Gujarat family hit by ₹4 crore loan fraud: 5 money lessons one can learn from this

Personal loans: A shocking case has come to light where two accused were arrested for taking loans and credit cards in some others' name before stopping repayments, eventually pushing victims into a whopping debt of ₹4.3 crore.

In this bizarre case, Ahmedabad-based accused with the help of loan agent, opened several accounts in different banks and arranged for more than 24 loans and several credit cards in the names of victim and his family members, The Times of India reported.

Initially, EMIs were paid to maintain trust but later they were stopped. By mid-2025, the dues from these loans and credit cards added upto ₹4.3 crore.

There are several money lessons we can learn from this episode.

5 key money lessons to learn

I. Using illegitimate documents: In this case, one family allowed their documents to be used by someone else for raising loans. This is a strict no-no for anyone. You should not never share your personal documents with anyone for the purpose of taking a loan.

II. Raising too much of loan: Not one or two but a total of 24 loans were raised in the names of victims. No wonder then the total dues ballooned to a whopping ₹4.3 crore. This is an unhealthy practice and must be avoided at all costs.

III. Seeking lender's help: In this case, victim agreed to help the accused in return of a favour, helping him repay the house loan. Rather than seeking help from someone-- who later abused his position to harm the victim – the borrower should seek help from bank or another lender so as to legitimately repay the loan.

IV. Proactiveness is the key: When you realise that the other person is trying to take undue advantage of his position then you could take a prompt action and resolve the issue prematurely. In this particular case, the loans were taken long ago and were allowed to grow in size over the years.

Eventually, they grew massive and crossed ₹4.3 crore before a police complaint was filed.

V. Monitor credit history through net banking and credit report: It is advisable to keep monitoring your credit history through net banking (for total loans and credit card bills) and credit report which you could acccess on credit information company's website.

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