Fact CheckedLast Updated: 5 July 2026Reviewed By: ComplaintAdda Editorial Team
Personal Loan Fraud
Personal loan fraud includes fake lending apps that demand an upfront 'processing fee' and never disburse the loan, and unregistered NBFCs charging illegal interest rates. RBI requires all digital lenders to be registered.
What Is It
Fraud involving unregistered or fake lending apps/agents that collect fees for a loan that is never disbursed, or that impose illegal terms and harassment after a small genuine disbursal.
When To Use It
Report if you paid an upfront fee and received no loan, or if you are facing harassment/unfair interest demands from an unregistered lending app.
Step-by-Step Process
- 1Stop all further payments to the lender/app immediately.
- 2Check whether the lender is a registered NBFC on the RBI website; if not, it is operating illegally.
- 3File a complaint on the RBI's Complaint Management System (cms.rbi.org.in) or Sachet portal (sachet.rbi.org.in).
- 4If money was paid via UPI/card, also call 1930 and file on cybercrime.gov.in.
- 5Report harassment (repeated abusive calls) to the local police cyber cell as well.
Documents Required
- App name and screenshots of the loan offer/chat
- Payment proof of the upfront fee
- Any loan agreement received
- Record of harassment calls/messages
Fees
Free to file with RBI, Sachet portal, or the Cyber Crime Portal.
Processing Time
RBI complaints are typically processed within 30 days; parallel cyber crime investigation may take longer.
Important Tips
- A genuine lender deducts fees from the loan amount, never asks for advance payment before disbursal.
- Always verify NBFC registration on the RBI website before sharing any documents.
- Never share Aadhaar, PAN, or bank OTP with an unverified loan app/agent.
Frequently Asked Questions
Search for the lending entity in the RBI's list of registered NBFCs; if it is absent, treat any request for advance payment as fraudulent.
This article is for general information only and does not constitute legal advice. Always verify with the official source before acting.