Bajaj Finance Scam

My Experience with Bajaj Finance OD Loan

4 months ago, people from Bajaj Finance kept calling me and asked me to take an overdraft (OD) loan. At first, I clearly said I don’t want any loan.

But they continued calling me every day again and again. Somehow, they convinced me to take the OD loan.

They asked for all my details like PAN, Aadhaar, etc. But they did not clearly explain the hidden charges. They offered me a maximum loan of ₹10 lakh. After taking the loan, they deducted many charges like:

• 8 years OD charges
• Insurance charges
• Processing fee

In the end, I had to bear all these costs from my pocket. If not, I had to pay interest on the amount.

Even when I paid everything and did not use the OD amount, they kept calling me and pressured me to use the money. If I don’t use it, they ask me to close (foreclose) the loan, and the foreclosure charges are around ₹50,000.

This was my experience. Please be careful before taking an OD loan from Bajaj Finance.

How to Protect Yourself When Taking Loans

Consumer lending in India has expanded dramatically in the last decade, bringing genuine convenience alongside genuine risks. Before signing any loan agreement — whether from Bajaj Finance, any NBFC, or a bank — the following steps will help protect you from unpleasant surprises.

First, always read the full loan agreement before signing, not just the headline interest rate. The key numbers are the Annual Percentage Rate (APR), which includes all fees and charges, and the total cost of credit over the loan term. A loan advertised at 12 percent per annum may cost significantly more when processing fees, insurance premiums, and prepayment penalties are factored in.

Second, never agree to insurance products bundled with your loan unless you have read the policy and genuinely want the coverage. Bundled insurance is a significant source of hidden cost in consumer lending. You have the legal right to refuse bundled products in India.

Third, download or take a screenshot of your repayment schedule on the day you take the loan. This protects you if disputes arise later about what was agreed. Keep all loan documentation, including the sanction letter, repayment schedule, and any communication about charges or changes to terms.

If you experience issues with any lender — whether hidden charges, harassment from recovery agents, or errors in your credit report — you can file a complaint with the Reserve Bank of India's Complaint Management System (cms.rbi.org.in) or approach the Banking Ombudsman. Know your rights as a borrower. They are more substantial than most lenders will tell you.

How to Protect Yourself From Financial Fraud

The Bajaj Finance experience highlights tactics that are common across multiple financial companies. Here is how to protect yourself:

• Never accept products you did not ask for – If a company sends you a credit card, loan card, or OD facility without your explicit consent, report it to the RBI Banking Ombudsman immediately.
• Read all SMS alerts – Banks and NBFCs are required to send SMS confirmations for account changes. If you get an alert for something you did not initiate, call the customer care number immediately.
• Check your CIBIL score regularly – Unauthorised loan accounts show up in your credit report. Check it free once per year at CIBIL.com.
• Know your rights – Under RBI guidelines, you have the right to close any account you did not request and seek compensation if it has caused financial damage.
• Document everything – Keep records of calls (note dates, agent names), emails, and written complaints. This paper trail is essential if you escalate to the RBI.

Where to Complain

• Company's grievance portal – First step, gives them 30 days to resolve
• RBI Integrated Ombudsman – cms.rbi.org.in – free, effective, and takes 30–90 days
• Consumer Forum – For compensation beyond what the ombudsman covers
• Social media – A well-documented public complaint often gets resolved faster than any formal process