A devastating fraud case recently emerged from Rajkot, where a 33-year-old individual lost Rs8.85 lakh to a scammer posing as a loan facilitator. The victim received what appeared to be loan approval notifications via WhatsApp and proceeded to pay Rs9.35 lakh under the guise of processing and login charges. The promised loan never materialized, and the fraudster returned a mere Rs50,000 before disappearing, according to The Times of India.

 

This heartbreaking incident left a desperate borrower in an even worse financial position, having lost his limited savings while seeking help. The irony is tragic—someone searching for financial relief ended up in deeper trouble.

 

Every fraud case offers valuable insights. Let's examine the critical lessons every loan applicant should know to protect themselves from similar schemes.

 

Key Safeguards When Seeking Credit

 

Understanding Processing Charges

While legitimate lenders do impose processing fees, scammers exploit this common practice to appear credible. The crucial difference? Genuine lenders never demand upfront payment. Instead, they subtract processing fees directly from the sanctioned loan amount before disbursement.

 

Beware of "Commission" Demands

If anyone requests a "commission" to facilitate your loan, consider it a major red flag—it's essentially a bribe disguised under a different name. Walk away immediately. With numerous legitimate lenders available in today's market, there's absolutely no reason to pay anyone extra to secure financing.

 

Verify Official Communications

The Rajkot victim fell for the scam partly because he received WhatsApp messages claiming loan approval. However, authentic banking institutions always send official communications via text messages that clearly display the bank's registered name. These messages originate from corporate numbers, never from personal mobile numbers.

 

Therefore, any loan-related message coming from an individual's phone number should be treated with extreme suspicion.

 

Understanding Disbursement Timelines

Personal loans are typically disbursed rapidly—often within the same day of approval. If someone claims your bank needs several days or weeks to release funds after approval, and links this delay to payment of processing or login fees, you're likely dealing with a fraudster attempting to steal your money.

 

Explore Direct Digital Options

Today's financial landscape offers numerous instant loan solutions through banks and fintech companies. These platforms disburse loans immediately after document submission. Going directly through these channels is far safer than relying on intermediaries who might turn out to be criminals.

 

The bottom line: Stay vigilant, verify everything, and remember that legitimate lenders follow transparent, standardized procedures that never involve upfront cash payments to individuals.