RBI cautions people against unincorporated loan providers | india | Hindustan Times
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RBI cautions people against unincorporated loan providers

The Reserve Bank on Tuesday cautioned the public to verify the credentials before dealing with entities promising various loans, saying there were cases where such entities disappeared after taking the processing fees.

india Updated: Aug 11, 2009 16:02 IST

The Reserve Bank on Tuesday cautioned the public to verify the credentials before dealing with entities promising various loans, saying there were cases where such entities disappeared after taking the processing fees.

The central bank said it noticed that certain entities are issuing a spate of advertisements in newspapers offering personal loans, loans against property and other loans, at a very low rate of interest.

"It has also come to the notice of the Reserve Bank that some of these entities are cheating the public by charging processing fees upfront and disappearing thereafter," the RBI said in a statement.

In the advertisements, these entities indicated their mobile phone numbers for the prospective borrowers to correspond, the bank added.

"Some entities also falsely claim to have been registered with the Reserve Bank of India," it said.

Warning against the unincorporated bodies, the central bank advised poeple to exercise utmost caution while dealing with such entities and to verify the credential of those entities before dealing with them, the statement said.

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