Introduction
Wedding loans are one of how many couples can cope with the skyrocketing costs of a venue, catering, and dresses, among many other arrangements. Although licensed money lenders present a proper and viable option, the rampant demand for wedding loans has also seen an influx of fraudulent lenders, who are not licensed yet, emerging in the bid to take advantage of naïve borrowers. If you are looking for wedding loan please click https://ipcredit.sg/. This article provides a general overview of signs to spot an unlicensed wedding loan offer and its solution.
Common signs of fraudulent wedding loan offers
Unregistered money lender: Borrowers should always confirm the name of a lender with the official registry, ask for their license number and independently confirm it from official web resources of the government. A lender who fails to address the issue of licensing or who is not officially listed is trying to play fraud on innocent borrowers.
Upfront Payments: Another way that fraudulent lenders employ is by requesting upfront payments before the loan is granted. They can say these are processing fees, insurance costs or verification fees. Nevertheless, legitimate licensed lenders generally withhold such fees from the borrowed loan amount and not in advance. Whenever a lender asks for payment through unusual means such as wire transfer, cryptocurrency, or gift cards then it is a probable scam.
Attractive Offers: If the loan proposal looks too attractive, it is saying something. Although licensed lenders could be less restrictive than banks, they will still scrutinize your finances and refuse to lend to you if you are not credit-worthy or your cash flow is uncertain. Any offer that pretends to not go through these checks should be a cause for suspicion. The absence of a physical office or an unverifiable address also shows illegitimacy.
No Loan Agreement: If the wedding loan provider is simply promising to offer a wedding loan without any written loan agreement is a fraud. A trustworthy lender will always provide a loan agreement defining clear terms like loan amount, repayment schedule etc.
What to do in case of scam in wedding loan offers
As soon as an individual becomes aware, that he has fallen into the trap of some unlicensed money lenders, it is advisable to stop all communications and report this to the appropriate authorities about this incident. A borrower should also inform his relatives, friends and neighbours about this incident to make them aware of this scam.
Conclusion
Weddings are perhaps one of the most important events in one’s life but also they can be expensive. An individual should consider these signs like upfront payment, no loan agreement etc. to escape the trap of fraudulent lenders.