Interior decorator loses Rs 97 lakh in Thane: How to avoid falling prey to loan scams

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In a case that shocks both finance and construction community, Police have registered a case against four persons for allegedly cheating an interior decorator in Thane of Rs 97.75 lakh under the pretext of arranging a business loan through CSR funds.

The 45-year-old victim, a resident of Badlapur area of Maharashtra's Thane district, was promised a business loan of Rs 2.75 crore from funds under the Corporate Social Responsibility (CSR).

Gaining the victim's trust, the accused demanded that he deposit a bank guarantee amount. Believing their assurances, the victim paid them Rs 99.25 lakh. Out of this, only Rs 1.5 lakh was later returned, while the remaining Rs 97.75 lakh was allegedly siphoned off without any loan being sanctioned. The incident came to light on Monday after the victim approached the police to file a complaint.

While the case is a harsh reminder of how confidence-tricks are evolving, it also gives us plenty of money lessons one can learn from it.

How to avoid falling prey to such scams

This serious incident holds several cautionary lessons for anyone seeking loans or financial support:

• No legitimate lender will ask for huge sums before approvalA genuine bank or NBFC approves a loan based on creditworthiness, business plans, financials—not by demanding large upfront payments in the name of guarantees or deposits.
• Understand what CSR funds are used for CSR money is intended for social welfare (health, education, environment, community development), not for granting business loans. So claims of “CSR loan schemes” should raise alarm bells.
• Fees must be proportionate and transparent Real lenders may deduct small processing or underwriting charges (often 1–5 %), usually from the disbursed amount. Asking for 30–40 % or more upfront is a red flag.
• Always go direct to the lender Many scams work via middlemen or so-called “agents.” If someone claims to arrange a loan on your behalf, skip that step—go straight to the bank or institution and verify.
• Verify credentials, ask for paperwork Request official loan sanction letters, check registration numbers, and independently verify claims. Do not depend only on verbal assurances or glossy promises.
• Report and resist pressure tactics Scammers often use intimidation or urgency to coerce you into paying. Refrain from hasty decisions. Document all interactions and, at the first sign of fraud, lodge a police or cybercrime complaint.

1. Always treat unsolicited financial offers—especially ones that sound “too good to be true”—with suspicion.
2. Be skeptical of proposals that misuse familiar terms (CSR, guarantees, fund grants) in unusual contexts.
3. Maintain clear financial records, never hand over large sums without a paper trail, and take a cooling period before acting.