How to avoid online loan scams?

You can avoid loan scams by applying for loans from RBI-registered financial companies or institutions. It is also crucial to check the institution’s registered address on its official website.

How do I know if I’m being scammed by a loan company?

Here are some of the signs that you may be getting scammed by a personal loan company: You are being rushed or goaded into signing up for a loan The loan company has no physical address The loan company’s website and/or app is not secure The lender is not transparent about all the fees and charges or has asked you to pay a fee before disbursing the amount The lender hasn’t asked for any documents and hasn’t tried to check your repayment history The lender has given you an approval guarantee

How do personal loan scams work?

Loan scams work in multiple ways: A scammer pretends to be from a genuine bank or NBFC and tries to get you to share personal data The app or website that you open is fake and steals your confidential data or money The loan terms are such that you are likely to default and pay heavy fines

A loan scam is any experience that offers credit under false promises meant to swindle you out of money or personal data. This may refer to unspecified fees being charged, fake websites that steal your financial data, or other forms of harassment to repay money you may have already paid.

What is personal loan fraud?

This refers to any fraudulent activity or scam that results in loss of money and peace of mind. While such scammers often target those who are new to credit or do not qualify for regular loans, they are becoming more common and can happen to anyone.

Is loan fraud serious?

Yes, loan app fraud-related activities are illegal and criminal offences. You can report any such incidents to a cybercrime police station close to your area of residence.

Can someone take a loan in my name?

Yes, someone else can avail of a loan by fraudulently using your PAN details. Such fraudulent loans will also reflect in your credit history and thus, it is essential to check your credit report regularly.

How to check if a loan company is legitimate?

You can check if a loan company is legitimate through the RBI website. A bank or NBFC will be genuine if it is registered with the RBI.

Is the Fibe app loan real or fake?

The Fibe app is entirely real, as it is registered with the RBI.

Personal Loan Frauds and Scams in India 2025

Q: How do I report personal loan fraud?

To report fraud related to personal loans, file a complaint at your local cybercrime police cell and inform your bank, so any payments can be stopped or put on hold at the earliest. Support your complaint with any screenshots, call recordings, or transactions to give complete information.

How to Identify and Avoid Personal Loan Scams in India 2025

Worried about personal loan frauds in India? You’re not alone. Loan scams in India are rising as more borrowers opt for instant loans online. This blog will help you understand how personal loan fraud cases happen, the red flags to watch for and how to stay safe.

With digital lending becoming as easy as ordering groceries online, scammers have found creative ways to exploit borrowers. They may impersonate legitimate NBFCs, create fake loan apps, or approach you as fake loan brokers promising guaranteed approval. If you have a low credit score, you are even more likely to be targeted with fake processing fee requests or phishing links.

According to RBI data, 45,613 cases of personal loan frauds amounting to ₹4.92 trillion were reported till March 2021 — showing why vigilance is crucial.

How to Protect Yourself from Personal Loan Scams?

Follow these practical steps to safeguard yourself from loan scams in India:

Phishing

Always check if the lender’s website or app is secure (look for HTTPS). Never click on suspicious links received via SMS, WhatsApp, or email.

Charges

Legit lenders deduct processing fees from the approved loan amount. If asked to pay upfront money, it’s likely a scam.

Offers

Loans are not sold like gadgets, avoid rushing into decisions because of ‘limited period offers’ or ‘flash loan approvals.’

Terms

Read eligibility, interest rate and repayment terms carefully. Vague or unclear terms often indicate personal loan frauds in India.

Verify

Confirm that the lender is RBI-registered via the official RBI website. Cross-check customer support contacts and social media handles. Beware of unofficial WhatsApp/Telegram numbers or lookalike pages.

Identity

Use masked Aadhaar (showing only the last four digits) while sharing documents. This prevents misuse of your details for fraudulent loans.

How to Handle Personal Loan Scams?

If you suspect fraud, act quickly:

Document: Save screenshots, call recordings and transaction proofs

Report: Lodge a complaint with your local police and cybercrime portal (cybercrime.gov.in)

Inform Bank: Block your card/account to stop further misuse

Move Funds: Transfer money to a safe account if your details are compromised

Monitor: Turn on SMS/email alerts, review monthly statements and check your credit report regularly to catch any unauthorised loans early

Why Choose a Trusted Lender?

Opting for a reputed lender reduces your risk of scams. Fibe is a safe platform that offers instant personal loans with transparent charges and no hidden fees. You can get up to ₹5 lakhs in just minutes through the Fibe, a PCI-DSS app-journey based.

Download the app or visit the website today!

FAQs on Personal Loan Fraud

How can I check if someone took a loan in my name in India?

Check your credit report (CIBIL, Experian, Equifax) regularly to detect unauthorised loans early.

Do banks refund scammed money?

Yes, if reported immediately and there is no fault of yours, banks are liable to refund as per RBI rules.

How do I report personal loan fraud?

File a cybercrime complaint, alert your bank and provide screenshots, call recordings and payment proof for faster resolution.

Personal Loan

How to Identify and Avoid Personal Loan Scams in India 2025