RBI asks people to be wary of unincorporated loan providers

New Delhi, Aug. 11 (ANI): Cautioning the loan seekers to be wary of dubious entities, the Reserve Bank of India (RBI) on Tuesday asked public to verify the credentials of loan providers before dealing with them.

Several loan-related entities lure people by issuing advertisements in newspapers offering personal loans, loans against property and other loans, at a very low rate of interest, the central bank noted.

"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.

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

The RBI also advised people to be careful while dealing with such entities, and to verify the credential before dealing with them. (ANI)