How to File a Complaint Against a Personal Loan Fraud

Are you scared someone might take a loan in your name without your knowledge? You’re not alone. It’s happening more often than you think. Last year, personal loan fraud complaints shot up 43% across India. Fraudsters steal your money, name, identity, and peace of mind.

Here’s the tough part: the damage is already done when you finally discover it. So, how do you fix it? How do you file a complaint that gets noticed?

This guide explains everything in simple steps, with real examples, legal remedies, and expert know-how.

Why Is Personal Loan Fraud So Common Today?

More people now borrow money online. Lenders don’t always verify everything. Many fake apps are still live. Plus, scammers know how to make their offer sound very real. They trick people into sharing OTPs or signing digital loan papers.

Some frauds happen even when you didn’t do anything. Your details may be leaked from old job portals or banking forms. Once that happens, they apply for loans in your name.

Fraudsters usually:

• Show quick loan approvals with no documents
   
• Ask for money to “release” the loan.
   
• Use forged salary slips or fake bank accounts.
   
• Call you as bank staff and make you pani.c

These scams are very targeted. Most victims don’t even realise until recovery agents start calling. Many end up repaying lakhs just to save their credit score.

How Do You Fight Back? A Clear Complaint Filing Plan

Step-by-step process that actually works

Here’s how to act fast and save yourself:

Don't delay the police part. When money is stuck in fake accounts, cyber cells can freeze them quickly.

Example: Let’s say you find a ₹2,50,000 loan in your name

• EMI of ₹8,000/month auto-debited
   
• PAN used for loan processing
   
• No documents signed by you

In this case:

• File police FIR
   
• Write to bank and get complaint number
   
• Register on RBI CMS portal
   
• Also alert credit bureaus (like CIBIL)

Banks may take 2–4 weeks, but RBI complaints often speed things up.

What Happens If Loan Fraud is Not Stopped Early?

Fraudsters may do multiple loans. One case from Mumbai saw a man’s credit card used for ₹4,00,000 while three loans totalling ₹6,00,000 ran simultaneously.

If you don’t act, this is what happens:

Example: ₹5,00,000 loan in someone’s name

The damage? Nearly ₹1,00,000 lost in interest.

What Are Some Indian Techniques That Help?

Read More – These 5 Common Lies Loan Agents Tell

These are real, proven moves.

1. Freeze your credit – Ask CIBIL to block new credit lines.
    
2. Use Equifax alerts – Register for email alerts for any new loan.
    
3. Collect proof – Email screenshots, call recordings, FIR copies help.
    
4. Follow-up weekly – Many banks delay replies. Escalate every 7 days.
    

Try using written letters over calls. Banks respond faster when something is in writing.

Top Mistakes People Make While Reporting Loan Fraud

1. Calling customer care only: Doesn’t work. Use written complaints.
    
2. Not filing FIR: No FIR = no proof.
    
3. Ignoring recovery agents: This creates default in your record.
    
4. Waiting too long: Most frauds spread if you delay.
    

Another Example: Fraud EMI case

If he had acted in month 1, police could have frozen the account.

How to Protect Yourself from Future Loan Frauds

• Never share Aadhaar, PAN, or salary slip unless verified
• Do not install unknown loan apps
• Block spam callers with apps like Truecaller
• Always check CIBIL every 6 months
• Set SMS alerts for your bank accounts

Ask your HR not to send your documents over public email IDs when switching jobs. Keep your bank passbook copies offline only.

Use two-factor email login. Most identity theft starts from leaked emails.

Also Read - Personal Loan Frauds on the Rise in 2025

Most Indians Don't Know This Law Exists

Under IT Act, Section 66C, anyone using your identity for fraud can be jailed for 3 years. Police rarely apply this unless you mention it in the FIR.

Also, Section 420 IPC (cheating) applies for forged documents.

These codes give weight to your complaint. Mention them directly in your letter. Most police officials will then act faster.

Conclusion

Personal loan fraud is not just a small mistake—it can ruin your financial life. One fake loan can damage your CIBIL score, make banks reject your genuine loans, and even affect your job background checks. But the truth is: you’re not helpless.

Every fraud leaves a digital trail. If you act fast, file the right complaints, and follow the correct legal path, you can stop the damage, recover your money, and clear your credit history.

FAQs

1. Can I remove a fraudulent loan from CIBIL?

Yes. You must file a dispute with CIBIL along with proof. Also file a police complaint and inform the bank. Once verified, CIBIL updates it in 30 days.

2. What if I took a loan from a fake app?

Immediately file a cybercrime complaint. Also, inform your bank if you shared any account detail. RBI has warned against many fake lending apps recently.

3. Can a fraudulent loan affect my job background check?

Yes. Employers check CIBIL reports during hiring. If EMIs are unpaid, a fraudulent loan will appear as a default. That’s why early action is important.

4. Can I repay the money I paid on a fraudulent loan?

Sometimes, yes, if the complaint is early. Cyber cells recover money if the account has not yet been withdrawn. After that, refund chances drop.

5. Which Indian bank fraud department email should I use?

Each bank has a grievance redressal officer, usually available on its website. You must write to them before going to the RBI ombudsman.

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About the Author

LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?