Fake Loan in My Name on CIBIL: How to Report and Remove It

"My CIBIL report shows a personal loan from a lender I've never heard of, and it's 90 days overdue. I never applied for it."

A loan you did not take is identity fraud, and you are not liable to repay it. Act the same day: report it on the 1930 helpline or cybercrime.gov.in, file a police complaint, write to the lender disputing the loan, and raise a dispute with each credit bureau that shows it. Under RBI rules the bureau complaint must be resolved within 30 days, and you can escalate to the RBI Ombudsman if it is not.

Why it happens

Fraudsters typically use:

• Leaked or shared PAN and Aadhaar copies, for example from a hotel, SIM shop, job portal or loan app.
• Forged documents and photos to pass weak KYC checks.
• OTPs or video KYC you were tricked into completing, often disguised as a job or reward.
• Instant loan apps that disburse small amounts fast; see fake loan app fraud.
• Someone close to you with access to your documents.

The first sign is often an SMS about a loan, a bureau alert that your report was accessed, an unknown enquiry, or a recovery call. Sometimes it shows up only when a genuine loan application is rejected.

Step-by-step fix

1. Download all four credit reports

Get your free report from CIBIL, Experian, Equifax and CRIF High Mark; our guide on how to check your CIBIL score for free shows how. A fraudulent loan may appear at only some bureaus. For each suspicious entry note the lender, account number, date opened, amount and status. Also list enquiries you do not recognise. The codes are explained in CIBIL report codes explained.

2. Report on 1930 or cybercrime.gov.in

Call the national cybercrime helpline 1930 or file at cybercrime.gov.in under financial fraud. Describe the loan, attach the report page, and save the acknowledgement number. This creates an official record quickly.

3. File a police FIR

Go to your local police station or cyber cell with an ID, the credit report and the cybercrime acknowledgement. Identity-based loan fraud can attract offences such as cheating by personation and forgery under the Bharatiya Nyaya Sanhita, 2023 (Sections 319 and 336), and identity theft and cheating by personation using a computer under the Information Technology Act, 2000 (Sections 66C and 66D). The police decide the sections; ask for a copy of the FIR or complaint receipt. Lenders and bureaus usually need it.

4. Write to the lender

Email the lender's grievance redressal officer (the contact must be on its website) stating clearly that you did not apply for, sign or receive the loan. Ask it to:

• Share the application, KYC documents, disbursal account and call or video KYC records used.
• Mark the account as fraud, stop collection action against you, and
• Delete or correct the record with all four credit bureaus.

5. Raise a dispute with each bureau

On each bureau's dispute page, select the account and choose "account does not belong to me" or the closest option. Upload the FIR or cybercrime acknowledgement and your lender complaint. Under RBI's compensation framework (in force since April 2024), the lender has 21 days and the bureau 9 days: 30 days in all. Beyond that you are owed ₹100 per calendar day of delay, credited within five working days of resolution. More detail: CIBIL report error dispute.

6. Lock down your identity

• Lock your Aadhaar biometrics on the UIDAI website or app.
• Change net-banking and email passwords; never share OTPs.
• If the lender is an app or company you cannot trace, check whether it is RBI-regulated and report it on sachet.rbi.org.in.
• Turn on and read bureau alerts that tell you when a lender accesses your report.

7. Escalate to the RBI Ombudsman

If the lender or bureau does not resolve the complaint within 30 days, rejects it unfairly or does not pay compensation, file free with the RBI Integrated Ombudsman at cms.rbi.org.in. Attach every document and acknowledgement.

Where to report and what you get

Worked example

Arjun spots an unknown ₹75,000 personal loan, 90 days overdue, while applying for a car loan.

• 2 March: He reports on cybercrime.gov.in, writes to the lender and files disputes at the two bureaus showing the loan.
• 4 March: He gets an FIR copy and emails it to the lender and both bureaus.
• One bureau removes the account on 25 March (23 days, within time).
• The other fixes it on 21 April, 50 days after filing.
• Delay = 50 − 30 = 20 days, so compensation = 20 × ₹100 = ₹2,000, split between lender and bureau according to who caused the delay.

His score recovers once the fake 90-day overdue disappears. Before reapplying, he checks his borrowing capacity with our loan eligibility calculator.

Sample complaint to the lender

Subject: Fraudulent loan in my name – account [number] – request to mark as fraud and correct credit report

Dear Grievance Redressal Officer,

My credit report from [bureau] dated [date] shows a [loan type] account [number] for ₹[amount], opened on [date] in my name. I have never applied for, signed or received this loan, and I have no relationship with your company.

I have reported this as identity fraud (cybercrime acknowledgement [number]; FIR / complaint [number], [police station]), copies attached.

Please (1) share the application and KYC records used, (2) mark the account as fraud and stop all collection action against me, and (3) delete or correct this record with all four credit information companies within the 30-day period under RBI's framework.

Name: [ ] | PAN: [ ] | Mobile: [ ] | Bureau dispute IDs: [ ]

Regards, [Name]

What not to do

• Do not pay any part of the loan to stop calls. Payment can look like acceptance.
• Do not ignore recovery calls. Reply in writing that the loan is disputed as fraud. If agents harass you, see loan recovery agent harassment rights.
• Do not settle it. A settled tag on a loan that is not yours is the worst outcome; see remove settled status from CIBIL.
• Do not pay "CIBIL repair" agents who promise fast removal. Disputes are free, and such agents often collect fees and more of your documents.
• Do not share OTPs or documents with anyone calling to "help" with the fraud.

Once your report is clean, rebuild with the steps in how to improve your CIBIL score, and compare bureaus as explained in CIBIL vs Experian, Equifax and CRIF.

Key takeaways

• A loan you never took is identity fraud; you are not the borrower and should not pay it.
• Report on 1930 or cybercrime.gov.in and file a police FIR on day one.
• Write to the lender and dispute with every bureau that shows the loan.
• RBI requires resolution within 30 days, or ₹100 per day compensation for delay.
• Escalate to the RBI Ombudsman at cms.rbi.org.in, and lock your Aadhaar biometrics to prevent repeats.