How do I protect my personal information during the loan process?

Protecting your personal information during the personal loan process is essential. With sensitive data like your Aadhaar, PAN, bank details and income documents involved, taking proactive steps is crucial to prevent misuse or fraud.

Ways to safeguard your information during the loan process:

• Apply only through official and secure channels: Use the lender’s official website, authorised branches, or regulated digital lending platforms. Avoid unknown websites or third-party agents who lack proper credentials. Always check if the lender is regulated by the Reserve Bank of India.
• Verify the authenticity of representatives: If approached by an agent or intermediary, ask for identification and authorisation from the lender. Never hand over original KYC documents to unauthorised individuals, and always self-attest copies with the stated purpose.
• Be cautious with document sharing: Never send private information or sensitive documents via unprotected email, messaging apps or public Wi-Fi networks. When sending or uploading documents, always use secure, encrypted connections.
• Consent and privacy: Ensure you understand and provide explicit consent for data collection. Reputable lenders will present a clear privacy notice explaining how your data will be used, stored, and protected. You have the right to deny or withdraw consent at any stage.
• Monitor your credit report: Check your credit report frequently for any unauthorised loans or enquiries. By identifying suspicious activity early on you can take quick action and minimise possible harm.
• Use multi-factor authentication: Where available enable two-factor authentication for your online loan account to add an extra layer of security.
• Report suspicious activity: If you come across any irregularities or suspect misuse of your documents, report it immediately to the lender and relevant authorities.