New Delhi: In the digital age, taking a personal loan has become easier than ever. Loan is available within a few minutes through mobile apps and online platforms. But taking advantage of this facility, thug gangs are making people their victims. Cases of fraud to personal loans are increasing rapidly across the country.

Fraudsters lure people with attractive claims like “instant loan”, “without documentation”, and “no credit score required”. As soon as a person trusts these apps, he is asked for Aadhaar, PAN, bank details and contact list. After this, either a very small amount is given or personal information is misused.

How does a personal loan scam happen?

• Fake loan offers are sent through social media, messages and emails.


• The user is asked to download the app from an unknown link.


• As soon as the app is installed, Aadhaar, PAN and other sensitive information is asked.


• Small amounts are given at very high interest rates (40–60%) or the loan is not available at all.


• If payment is not made, threats, calls and mental harassment begin.

In many cases, attempts have been made to defame the victims by using their personal photographs and contacts, which also increases mental stress.

Strict warning from RBI and government

Reserve Bank of India (RBI) has clearly stated that people only RBI registered banks and NBFCs Take loan from only. It has been advised to stay away from fake loan apps.

The government has so far taken action against many illegal digital loan apps and banned them and the strictness is continuing in the future also.

Important precautions to avoid fraud

• Take loan only from RBI recognized bank or NBFC.


• Before downloading the app, please check the ratings and reviews.


• Read the interest rate, EMI and processing fees carefully.


• Do not give Aadhaar, PAN, OTP and bank details to any unknown app.


• Avoid apps that ask for contacts or photo permissions.


• Report any suspicious activity immediately to the cyber crime helpline.

As convenient as a personal loan is, it can also be risky if one is not careful. Acting hastily due to the lure of easy money can prove costly.

A little caution, correct information and choosing a trustworthy institution can save you from huge financial losses and mental troubles.