Loan Fraud Alert: How To Find Out If Someone Has Taken A Loan In Your Name

A spike in identity misuse since mid-2024 has pushed credit checks to the centre of borrower concerns. Rising complaints across national portals have revived questions on how personal documents get exploited.

Identity theft gripped public attention in mid-2024 when 36,075 banking fraud cases appeared in the RBI Annual Report for 2023 to 2024, even as fraud value dropped by 46.7 percent. This shift reopened a core worry for borrowers who fear that an unknown loan might exist in their name without warning. The development placed credit histories and document safety under renewed scrutiny.

How To Check a Loan Taken In Your Name?

The rise in identity misuse received wider attention after the Ministry of Home Affairs recorded around 29,000 Aadhaar-linked fraud complaints on the National Cyber Crime Reporting Portal in its July 2024 update. 

Many complaints described biometric misuse, where fingerprints or Aadhaar details were copied and used for digital transactions. In several investigations, this misuse directly led to unauthorised loans being taken in the victim’s name.

One clear case was reported in Andhra Pradesh, where a group used Aadhaar and PAN details of women, along with their biometric data, to take unauthorised loans running into lakhs of rupees through fake self-help groups. This confirmed that stolen or cloned biometrics can directly result in loan approvals when systems rely on Aadhaar-based verification.

Another update appeared in a Loansjagat article published in November 2025, which reported that ₹36,014 crore in financial frauds were recorded during 2023–2024. The report also noted that complaint levels on the SACHET portal remained high.

SACHET, run by the Reserve Bank of India, is the RBI’s public complaint portal for reporting financial frauds, illegal lending apps, unauthorised deposit schemes, and other suspicious financial activity. High volumes on SACHET indicate gaps in document checks and identity-verification systems.

The trend created a public need for practical steps to detect loans taken using stolen documents.

What Identity-Based Loan Fraud Means For Borrowers?

Identity-based loan fraud occurs when a criminal uses another person’s PAN, Aadhaar or signature copy to open a loan account. Police records showed many such incidents in 2024 and 2025. One case reported in Dehradun involved a forged Aadhaar and PAN used to secure a loan of more than three lakh rupees.

Cases now include instant digital loans, microfinance loans and branch-issued consumer loans. The method varies, but the result remains the same: damaged credit, harassment calls and long resolution cycles. Public concern increased because fraud detection often lags behind loan approval.

This naturally leads to a larger pattern that ties current events to older fraud cases.

How Past Fraud Alerts Help Explain The Current Pattern?

Earlier coverage on digital lending scams highlighted fake mobile loan apps that harvested contact lists and photographs. Identity misuse forms another part of the same chain. Instead of harassment by app operators, the victim confronts an unknown EMI reminder or a sudden drop in credit score. The shift from digital loan abuse to document misuse pushed banks to revisit verification rules.

Now the focus turns to how the government and lenders reacted in earlier cycles of such fraud.

Government And Bank Response In Similar Situations

In 2024 and 2025, the RBI told all banks and NBFCs to improve verification and fraud checks. The main instruction was the RBI “Master Directions on Fraud Risk Management in Regulated Entities” (15 July 2024). These directions asked lenders to check customer details more carefully, review repeated KYC mismatches, and send doubtful cases to their fraud-risk teams. They also required banks to report fraud cases to the police and to RBI without delay.

The Ministry of Finance also advised lenders to be strict with biometric checks in Aadhaar-based loans and to report any KYC mismatch as soon as it is found.

By late 2024, major banks such as SBI, HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and Bank of Baroda added extra checks. These included taking fresh ID scans, reviewing repeated KYC errors, and setting automatic alerts if many enquiries were made on the same PAN within a short time.

These steps match the growing public need for a clear guide on how to check if a loan has been taken in someone’s name, especially after the rise in identity-misuse cases.

Government Portals That Support Fraud Reporting

The table below outlines the official platforms created to respond to identity-based lending fraud. These portals gained prominence after the rise in 2024 cases.

A few closing points help place the trend in a wider credit environment.

Conclusion 

Identity misuse has grown alongside the expansion of digital credit. RBI noted in its 2023 to 2024 review that several large frauds uncovered during the year had taken place many years earlier. This highlights the need for regular personal credit checks, strict Aadhaar security and verification after any unusual message or enquiry alert.

Borrowers now face a new reality where fraud may leave no trace until a recovery call arrives. Regular monitoring stands as the most effective defence until stronger verification systems arrive.

If an extended version with state-wise NCRP patterns or bank-wise screening changes is required, it can be prepared for a follow-up edition.
 

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About the Author

LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.