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How to Check if You Have a Fake Loan in Your Name?

How to Check if You Have a Fake Loan in Your Name?

Have you been reading reports about fake loans( loans taken using forged documents)? You may ask, how can this be? An fraud uses your visage in the operation and gets a loan, the loan shows up against your name( and not the factual borrower). Again, similar fraudulent intent should have been caught during the KYC stage, but KYC violations have been relatively blatant. The lender shall be criticized for similar violations. numerous victims got to know only when they applied for fresh loans( and their operation was rejected due to poor credit score) or when they faced importunity at the hands of collection agents. Are you upset that a fake loan has been taken against your visage?

How Does a Fake Loan Affect You?

A fake loan is doubtful to be serviced. Remitment of any loan would affect your credit score negatively. Your credit score is an index of your creditworthiness. Advanced the credit score, the further creditworthy you’re and the lesser your chances of getting a loan. A poor credit score will negatively affect your chances of getting a loan.

How Do I Find out if There Is a Fake Loan in My Name?

There’s a veritably simple way to find out. Download a credit report from a Credit Bureau( also known as Credit Information Companies). A credit report has information about all your loans, indeed the fake ones. However, take remedial action, If you find a fake loan entry in the report.
I know you have numerous questions. What are credit divisions? How do they get all this information? What information do credit reports have? How do I download the report and how much does it bring? If my credit report has a fake loan entry, what should I do? Let’s find out.

What are Credit Bureaus?

The credit divisions( CBs) maintain the credit history of borrowers. You can download similar history from the CBs in the form of a credit report. A credit report contains details about

  • Your credit score
  • Your particular contact details
  • Account details( loans, credit cards, and prepayment status). A fake loan would show up then.
  • Inquiry information

Using your credit data, the CBs calculate your credit score using a personal medium. While the exact scoring model isn’t bared, the major factors considered for computation are

  • Your payment history If you have been paying your pretenses on time, your credit score gets appreciatively affected.
  • Credit limit application Advanced application affects credit scores negatively.
  • Chance of relaxed loans( compared to overall loans) Advanced chance is considered a negative.
  • Too numerous loan warrants and loan operations Points to credit hunger. Not good.
  • quaint If you have been servicing debt responsibly for a long time, this affects your credit score favorably.

There are 4 credit divisions in India. CIBIL is the oldest and the most popular. Each CB can have a different score range. For case, the CIBIL score can range from 300 to 900. A CIBIL score over 750 is considered good and increases your chances of getting a loan. A good credit score can qualify you for a low-interest rate too. A poor credit score can affect your loan chances negatively.

Where Do Credit Bureaus Get All This Information From?

From the lenders. When you take a loan, the fiscal institutions( banks NBFCs HFCs) are needed to report the sale to all the credit divisions. The lenders also report the prepayment status for your loan/ credit card account and whether your account is regular or overdue. Hence, the CBs have information about all your loans. also, whenever you apply for a loan or a credit card, the lender checks your credit score as part of due industriousness.

Where Can I Download a Free Credit Report From?

Downloading a credit report from CB will bring you Rs 400- 500. You wonder if you must shell out a plutocrat just to check if a fake loan has been taken on your name. Not fair. Don’t worry. RBI regulations allow you to download a free credit report per timetable time per credit office.
There are 4 credit divisions in India. therefore, you can get 4 free credit reports( 1 per Credit Bureau) each timetable time( January 1- December 31). You can use these credit reports to check if a fake loan has been taken against your visage.
As per RBI rules, the CBs must give you the full report( and not an abridged interpretation). Hence, you need not worry about report quality only because it’s free. Indeed piecemeal from fake loan enterprises, there are good reasons to check your credit score regularly, especially if you plan to take out a loan/ credit card soon.
You want to figure out whether a fake loan has been taken under your name. As we know, all lenders must report the loan deals to CBs. Hence, if a fake loan has been taken in your name( using forged documents), the loan would show up in your credit report.

What Do I Do if I Find an Entry for a Fake Loan?

You can raise a disagreement with the credit office. still, note that the credit office can’t make corrections on its own. It isn’t supposed to. It’ll further your request to the concerned lender( fiscal institution) and stay for the feedback.
Given the way effects work, you must also reach out to the lender directly and raise an alarm.

Make some noise on social media too. My experience suggests this helps expedite effects.
Given that the lender under question may formerly be apprehensive of the situation, when you reach out to them for explanation and rectification, it can try to befog effects by making unreasonable demands( asking you to partake all kinds of documents). Then’s an illustration.

Stand your ground. Don’t partake in documents similar to your visage card, Aadhar card, etc. A fake loan would have been issued using fake/ forged documents. In such a case, the lender won’t have needful documents. still, if you partake the correct documents with the lender( grounded on lender request), the lender will have what it didn’t have. Can be used against you. Hence, exercise discretion while dealing with the lender.

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