Rs 8.85 Lakh Loan Scam: 5 Money Lessons Every Investor Should Know

Last Updated:October 04, 2025, 10:26 IST

A middle-class man in Rajkot, Gujarat, fell victim to a fraud worth Rs 8.85 lakh by an individual who promised to secure his loan approvals.

A middle-class man in Rajkot, Gujarat, fell victim to a fraud worth Rs 8.85 lakh by an individual who promised to secure his loan approvals. According to the Times of India, after receiving loan approval messages via WhatsApp, the man transferred Rs 9.35 lakh to the fraudster’s bank account as a processing fee and login charge. He later realised he had been cheated when no loan amount was disbursed, and he only received a refund of Rs 50,000.

The naive loan seeker was duped of Rs 8.85 lakh, facing severe financial strain due to multiple money management errors. The ordeal in Rajkot could have continued haunting him, but it also serves as a hard lesson for others navigating the personal loan market. Here are five key money lessons from the unfortunate story of the man who was robbed by a fraudster posing as a lender.

5 Money Lessons Every Investor Should Know

Processing Fee: In the Rajkot case, the fraudulent lender demanded a processing fee upfront before approving the loan. While legitimate banks and lenders do charge a processing fee, borrowers should know that it is deducted from the loan amount, not paid in advance.

Commission: Scammers often ask borrowers to pay a commission, tricking them out of their money. Never pay any commission to such agents. The loan market has numerous providers who follow ethical and fair practices; always opt for these trustworthy lenders when acquiring a loan.

Bank Communication: The Rajkot man trusted the fake bank agent and fell for messages received via WhatsApp. Borrowers should remember that official bank communications are sent only through formal texts, clearly mentioning the bank’s name. You will never receive important updates or advisories from an individual’s phone number.

Loan Disbursal: Personal loans are typically disbursed on the same day of filing. Be cautious if any bank personnel claim that the disbursal will take days or weeks and require a processing fee or login charge upfront. Such claims are a strong indicator that the agent is fraudulent and attempting a scam.

Quick Loans: Today, banks offer their long-term customers various options to secure instant loans for immediate needs. Once the documents are verified, the loan amount is usually disbursed quickly. It is advised to contact bank officials directly and avoid dealing with market agents or fraudulent individuals.

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