Bajaj Finance Limited has warned its customers and the general public to remain vigilant against bogus loans offered by fraudsters in exchange for purchasing an insurance policy.
In a statement, Bajaj Finance said the fraudsters are fooling the public. by encouraging them to take out compulsory life insurance as a prerequisite for obtaining a loan. They also pose as a representative of Bajaj Finance Ltd. and mislead the public into purchasing an insurance policy by stating that the premium amount should be a percentage of the loan amount desired by potential borrowers.
According to Bajaj Finance, the Modus Operandi of fraudsters is mainly the following:
The insurance policy is used as a bait by the fraudster who ensures that the victim receives all the insurance documents from the insurance company. The fraudster stays in contact with the victim for a long time and cites excuses for the delay in the loan disbursement process.
Most insurance policies have a 90-day free consultation period for the insurance policy, during which the customer can cancel the policy and the premium will be refunded. Once said free consultation period is over, the fraudster will stop responding to the victim. It is subsequently that the victim realizes the suspicious behavior of the fraudster and contacts Bajaj Finance Ltd.
Bajaj Finance also alerted its client via its social networks so as not to fall into such traps by fraudsters. The message states:
‘Loan lenekeliye life insurance policy purchase karnazaroorihai’. Aur you jhoothai !. Always remember that Bajaj Finance Ltd., does not require you to make a compulsory purchase of other products in order to qualify for a loan. Do not fall into such traps!
Bajaj Finance is the lending and investment arm of Bajaj Finserv.