As India’s financial landscape evolves, the Permanent Account Number (PAN) has become a critical element in securing loans, credit cards, and conducting banking transactions. While this digitization enhances efficiency, it also heightens the risk of financial fraud. Unauthorized loans linked to stolen or misused PAN details are increasingly threatening consumers, often leaving victims unaware until they receive unexpected repayment calls or legal notices.
The PAN, once solely an identity verification tool, now functions as a universal financial identifier. This simplifies credit processing, yet it also provides opportunities for scammers. Unauthorized loans can be approved using compromised PAN information, which then impacts an individual’s credit history and score. Consequently, individuals may face difficulties in securing future loans or encounter legal issues.
Why Monitoring Your Credit Report Is Essential
Regularly checking your credit report is crucial for identifying unauthorized financial activities. Credit reports summarize your borrowing history and payment behavior, including personal details, active loan statuses, repaid loans, credit card information, and inquiries made using your PAN. Major credit bureaus in India, such as CIBIL, Experian, Equifax, and CRIF High Mark, provide these reports based on data received from banks and non-banking financial companies (NBFCs).
Any loans associated with your PAN, whether authorized or not, will appear in these reports. By consistently reviewing your credit report, you can quickly spot anomalies, such as loans from unknown lenders or incorrect loan amounts. Early detection allows for prompt action, minimizing potential damage and resolving disputes more efficiently.
How to Access and Review Your Credit Report
To check your credit report, select a bureau such as CIBIL or Experian. You will need to provide your PAN and some personal information. Most bureaus offer one free credit report annually, which can be downloaded for review.
Once the report is available, carefully examine the list of loans, accounts, and lenders, noting account types, issue dates, and balances. If you find discrepancies or unfamiliar accounts, take immediate action. Look for loans from unknown lenders, accounts created in unfamiliar locations, or sudden inquiries that you did not initiate. These signs can indicate potential fraud, and identifying them early can prevent a full-scale scam.
For those who find the manual review process challenging, various fintech applications offer simplified access to credit data. Apps like OneScore, Paytm, and Cred provide user-friendly interfaces, displaying active loans, credit limits, and repayment statuses in an easily digestible format. Some of these applications also send alerts for new credit activities associated with your PAN.
Steps to Take if You Find an Unauthorized Loan
If you discover an unauthorized loan linked to your PAN, immediate action is crucial. Start by disputing the entry with the credit bureau that issued your report. Most bureaus facilitate online dispute resolution, allowing you to flag incorrect entries.
Next, contact the lender associated with the unauthorized loan to formally report the situation. Provide identity documents and a written declaration to initiate an internal investigation. In cases where fraud is confirmed, filing a complaint with cybercrime authorities or local police will help establish an official record. Informing the Income Tax Department and PAN authorities also aids in addressing the issue.
Maintaining awareness of your credit history is vital. Regular checks can protect against the rising tide of financial scams that exploit compromised PAN information.
In summary, vigilance is key in today’s digital financial world. Regularly monitoring your credit report can help safeguard your financial health and prevent unauthorized loans from affecting your credit score.
