During Diwali, online sales, or other festivals, people buy more things. Some also take loans for shopping, gifts, or home needs.
Scammers know this. They send fake loan offers and trap people with easy approval and big discounts.
One report says, during festivals, loan fraud cases go up by 30–40%. 📈
⚠️ Types of Loan Scams You Should Know
🎓 1. Student Loan Forgiveness Scams
Scammers send messages saying your student loan will be cancelled if you apply now. They ask for your documents or fees.
Some things they say:
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“Your student loan will be forgiven soon!”
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“Apply fast before the offer ends!”
👉 These are student loan forgiveness scams. They are common in the U.S. but now are seen in India too.
🎓 If you’re in the U.S., always confirm student loan forgiveness programs only from official sources like
👉 https://studentaid.gov
💼 2. PPP Loan Scam
Scammers offer business loans under fake PPP (Paycheck Protection Program). They ask for:
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Online form
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Advance payment
Then they disappear.
👉 This is called a PPP loan scam and targets small businesses and freelancers.
🏠 3. Home Loan Scams
Festivals are a good time for home buying or repairs. Some fake agents offer:
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Low interest home loans
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No paperwork
They ask for PAN, Aadhaar, and bank info.
👉 Be careful. These are home loan scams.
4. US Loan Services Scam
People also get emails from fake names like “US Loan Services” with messages like:
“You are approved for student loan forgiveness!”
👉 This is part of the scams on student loan forgiveness. Always check before you believe any such offer.
✅ Easy Tips to Stay Safe from Loan Scams
🔐 1. Never Share OTP, PAN or Aadhaar
Even if the caller says they are from a bank, never give personal info on phone or unknown links.
📩 2. Don’t Click on “Pre-Approved Loan” Messages
SMS or WhatsApp messages offering fast loans are usually scams. Don’t click on links.
📲 3. Use Only Trusted Apps or Websites
Apply for loans only from official bank websites or RBI-registered NBFCs.
✅ Check this list: https://rbi.org.in
💸 4. Never Pay Advance Fees for Loan
If someone asks for money before giving the loan, it’s most likely a scam.
🧠 5. Double Check “Student Loan Forgiveness” Offers
Some scammers say:
“Student loan forgiveness is real. We are official partners.”
👉 Don’t believe without checking. Visit: https://studentaid.gov
📞 6. Report Any Fraud
If you see a scam or feel something is wrong, report it.
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In India: https://cybercrime.gov.in
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In the U.S.: https://studentaid.gov
📌 Real Example:
Example: Raj got a message during Diwali:
“You are approved for a ₹1.5 lakh home loan. Click here to claim it.”
He clicked, shared his PAN and paid ₹1,000 as a fee. After that, the scammer blocked him.
👉 This is how thousands of people get trapped in loan scams.
✅ Do’s & Don’ts Table
| ✅ Do This | ❌ Don’t Do This |
|---|---|
| Use official bank/NBFC websites | Never trust unknown messages |
| Keep personal info safe | Don’t share OTP or Aadhaar |
| Check RBI/NBFC registration | Avoid WhatsApp loan offers |
🛠️ Want to Check Your Loan Eligibility or EMI?
If you’re planning to take a loan during this festival or sale season, make sure to calculate your EMI and check your loan eligibility in advance.
You can use our free tools to make smarter financial decisions 👇
Personal EMI Loan Calculator Check Loan Eligibility
FAQs — People Also Ask:
⚠️ These FAQs use keywords people actually search for on Google, and are different from the main content. Optimized for SEO & Google snippets.
Q1. How do I know if a student loan forgiveness offer is real❓
A1. Only trust official government sites like studentaid.gov. If someone asks for payment or urgent action, it’s likely a scam.
Q2. Can I get a student loan forgiven in India❓
A2. No official student loan forgiveness program exists in India as of now. Be cautious of anyone claiming otherwise.
Q3. Is PPP loan forgiveness a scam❓
A3. PPP loan forgiveness is real in the U.S., but scammers use fake messages to trick people. Always verify through government sources.
Q4. What are signs of a loan scam❓
A4. Fake promises, advance fee demands, no official website, or pressure to act fast — these are all scam signals.
Q5. Are home loan offers during Diwali safe❓
A5. Some real banks give offers, but scammers also become active. Always apply through official websites or bank branches only.
Q6. Can loan apps steal my data❓
A6. Yes, many fake loan apps collect personal data. Only use apps listed on Play Store and published by known banks or NBFCs.
🔚 Conclusion:
Loan scams are increasing, especially during festival and sale seasons. Whether it’s a student loan forgiveness scam, PPP loan fraud, or a home loan trap — don’t trust any message or call without checking.
✅ Stay alert
✅ Use only trusted sources
✅ Protect your money and data
| Personal EMI Loan Calculator | Check Loan Eligibility |