claims the upfront payment is a requirement is a potential scammer. Be very cautions when dealing with such a claim. It may happen that once you pay this upfront deposit the scammer will come back for more money to process another legal document and you will keep paying for as long as you still have some money left. Once you are broke. The scammer will brake contact and you never see you promised loan.

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