How It Works
Scammers contact victims by SMS, email, or call, offering a "pre-approved" personal or business loan with very low interest. To "process" or "release" the loan, they ask for upfront payment toward insurance, processing charges, or GST — money that disappears, with no loan ever disbursed.
Real Example
SMS: "Congratulations! You are pre-approved for a ₹5 lakh personal loan at 4% interest. Pay ₹4,999 processing fee to disburse." After payment, the number becomes unreachable.
Red Flags 🚩
- "Pre-approved" loan offer out of nowhere, with no prior application
- Unusually low interest rate compared to market rates
- Requires upfront fee before any loan amount is disbursed
- Lender has no verifiable bank/NBFC registration
Protection Steps 🛡️
- Banks may pre-qualify existing customers, but never demand fees before disbursing a loan.
- Verify any lender's NBFC registration through the RBI website.
- Never pay "processing," "insurance," or "GST" fees to release a loan.
- Apply for loans only through known banks or verified platforms.