Personal Loan Scams: Beware of These Traps Borrowers Keep Falling Into

• Fraudsters exploit the urgency for money, often targeting those with medical bills or pending payments.
• Common scam tactics include demanding upfront 'processing fees' or 'GST' into personal accounts; legitimate banks deduct charges from the loan amount.
• Beware of instant loan apps that promise quick cash but later threaten to expose personal data if repayment is delayed; verify RBI registration.
• Be suspicious of 'guaranteed approval' offers regardless of CIBIL score, as no bank approves loans without checking income and credit history.
• Avoid fake bank websites and links; always type the bank's official URL directly and never share your OTP with anyone.