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Home  /  Resources  /  Stay safe

5 signs of a loan scam (and how to avoid them)

Anyone asking for an advance fee is a red flag. Here's how to spot loan fraud and protect yourself.

5 min readJun 2026

Digital lending is fast and convenient — and that speed is exactly what fraudsters exploit. The good news: almost every loan scam gives itself away with the same handful of tells. Learn these five and you'll spot trouble before it costs you anything.

1. They ask for an advance or "processing" fee upfront

This is the single biggest red flag. Legitimate lenders never ask you to pay a fee before disbursal. On DhanBoost, fees are netted from your disbursal and disclosed in the Key Fact Statement — you never send money to receive a loan. If anyone demands an upfront payment to "release", "unlock" or "insure" your loan, stop.

2. They pressure you to act immediately

"Offer expires in 10 minutes." "Pay now or lose your approval." Urgency is a manipulation tactic designed to stop you thinking. A real lender gives you time to read your KFS and decide. If you feel rushed, that's the moment to slow down.

3. The app or link isn't official

Scammers clone brand names and logos. Always check you're on the official domain — for us, that's dhanboost.com — and that emails come from info@dhanboost.com. Be wary of loan offers arriving by random WhatsApp, SMS or Telegram links, or apps downloaded from outside official stores.

4. There's no clear lender or registration

Every legitimate loan in India is made by an RBI-registered entity. If you can't tell who the actual lender is, or there's no Key Fact Statement, walk away. DhanBoost is a platform; the loan is sanctioned and disbursed by our RBI-registered NBFC partners, and that's stated clearly before you sign.

5. They ask for OTPs, full card numbers or remote access

No genuine lender needs your OTP, full card/CVV, or remote-control access to your phone. These requests exist only to drain your account. Never share them.

How to stay safe

  • Never pay to receive a loan. No advance fees, ever.
  • Verify the lender and read the KFS before signing.
  • Use only official channels; check the domain and sender.
  • Never share OTPs, full card details or device access.
  • Report anything suspicious in DhanBoost's name to info@dhanboost.com.

Fraud thrives on urgency and secrecy. Slow down, verify, and you take away its power.

This article is general information, not financial advice. Loans are offered by DhanBoost's RBI-registered NBFC partners; all rates and charges are set out in your Key Fact Statement before you accept an offer.

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DhanBoostDhanBoostLending Platform

A premium digital lending platform offering fast, fully-online, fairly-priced personal loans — salary-linked, with a single repayment and no advance fees.

NAVIX Finance Private Limited
A digital lending platform.
CIN: U64990HR2026PTC144926

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Disclaimer: DhanBoost (NAVIX Finance Private Limited) operates a digital lending platform offering salary-linked personal loans. Loan approval is subject to DhanBoost's credit policy and eligibility assessment. DhanBoost does not charge any advance fee for loan processing. Representative APR and all charges are disclosed before you accept any offer. Please borrow responsibly.
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