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| Stay Vigilant: A Mislinked Loan Nightmare & Crucial Lessons for MSMEs |
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| Dear Moneylifers, |
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| Greetings! We often come across unusual and concerning cases where consumers are put at risk due to errors or unfair practices by financial institutions. One such recent case, handled by our expert counselor Mr. Abhay Datar, serves as an important reminder of why vigilance is crucial when dealing with banks and financial institutions. |
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| A member of Moneylife Foundation, approached us after repeatedly receiving SMS reminders for loan EMIs from Bajaj Finance, despite never having taken a loan from the company. Each time he complained, the company would remove his mobile number, only for the issue to resurface a few months later—this time linked to a different loan account. Concerned about potential fraud, the member checked his credit report to ensure no loans were taken in his name, which fortunately was clear. However, the company failed to provide any explanation as to how his number was getting wrongly associated with different loans. |
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 When the issue escalated, the company demanded KYC documents to verify ownership of his mobile number—a strange request considering he was not their customer in the first place. On Mr. Datar’s advice, the complainant sent a registered letter with acknowledgment to the company, summarising the issue and demanding a resolution. If the company failed to respond, he was prepared to escalate the matter to the RBI’s Integrated Ombudsman Scheme, which handles complaints against non-banking financial companies (NBFCs). |
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| This case highlights the need for consumers to stay alert and take immediate action if they receive similar messages. If you ever find yourself in such a situation: immediately deny liability in writing via email or letter; check your credit score to ensure no unauthorised loans have been taken in your name; visit the lender’s office in person for quicker resolution, if possible; preserve all communication and documents for future reference and escalate to the RBI Ombudsman if the issue persists. |
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| As many of you know, we offer free counseling and guidance on banking, insurance, mediclaim, and consumer issues, as well our housing society related matters. If you or someone you know is facing a problem or grievnace in these areas, don’t hesitate to reach out to us. More details on our counselling sessions below! |
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| Key Takaways from Our Seminar for MSMEs |
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| We recently hosted a power-packed session with Advocate Manoj Harit, a seasoned legal expert with decades of experience helping MSMEs tackle financial and legal hurdles. If you run a business, deal with banks or have ever struggled with confusing loan terms, this session was one you wouldn’t have wanted to miss! |
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| Adv Harit took us through some of the biggest mistakes MSMEs make when dealing with financial institutions—and how to avoid them. One of the key points he raised was inadequate funding—too many businesses start with less money than they actually need, assuming banks will extend credit later. The reality? That rarely happens, and it often leads to cash flow issues and financial distress. |
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| He also warned entrepreneurs about the dangers of pledging personal assets—especially their homes—as collateral for business loans. While it may seem like an easy way to secure funding, it could put your personal finances at serious risk. Another big red flag? Hidden clauses in loan agreements. If you’re not careful, you could end up paying way more in interest and penalties than you expected. Always read the fine print! |
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| A major takeaway from the session was why MSMEs must keep written communication with banks and lenders. Verbal assurances from bank officials may sound reassuring at the time, but if things go south, only written records can protect you. |
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| If you missed the session, we have put together a detailed write-up on our website, covering all the key insights. Plus, a video recording will be available on our YouTube channel in a few days, so you can catch up on everything you need to know. Stay tuned for more sessions like this, and in the meantime, read the full article, watch the video once it’s up, and share it with others who might find it useful! |
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| Counselling and Helplines |
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| Advocate Avinash Phatak has been anchoring counselling sessions on housing society matters in the absence of Mr Shirish Shanbhag and his sessions have become immensely popular. In fact, due to additional demand Adv Phatak has graciously extended his timings for the session and has offered to provide counseling from morning 11:30 am onwards on fortnightly Thursdays. |
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| As you know, we now offer regular counselling sessions on the following days: Tuesdays for banking, consumer and insurance matters with Mr. Abhay Datar; and Thursdays for housing society, property matters, Mhada, Slum Rehabilitation Authority (SRA), cessed buildings, as well as criminal and consumer litigation with Adv. Avinash Phatak. |
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| Counselling is available both in-person and via video conferencing through Zoom by prior appointment. To schedule, please call 022-35131664 or 35036925, or submit your query through our legal helpline. |
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| Please also make an effort to visit and share the links to our website, where you can read more about cases of mis-selling, fraud alerts, consumer cases and also solutions to housing society problems. |
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| Join us on WhatsApp and Telegram |
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| We realise that most members find it easier to access information on WhatsApp /Telegram etc. If you are not already on our lists, please click on this link to join – https://api.whatsapp.com/send/?phone= 917045156415&text= Hi%21+Please+add+me+to+your+broadcast+ lists+and+make+me+a+member.&app_absent=0 and follow our Telegram channel here – https://telegram.me/moneylife_foundation. |
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| Check our Free Helplines and Guides or Templates as well as our YouTube Channel, where you will find a wide repository of videos on various topics. |
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| Video recordings of all our webinars are available on our YouTube channel and will come to your inbox regularly if you hit the subscribe button. But if you want to be notified about future events through our mailing list, you do need to be a member. |
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| Moneylife TV & Helplines |
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| Financial Literacy Videos in Indian Languages: |
- Credit cards
- Online frauds
- Fallacy of gold loans and more in Marathi, Gujarati, Punjabi and Tamil, all on our YouTube channel (https://www.youtube.com/moneylifetv).
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| Get guidance and counselling through our Legal Helpline or Credit Helpline. |
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| Sucheta Dalal |
| Founder-Trustee, Moneylife Foundation |
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| Trustees: TS Krishnamurthy, Walter Vieira, Sucheta Dalal, Debashis Basu. | | | | Moneylife Foundation is registered with the Charity Commissioner of Mumbai, is an Affiliate member of OECD's International Network on Financial Education, is a Supporter Member of Consumers International, Development Partner of Advocates for International Development (A4ID), and is a winner of the 10th MR Pai Memorial Award. | | |  | | | | Donations are eligible for tax benefits under Sec 80G of the Income Tax 1961 (50% tax exemption) and MLF is registered under the Foreign Contribution (Regulation) Act, 2010. 80(G) Reg No: DIT(E)/MC/80G/685/2010-11 dated 7.2.11 effective 8.+9.2010 | FCRA Registration No: 08378138  | | | |
