How can I avoid scams related to personal loans?

To protect yourself from personal loan scams in India, especially with digital lending platforms growing rapidly, it’s important to stay alert and follow a few essential steps in 2025:

• Verify the Lender: Always check if the lender is registered with the RBI or is an authorised NBFC. Look for a physical office address, a secure website (with “https”), and genuine customer reviews. Avoid lenders who communicate only through WhatsApp, Telegram, or SMS, or who lack clear contact details.
• Never Pay Upfront Fees: Genuine lenders do not ask for processing fees or advance payments before loan approval. All legitimate charges are usually deducted from the loan amount after disbursal.
• Beware of Unsolicited Offers: Be cautious of unexpected calls, emails or texts promising instant loans or guaranteed approval. Legitimate lenders always conduct credit and income checks before approving loans.
• Protect Your Personal Data: Never share sensitive information such as OTPs, PAN, Aadhaar or bank details with unknown sources or on unofficial platforms. Legitimate lenders will never request such details informally.
• Read All Terms Carefully: Before you sign anything, read the loan agreement, interest rates, and terms of repayment.
• Report Suspicious Activity: Notify your bank, the National Cyber Crime Portal, or your local authorities right away if you think someone is scamming you.
  Staying vigilant and following the above steps can help you avoid falling victim to personal loan fraud.