Five Ways You Can Prevent Fraud While Availing of Online Business Loan

1. Only access the official app or website of your bank or NBFC:

The scammers generally scam people through malicious links redirected toward their insecure websites promising quick business loans. If you search the bank or NBFC’s name on Google, you will find their official website and application, which are generally equipped with advanced security features like SSL certificates or HTTPS-marked websites.

For mobile applications of banks and NBFCs, you can easily check their authenticity on the Google Play Store and Apple App Store by simply checking their publishers.

If unsatisfied with the website, you can search online further and go to the bank’s branch to learn more about their online procedures.

2. Stay away from phishing calls, SMSs and emails:

You must stay alert of any phishing calls or frauds calling you directly over your phone or sending you SMSs regarding your online business loan.

But now, due to several applications like True Caller, you can verify the caller’s true identity and the sender of the SMSs. If you come across any suspicious communication, report it to the police.

Secondly, you can find most scamming emails in your SPAM folder. As frauds try to scam as many people as possible, they mail many people at once, and then your email service providers usually mark those emails as spam or junk.

The scammers generally use free email services like Gmail. On the other hand, you will get emails from the Banks and NBFCs in your Inbox, and they will end with an official business domain name.

For example, emails coming from the Bank of Maharashtra will have @mahabank.co.in as the email address, while for Bank of Baroda, the email address will end with @bankofbaroda.com.

3. Be Extremely Vigilant While Uploading and Sharing Your Documents:

If you apply for business loans, you should be extremely careful while uploading or sharing your documents and credentials like PAN, Aadhar, bank account details, photographs, and signatures.

The banks offering loans will ask you to register yourself first, and you may have to visit your nearest bank branch. You will get a login ID and password. Then by using the bank’s secure portal or mobile application, you can upload your documents for the business loan. On the other hand, scammers will ask you to send your documents via email or even WhatsApp. Remember, you should never share your OTP, online banking ID and Password, and credit/debit card details with anyone.   

4. Read Carefully and Understand The Loan Agreement In Detail:

Whenever you apply for a business loan, read the agreement carefully. If you are having difficulties understanding the agreement, you should ask the responsible bank employee or loan agent for clarification.

This way, you will not only be able to prevent any fraud, but you will also be able to find out if there are any hidden charges or extra charges that you need to bear. You will also be aware of the loan payment policies such as advance payment, top-up loan, and EMI calculation. 

5. Use A Secure Connection During Filling Out The Online Loan Applications and Document Uploading:

You should never file an online business loan application from a public computer or use a public Wi-Fi connection as they are vulnerable. 

Even on a secure network, you should use a premium antivirus for some added protection, as the software can alert you of any possible phishing or Scams. 

What To Do If You Are Scammed?

Even if you get scammed, there is still hope, and you may get your money back. So, what can you do if you get scammed while applying for a quick business loan?

1. Contact your bank immediately:

The scammers got access to your bank account and got your money. So, you should immediately contact the bank and inform them.

2. Contact the police:

Inform the local police, and give them the necessary details to help nab the culprits.

3. Change your login passwords and PIN:

You must change your online banking login passwords and PINs to avoid further losses.

Conclusion:

With easier access to online business loans, scams have also increased. Be careful while seeking an online business loan.

Never feel shy of cross-question if you are not satisfied with the answers from the loan agent of the bank or NBFC. At FlexiLoans, we always try to answer all the questions in your mind to ensure you get a smooth approval of a business loan.