Each citizen’s PAN card serves as a key identifier for most financial transactions in India, linking income, investments, bank accounts and loans into a single identity.
This central role makes PAN indispensable for tax compliance and financial transparency, but also makes it a prime target for fraudsters. With just a copy of the PAN card, fraudsters can use the information to open bank accounts, apply for credit cards or even take out loans, often without the individual’s knowledge.
Such abuse usually only comes to light when victims receive collection calls, credit score alerts, or tax notices for transactions they never made. Several cases have been reported with similar incidents where victims complained that unauthorized loans were secured in their name, which subsequently affected their financial health significantly.
Here is a step-by-step guide on how to check if someone has taken a loan by misusing your PAN and the steps you should take to avoid such a scam.
How to Check PAN Card Loans?
- An individual can check if their PAN has not been misused by simply generating a credit report.
- You can access your credit report on the official websites of credit institutions such as CIBIL, Equifax, Experian or CRIF High Mark.
- Enter your PAN number and other basic details on this website and then download your free annual credit report (each bureau offers one free report per year).
- You also have the option to visit fintech platforms like Paytm or Bank Bazaar to check your financial reports.
You can check your credit report to see if any loans have been made under your name.
Here’s what to look for
- You can check all active loans and credit cards under your name.
- Check the loan amount, the lender and their repayment status.
- Be wary of unknown accounts or loans you don’t recognize, as these could be signs of fraud.
- If accounts are opened in cities you’ve never lived in, that’s also a problem.
- A sudden drop in your credit score is another strong warning sign of fraud.
How can you protect yourself from such a scam?
- Make sure you never share your PAN details on unsecured websites or with unknown agents who might misuse it.
- Check your credit report thoroughly. Remember to build your credit score and look for red flags at least twice a year.
- Enable SMS/email notifications from your bank for loan approval.
As several controversies have emerged regarding the misuse of PAN cards to get personal loans through fintech apps, it has become increasingly important for individuals to remain vigilant and ensure that their personal information is not compromised.
