Bajaj Finance Warns Against Fake Loans In Exchange of An Insurance Policy Purchase: Check Report

Bajaj Finance Limited a part of Bajaj Holdings has warned customers or borrowers against fake loans in exchange of an insurance policy purchase. Via its official Twitter handle the lending firm has said that "Always remember that Bajaj Finance Ltd., does not require you to make a compulsory purchase of any other products to avail a loan. Don't fall into such traps!."

The Non-Banking Financial Company (NBFC) Bajaj Finance Limited has stated that "We wish to alert you of a new form of fraud wherein fraudsters posing as Bajaj Finance representatives are duping the public to compulsorily buy a life insurance policy as a pre-condition to avail a loan." As a warning to the customers the firm has requested that "We urge you to never engage with any unofficial/unknown intermediaries/unidentified fraudsters, and verify Bajaj Finance related loan offers at www.bajajfinserv.in or by visiting any of the nearest branches."

Bajaj Finance has explained how fraudsters are trying to fraud customers against loan schemes. The steps are as follows:

Step 1: The fraudsters use insurance policy as a bait to ensure that the victim receives all insurance documents from the insurance company.

Step 2: The fraudster stays in contact with the victim for a long time and cites some excuses for the delay in loan disbursal process.

Step 3: Most insurance policies have a 90 days free lock-in period, where the customer can cancel the policy, and the premium will be refunded. After the said free look period is over, the fraudster stops answering the victim.

In order to counter such fraudsters, Bajaj Finance Ltd. has shared some tips for the customers which are as follows:

• Bajaj Finance Ltd. does NOT require compulsory purchase of any other product as a condition for availing loan by an eligible customer. Hence, exercise caution against any such calls/communication.
• Never transfer any money to strangers/unknown callers offering lucrative deals and cashback.
• Never share your mobile number, EMI card number, One Time Password (OTP), PAN/Aadhaar details, Address proof over calls/social media pages/internet/e-mails.
• Always verify Bajaj Finance related loan offers/social media IDs/website links on www.bajajfinserv.in or directly from the nearest branch.
• Never tag fraud accounts on social media for any of your queries. Follow only our official pages/accounts.
• Refrain from downloading any third-party mobile apps or documents from any clickbait links sent on social media pages, e-mails, or SMS from unknown sources.

In a mission to secure customers against online loan scams or fraud calls, the private firm has also shared a Tweet by saying that "Savdhaan Rahein Safe Rahein is an initiative by Bajaj Finserv that compiles all the necessary steps that help you to stay safe against the ploys and scams by online fraudsters. Let's put a stop to all scam loan calls, online & SMS frauds with just a simple: NaJi NaJi."

The lender has also warned customers by saying that "Bajaj Finance | Fraud Awareness: Bajaj Finance has advised its customers and the public at large to stay vigilant against fake loan offers by fraudsters in exchange for an insurance policy purchase. The policy is used as bait by fraudsters to trap humble customers."

Bajaj Finserv is a leading non-banking financial company of India having a range of products to meet the varying needs of its customers. The lender offers products like consumer finance, SME finance, commercial lending, and investment options like mutual funds and fixed deposits (rated FAAA by CRISIL). Bajaj Finance Limited has been granted a long-term rating of 'BB+/Stable' and short term rating with 'B' by S&P Global Ratings.