Is it Safe Taking a Personal Loan in Mumbai from a Private Financer?

02 Jul 2019 // 22 min read // Personal Loans
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Whether you are building a business from scratch or planning a wedding or facing a financial emergency; in all these circumstances, the first thing which pushes the pain buttons is ‘money.’ Money is needed for everything, daily. However, in the urgent circumstances, there’s a need for a lot of money in a lot less time. And a loan comes out as an easy solution.

You can always repay the loan in small instalments over a fixed period. When you do it right before you know it, your loan is cleared and you have nothing to worry about anymore.

When you decide on taking a loan, you could do it in many ways. You could borrow it from family or friends, or you could file for a loan through a bank or maybe, from a private financer.

When people talk about borrowing money or taking a loan from a private financer, they always talk about financial security about how safe it is. They are not to be blamed; after all, you give out some decent amount of your personal information, and if the collateral is involved, then your assets are at stake too. When you borrow the money, you also give out your trust to the lender, either a private financer or a bank but when it comes to bank loans like the SBI Personal Loan, they are regulated by the government, and so, there are almost no risks involved.

However, it also makes them open for many downsides too. They come with a lot of baggage, as they say. Sometimes, the interest rate is too high; sometimes, the collateral cannot be arranged, and sometimes it takes a lot longer than you have. There’s also a huge amount of paperwork required for a bank loan.

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You get the gist.

These are some of the many reasons people turn to private financers. But should they? Is it safe?

There are a number of scammers pretending to be money lenders who rip you off of your personal information, charge you a hefty interest rate or trap you in a worse position than you are in already. However, it doesn’t have to be so. If you take enough precautions and do your homework, you would reach some legit private financer and effortlessly, take a Personal Loan in Mumbai that has low-interest rates risks.

Here’s what you can do:

  • Check if there is a website they own that seems legit and doesn’t say ‘unprotected’ when you try to open it. Most of the times, the scammers run a website that’s unprotected, and they snatch all information that they can. This could have serious ramifications for you.

  • Check if there’s a physical address on their website and check whether it exists for real. Google maps could help you with that. Any legitimate business owner or financer would have their business registered on Google and a business page attached to it, which shows on the map.

  • Don’t be hasty. No matter how urgently you need the money, don’t ever take the decision of borrowing money hastily. Even if the firm is real, you could end with higher interest rates than you anticipated if you don’t read the fine print and just go through with it.

  • Don’t give your Debit Card detail. It’s a no brainer but is still worthy of a mention because scammers do ask for it and people are still unaware of it to let them have the details. Any fees they charge would be deducted from the loan, so there won’t be a need of a Debit Card.

  • Check if there are any hidden charges you weren’t told out front. Legit lenders aren’t shady, and they stay away from all things shady. So, if there are any, you know you don’t want to trust them.

  • Go through their repayment method and procedure. If it’s well defined and professional meaning there’s enough time period for repayment so as to not burden you, they may just be actual lenders and no scams are involved.

  • Their interest could also be high. If they are professional and legit financers, they wouldn’t have a high interest rate. By high, I mean exceptionally high, something that’s unfathomable.

If you do take these precautions, you would be able to Take a Personal Loan in Mumbai without much hassle. It could be less troublesome and healthy on the pocket than your usual bank loans in many ways. 

Private lenders have their own way of deciding your creditworthiness, and your credit score would not be much of a worry. Although most of the private financers ask for a good credit score, they aren’t as strict, when it comes to credit score as the traditional banks are. You would simply have to validate a source of income, like a good salary or an operational business.

So, in a way, borrowing money or taking a loan from a private financer is not only safe but also advantageous, if you do your research right. It is always wise to take advice from someone who is in the know-how of such stuff and make sure you don’t make mistakes because when money is at stake, it’s a lot that is at stake. So, when you take a loan from a party, be safe than sorry.

Also Read: Which Bank Offers the Best Personal Loan Interest Rate in India?

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 90+ Banks and NBFCs. We have served 7 million+ happy customers since 1989.

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