Don't get scammed by offers during the festive season; cheap loans may turn out to be expensive; be cautious...

The festive season is in full swing. Dussehra has passed, and important festivals like Karva Chauth, Dhanteras, and Diwali are just around the corner. During this time, a large number of people purchase goods on loan. Consequently, many digital loan companies are launching large-scale offers to attract customers. Many companies also publish misleading advertisements. Therefore, it's important to be vigilant to avoid fraud or scams.

Keep these things in mind before taking a loan.
If you're taking a loan from a company you're hearing about for the first time, first check the company's details with the RBI and cross-check any personal information you provide, such as your PAN or Aadhaar.

Check loan offers and ensure they promise instant approval or lower interest rates than expected. Be sure to read the terms and conditions.

Many offers offer interest every month, which can result in a significantly higher annual interest rate.

For example, an advertisement states an interest rate of 1.5% per month, but this translates to an annual interest rate (1.5 * 12 = 18%).

During the festive season, it's common for companies to reduce interest rates but impose additional charges, which you discover upon billing or after purchasing the product. Therefore, before availing any offer, check to ensure there are no hidden charges.

Be careful when purchasing products on EMI.
Also, to avoid fraud during the festive season, whenever you purchase any product on EMI, analyze the overall cost. This will help you identify the benefits of the offer.

Experts advise comparing all offers before accepting them. Understand the pros and cons. This will help you choose the best offer.

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