What to do if someone takes a loan using your PAN

Representative image

• PAN misuse can lead to fraudulent loans in your name
• Check all credit reports and dispute any unknown loans promptly
• File police complaints, avoid paying EMIs for fraudulent loans

Did our AI summary help?

Discovering that a loan exists in your name when you never applied for one is unsettling. For many people, the first sign is a rejected loan application, a sudden drop in credit score, or calls from recovery agents asking for EMIs you don’t recognise.

PAN misuse for loans is not rare anymore. With leaked data, forged documents and lax verification at some lenders, fraudsters can take personal loans, buy-now-pay-later credit, or even credit cards using stolen PAN details.

The good news is that Indian systems do allow you to fix this — but only if you act methodically.

First, confirm whether a loan actually exists

Before panicking, pull your credit report from all major bureaus — CIBIL, Experian, Equifax and CRIF High Mark. Do not rely on just one report.

Look for loans or credit cards you don’t recognise, unfamiliar lenders, or enquiries you never initiated. Pay attention to small-ticket loans too; fraudsters often start with short-tenure personal loans or digital credit lines because they clear faster.

If the loan appears across multiple bureaus, it confirms active reporting by a lender.

Inform the lender in writing immediately

Once identified, contact the lender whose name appears on the loan. Do not rely on phone calls alone.

Send a written complaint stating clearly that the loan was fraudulently taken using your PAN without your consent. Ask for the loan to be marked as disputed due to identity theft and request copies of the application documents used.

This step matters because lenders are obligated to investigate once formally notified. It also creates a paper trail showing you did not ignore the issue.

File a police complaint — even if it feels uncomfortable

A police complaint or FIR is essential. Many people avoid this step, assuming it will be time-consuming or futile. But without it, lenders and credit bureaus rarely act decisively.

File a complaint for identity theft and financial fraud, mentioning PAN misuse specifically. In many cities, this can be done through the cybercrime portal or at the local police station.

This document becomes your strongest defence if the issue escalates to legal notices or recovery action.

Raise a dispute with credit bureaus

Each credit bureau allows you to dispute incorrect information online. Submit disputes attaching your written complaint to the lender and the police complaint number.

Ask for the loan to be flagged as “under dispute due to fraud” while the investigation is ongoing. This prevents further damage to your credit profile and signals future lenders that the account is contested.

Under RBI-backed grievance norms, lenders must respond within a defined timeline once disputes are raised.

Do not pay even a single EMI

Many victims make a critical mistake here. They pay one EMI “to buy time” or stop recovery calls.

The moment you make a payment, it weakens your claim that the loan is fraudulent. It can be interpreted as acceptance of liability.

If the loan is not yours, do not pay. Focus on documentation and dispute resolution instead.

Escalate if the lender delays or refuses

If the lender does not respond within 30 days or continues to treat the loan as valid, escalate the complaint.

Approach the lender’s grievance cell, then the banking ombudsman or RBI’s CMS portal, depending on whether the lender is a bank or NBFC. Escalation backed by a police complaint usually triggers faster action.

In parallel, keep credit bureaus updated with proof of escalation.

Lock down your PAN and credit profile

Once misuse is detected, prevention becomes as important as correction.

Register for credit freeze or credit alert services with bureaus so no new loan can be issued without verification. Monitor your credit report every few months for fresh enquiries.

Avoid sharing PAN copies casually. Where possible, submit masked PAN copies and write the purpose and date on the document to prevent reuse.

If Aadhaar is linked, ensure it is locked when not needed.

How long does resolution take?

In straightforward cases, fraudulent loans can be removed from your credit report within two to three months. Complex cases involving digital lenders or forged physical documents may take longer.

What matters is consistency. Regular follow-ups, documented communication and escalation usually work.

PAN misuse is frightening because it attacks your financial identity, not just your bank balance. But the system does recognise identity theft — as long as you assert it early and clearly.

The biggest mistake is waiting, hoping the problem will resolve itself. It won’t Act quickly, document everything, and force the system to acknowledge that the loan was never yours.