Spotting a loan you never took is usually frightening because it feels both personal and urgent. One day it is an SMS about an EMI, a missed call from a recovery agent, or a sudden dip in your credit score. The uncomfortable truth is that PAN and Aadhaar details are enough for fraudsters to attempt digital loans, especially when documents are shared widely, stored casually on phones, or reused across multiple platforms. If you suspect misuse, the goal is to do three things fast: confirm what has happened, create a formal paper trail, and block further damage.
Confirm the loan first, not through calls but through your credit report
Start by pulling your credit report from all the major bureaus. In India, the same loan does not always show up cleanly everywhere, and some lenders report to only one or two bureaus. Your report will show the lender name, the account number, the opening date, the outstanding amount, and whether any instalment is already marked overdue. This matters because your response becomes much stronger when you can quote the exact loan entry rather than arguing on a phone call.
Write to the lender immediately and put the loan “in dispute”
Once you see the loan entry, email the lender’s grievance channel and state clearly that the loan is not yours and your identity has been misused. Ask for the KYC set used to approve the loan, including the document copies and the method of verification. Tell them you are filing a police complaint and require the account to be marked as fraudulent and under dispute so reporting and recovery activity pauses during investigation. Keep everything in writing, save screenshots, and insist on a ticket number or written acknowledgment.
File a cybercrime complaint and an FIR, even if the amount is small
This step feels like paperwork, but it protects you later. File a complaint on the national cybercrime portal and also file an FIR or at least a written complaint at your local police station. Lenders and credit bureaus typically take correction requests far more seriously when you attach a police acknowledgment. It also helps if recovery agents escalate, if you receive legal notices, or if the same identity is used again.
Dispute the loan with the credit bureaus so your score can be corrected
In parallel, raise a dispute with every credit bureau where the fraudulent loan appears. Attach your complaint to the lender and the police acknowledgment. Ask the bureau to mark the account as disputed while the lender investigates. If the lender confirms fraud, the bureau should remove the entry and restore your credit score. This is important because even a short period of “overdue” reporting can affect future loan approvals, credit card limits, or interest rates.
Lock down Aadhaar usage and tighten your identity hygiene
If Aadhaar was part of the KYC, lock your biometrics through UIDAI so your fingerprint or iris cannot be used for authentication without your consent. Check your Aadhaar authentication history to see whether there were suspicious verification attempts. For PAN, you cannot “lock” it the same way, so your best defence is monitoring and limiting exposure. Avoid sharing full Aadhaar or PAN images unless absolutely necessary, use masked Aadhaar wherever accepted, and do not store clear scans in easily accessible folders or WhatsApp chats.
Tell your bank and watch for follow-on fraud
Inform your primary bank that your identity has been misused. Ask them to note it on your profile and to be cautious with any new loan or card enquiries. Keep an eye on SMS alerts for new credit enquiries. Many victims find that once their data is compromised, the first fraudulent loan is not the last attempt.
Escalate fast if the lender drags its feet
If the lender does not respond meaningfully or continues recovery calls despite your complaint, escalate through the lender’s internal escalation matrix and then to the RBI’s grievance mechanism or the relevant ombudsman route, depending on whether the lender is a bank or an NBFC. The key is to show that you raised the issue promptly, documented it, and gave the lender a reasonable chance to investigate.
A sensible prevention routine going forward
After the issue is resolved, set a habit of checking your credit report periodically and enabling credit monitoring alerts if your bureau offers them. Treat identity documents like financial passwords. The fewer places they are stored, forwarded, or casually uploaded, the lower your risk.
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