How to Determine if a Loan Company is Genuine?
Most of us at some point time in life feel the need to borrow money. You might want to go for a personal loan to expand your business or a car loan to pay for that premium sedan or muscular SUV that you wanted to get for a long time.
There are a plethora of ways to opt for loans in UAE, apart from the traditional way of choosing the best bank for a personal loan in the UAE. The money lending market like all other line-ups of business has become more versatile yet user friendly at the same time.
Back in time when people thought of credit, the only option they had was financial institutions like banks, however, the era has changed extensively. Considering a large number of expatriates and UAE national looking for easy sources of credit there has been a substantial rise in the number of lending agencies and loan providers.
Most of them are legitimate, but one cannot deny the fact that there are plentiful of scammers willing to take advantage of people in urgent need of credit. Therefore, in order to rule out the possibility of getting scammed, it is crucial to determine whether the lending agency or loan provider is a genuine one.
Now the question arises on how to determine the legitimacy of a loan provider in UAE? Well, there are numerous ways to do that, and, in this thread, we will focus on tips and tricks to help you identify malicious intents of lending agencies.
Physical Location and Presence: The First Sign to Look for
When it comes to determining the legitimacy of the best personal loan in UAE, the first sign to look for is their physical presence. The majority of times the first step of researching for loan providers begins online and we tend to ignore the physical presence.
In most of the fraudulent cases, the lender does not mention their address online so that the debtor is unable to reach them. If you choose to borrow from a lending agency that functions online, always visit their registered office address that is stated on their website or portal. If the lending agency/loan provider has posted an address online on their website or portal it is a positive sign that indicates legitimacy.
The next step as an aware consumer is to verify the address. Very often, scammers post fake addresses online to make their portal appear like a genuine lender. To verify the authenticity of the online lending agencies you can search the internet for their address which will provide a clear picture that their official address exists in reality and is not an abandoned building complex. Secondly, you can call them on their contact number followed by observing the professionalism in the tone of the person on the other side. Ideally, the call should be answered by a customer service executive which will allow you to assess the authenticity of the provider.
Credit Checks: Green Signal
While you submit your application for credit to the best banks for a personal loan in the UAE or any other financial institution, they analyze your credit score and perform credit checks to evaluate your creditworthiness. People with wrecked credit scores find it really tempting if some lending offers them credit without a credit check. However, this lucrative offer might be a sign of danger.
The company might be a fraudulent agency trying to get your personal information as it is mandatory for loan providers and lending agencies to perform a credit check before approving the best personal loan in UAE. A genuine loan provider will carry out a credit check to asses your repayment capacity and track record with debts in the past.
No Application Fee: An Absolute Must
Another common sign to determine that the lending agency you’ve chosen is genuine is the application fees. Scammers and fraudulent companies often make money by charging people with fake ‘application’ or ‘processing fee’. Always remember, the best banks for a personal loan in UAE never ask for upfront payments.
There might be instances where there is a fee known as ‘origination fee’ against best personal loans in UAE but that is charged from the loan amount after disbursement. So, if a lending agency asks for an upfront payment in order to secure payment never send money. A genuine lender will never ask you to wire money to process your loan application. Scammers and fraudulent online loan providers always prefer modes of transactions that are difficult to trace such as a wire.
Clear Terms & Conditions
Before proceeding for any sort of credit it is extremely vital to be aware of all the terms and conditions associated with it. To make things easier and convenient you should read the fine print of the loan. In the case of best banks for a personal loan in UAE, the terms and conditions are clearly stated which allows the debtor to get a cleared idea of the various pros and cons of the loan.
People opting for a loan should lay emphasis on Important detrimental factors like the APR, followed by the repayment period, the applicable rate of interest, maximum loan amount, etc. A legitimate lending agency the end amount you will pay at the time of closure of the loan. If the terms and conditions appear ambiguous verify the provider, because there is a high probability that it might be a scam.
Refer to Customer Reviews
The simplest yet the most reliable way to check that the lending agency you’re dealing with is a genuine one is based on customer reviews. The internet in the modern era has given us the strength to raise our voice and reach out to a large number of people at the same time.
Even if you are in urgent need of a best personal loan in UAE, spare some time researching about various available options and their customer reviews. Customer reviews are nothing but feedback posted by people who have already availed their services. The best part is that these reviews are public and can be accessed by anybody allowing willing debtors to evaluate the quality of service offered by providers.
Is the Lending Agency Pressurizing You?
A common point reported by people who been caught prey by lending scammers is pressurizing for signing the loan agreement. Best banks for a personal loan in UAE never pressurize their customers for agreeing on the terms and conditions and leave the decision over the customer.
A common way of tricking customers is using lucrative taglines such as ‘limited period offer’ or ‘expires tomorrow’ which works quite a lot of times. Scammers use these fake lucrative offers as a tool to get valuable information that can be later sold for money.
Best banks for personal loans in UAE are very less likely to offer special offers that appear lucrative, the rate of interest charged over the best personal loan in UAE should be stable, fluctuating with the change in the market.
Summing it Up
The best way to stay safe from scams is to research and analyze the provider thoroughly to identify the scope of fraudulency if any. You can make use of online web aggregators to get a clear and precise idea of all the details of the best banks for a personal loan in UAE.