Key takeaways
- A genuine lender never asks for money before sanctioning a loan.
- Never share OTP, PIN, CVV or screen-sharing access.
- Verify the lender is a bank or an RBI-registered NBFC before you share documents.
Warning signs
- Advance fee: asks for “processing”, “insurance” or “GST” money before disbursal.
- Guaranteed approval with no income or credit check.
- Urgent pressure: “Offer ends in 10 minutes”.
- Excess permissions: the app wants access to your contacts, photos or SMS for no clear reason.
- Link in SMS or WhatsApp from an unknown number, or a look-alike website address.
- Very short tenure and extreme interest or hidden charges, often with abusive recovery calls.
How to verify a lender
- Check that it is a bank or an NBFC registered with RBI, using the lists on the RBI website.
- Download apps only from the official app stores and read the developer details and reviews.
- Look for a physical address, a customer care number and a named grievance officer.
- Compare the offer with trusted marketplaces: see personal loans on CibilBazaar, where you apply with partner banks and NBFCs.
If you have been targeted
- Stop paying and stop responding to the scammer. Do not click further links.
- Call your bank to block the card or account if details were shared.
- Report the fraud on the National Cyber Crime Reporting Portal and call the helpline 1930 promptly, as quick reporting improves the chance of recovering money.
- Report abusive recovery or unregistered lenders to RBI and keep screenshots as proof.
Check your report afterwards for unknown accounts: how to read it and fix errors.
This article is for general information only and is not financial, legal or tax advice. Interest rates, fees and rules change, so confirm current terms with the lender or the regulator before you decide. Examples use illustrative figures. Last reviewed: October 2026.
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