If you have been scared off by stories of loan fraud, that caution is well earned. Fake apps, advance-fee scams and abusive recovery agents have hurt a lot of people, and the coverage they get makes the whole industry look the same.
But the caution becomes expensive if it stops you borrowing at all — or worse, if it makes you unable to tell the difference and you end up trusting the wrong one anyway. So here are the concrete signals, in both directions.
Red flags — walk away
- They ask for money upfront to "release", "process" or "insure" your loan.
- They ask for your OTP, card PIN, UPI PIN or net-banking password. No genuine lender ever needs these.
- You are told to decide immediately or the offer disappears.
- An app demands access to your contacts, photos or gallery before it will lend.
- There is no written sanction letter setting out rate, tenure and charges.
- The company has no verifiable office address and no landline.
Green flags — signs of a real partner
- Everything is in writing — the rate, the tenure, the processing fee, the penalties.
- They tell you the total cost, not just the monthly EMI.
- They are willing to say no, or to tell you to wait and improve your profile first.
- You can find and visit a physical office, and reach a named person.
- The final lender is a bank or RBI-registered NBFC, and you are told which one.
- Nobody pressures you. A real offer is still there tomorrow.
Consultant or lender — know which you are talking to
A loan consultant or DSA does not lend its own money; it compares lenders, negotiates and handles the paperwork, and the actual loan comes from a bank or NBFC. That is a legitimate and useful role — but you should always know which one you are dealing with, and who is finally lending to you. If that is unclear, ask directly.
LoanBandhu is a consultancy: we are not a bank or an NBFC, we do not lend our own money, and our guidance is free to you. The lender is always named before you sign anything.
If something has already gone wrong
Stop paying immediately, keep every message and receipt, and report it — to your bank, to the national cybercrime portal, and to the police. Acting early matters far more than acting perfectly.
How LoanBandhu helps
We put the rate, the charges and the lender's name in front of you before you commit, and we will tell you when the right answer is to wait. If you are unsure about an offer you have received elsewhere, call us and we will read it with you — no obligation.