Financial Safety 
Is Someone Taking Loans in Your Name?
Imagine getting collection calls for a loan you never took. Unfortunately, this is the case with many people and you should be aware of it.
I n 2022, Bollywood actress Sunny Leone claimed that someone had taken a loan in her name. She tweeted that another person had used her PAN card to apply for it. Hers was not the only such case, though. Multiple people have experienced this as well. Either they see that their credit score has suddenly dropped, or they receive calls for repayment of loans that they never applied for. This leaves them feeling anxious and helpless. But how does this happen?
How Can Someone Take Loans in Your Name?
While most banks and NBFCs have strict processes to disburse loans, many provide them with minimal documentation. This generally consists of just the Aadhaar and PAN card. The PAN card is the most basic financial document, and no legitimate loan can be provided without it. However, several lenders will accept any PAN card without verifying the identity of the person providing it.
With online loan processes, a soft copy of the PAN card is required. So, if you have shared your PAN card anywhere digitally, there’s a chance it can land up in someone else’s hands. They can easily use your PAN card’s soft copy to apply for loans.
The PAN card is tied to credit reports such as CIBIL. Not only does using the PAN card for a loan application register a credit enquiry, but it also puts a record if the loan is approved. And those who are using the PAN cards of others usually have no intention to pay back the loan they took. So, if your PAN card has been used by someone else, it’s your credit score that gets affected. You’ll probably have difficulty when you want to apply for a loan or credit card in the future.
How To Find Out If Loans Are Being Taken in Your Name
The most significant way you can check if loans are taken in your name is through credit bureaus. It’s good to make it a practise to check bureaus like Experian or CIBIL once a week.
It’s relatively easy to sign in to them, and you can access your full credit report. Over here, you can see not just your credit score, but also credit enquiries and records of ongoing loans. By making this a regular exercise, you can spot any anomalies in your report quickly before you face any consequences.
Also Read: Beware of Loan Apps: How to Avoid Financial Traps Online
What to do if There Are Loans in Your Name
1. Raise a dispute with your credit bureau. Experian, CIBIL, and other major credit bureaus offer the option of raising disputes on their portals. While doing this, it’s important to provide accurate details of suspicious records on the credit report.
2. Contact the lender behind the loan. The name of each lender will be mentioned on credit reports when there is a loan. When the loan isn’t one you’ve taken, reach out to the lender and enquire about it. Provide evidence that supports the fact that you didn’t take the loan and request them to remove it from the credit bureau.
3. File a complaint with the Cyber Cell. In case there is no resolution after raising disputes with credit bureaus or lenders, a cybercrime complaint is the best option. Gather all the supporting evidence you must prove that another person is taking a loan in your name.
With everything taking place digitally, it’s quite easy for someone to take a loan in your name. They just need access to your PAN card, which can happen through several different ways. However, by regularly checking your credit report, you can stay vigilant and take action as soon as suspicious activity is noticed.
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