PAN Misuse Alert: How to Check if Someone Took a Loan in Your Name and What to Do Next

G GOWTHAM
With the increasing digitization of financial services in India, cases of identity theft and financial fraud have also risen. One of the most commonly misused documents is the PAN (Permanent Account Number), issued by the Income Tax Department under the government of India.

If someone has used your PAN to take a loan without your knowledge, it can seriously impact your credit score and financial credibility. Here’s how you can check for misuse and take corrective action.

Why PAN Misuse Is Dangerous

Your PAN is linked to:

  • Bank accounts
  • Income tax filings
  • Investments
  • Loans and credit cards
  • Your credit history
If a fraudulent loan is taken in your name, it may:

  • Lower your credit score
  • Lead to recovery notices
  • Affect your future loan approvals
  • Cause legal and financial stress
Step 1: Check Your Credit Report Immediately

The easiest way to detect unauthorized loans is by checking your credit report from credit bureaus such as:

  • CIBIL
  • Experian
  • Equifax
  • CRIF High Mark
How to Check:

Visit the official website of any credit bureau.

Request your free annual credit report.

Verify all listed loans and credit cards.

Look for unfamiliar lenders or accounts.

If you find a loan you did not take, it could indicate PAN misuse.

Step 2: Contact the Lending Institution

If an unauthorized loan appears:

  • Contact the bank or NBFC immediately.
  • Inform them the loan is fraudulent.
  • Request written confirmation after investigation.
  • Submit identity proof and a dispute letter.
Ask them to mark the account as “fraud” in their records.

Step 3: File a police Complaint

File a complaint at your nearest police station or through the cybercrime portal:

  • National Cyber Crime Reporting Portal
Keep a copy of the FIR or complaint acknowledgment for future reference. This is important for protecting yourself legally.

Step 4: Raise a Dispute with the Credit Bureau

After informing the lender:

  • Raise a dispute with the credit bureau where the loan appears.
  • Attach your FIR copy and supporting documents.
  • Track the dispute status online.
Once verified, the bureau will remove or correct the fraudulent entry.

Step 5: Inform the Income Tax Department (If Needed)

If the misuse involves suspicious financial transactions or tax implications, report it to the Income Tax Department via their official grievance system.

How to Prevent PAN Misuse

  • Do not share your PAN unnecessarily.
  • Avoid uploading PAN copies on unsecured websites.
  • Mask your PAN when giving photocopies (write “For XYZ purpose only”).
  • Regularly check your credit report.
  • Enable SMS/email alerts for loan inquiries.
When to Seek Legal Help

If the financial damage is significant or recovery agents harass you for unpaid dues:

  • Consult a financial lawyer.
  • Preserve all documentation.
  • Do not ignore notices.
Final Thoughts

PAN misuse is a serious financial threat, but early detection can prevent long-term damage. Regularly monitoring your credit report and acting quickly at the first sign of fraud can protect your financial identity and creditworthiness.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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