HOW TO SPOT AND AVOID LOAN SCAMS IN THIS DIGITAL LENDING PHASE

• Published on Feb 23, 2026
• Read Time 7 mins
• 

The digital lending boom in Asia, and particularly in India, makes loans highly accessible. Borrowers who apply for green finance, like rooftop solar loans, EV rickshaw loans, and MSME sustainability loans, are benefiting through long-term monetary and environmental returns. But this convenience has also created fertile ground for loan fraud.

RBIs latest report highlights that over 500 suspicious loan apps were flagged in 2025-2026. Dozens of them took on the branding of “green loan” providers. Above this, investigations by MoneyScore and other watchdogs reveal scammers using AI-generated voices, deepfake videos, and fake police calls. These attempts have trapped thousands of borrowers into paying for loans that don’t exist.

Why Green Loan Borrowers Are Targeted

Borrowers looking for EV or solar loans can be considered vulnerable. There’s a surging demand for electric vehicles under the PM E-Drive scheme. With over 28 lakh EVs supported, the deadlines for several applicable subsidies push borrowers to acquire quick approvals. The point being, first-time borrowers like women rickshaw drivers or small business owners may not know how to verify lenders.

Fraudsters exploit this by offering “instant EV loans” or “100% solar subsidy loans” through fake apps. Phishing sites and emails are an additional attack channel.

Recent Loan Scam Trends in India

While the RBI’s banned list flags dozens of illegal lenders for fraudulent offers and harassment, there are also thousands of social media traps to beware of. For example, ads on Facebook and Instagram lure borrowers with “instant ₹50,000 loan” deals and then misuse their personal data.

To add to the chaos, fraudsters often use AI impersonation tricks. Many deepfake videos of “bank officials” and fake police calls have a decent success rate at intimidating borrowers. Also, stay conscious of green loan scams where fake platforms promise EV or solar subsidies and then coerce you into paying upfront fees or demanding access to your contacts and gallery.

CTA: Apply for a Rooftop Solar Loan

Red Flags to Catch in Green Loan Scams

Borrowers can avoid the trap by being alert to these warning signs:

1. Unlicensed apps: Lenders that aren’t listed on the RBI’s official registry can be considered unsafe since they lack regulatory and compliance oversight.
2. Upfront payments: Legit lenders will never request processing fees before disbursing a partial or complete loan amount.
3. “Excessively great” offers: “Zero interest loan” or “double subsidy solar loan” are common bait lines.
4. Aggressive communication: Threatening calls or fake police notices without correct stamps and signatures are hallmarks of scam apps.
5. Data misuse: Apps asking for access to contacts, gallery, or location are red flags.

CTA: Use Ecofy’s EMI Calculator

How to Stay Safe When Applying for Green Loans

Most borrowers can protect themselves from green loan scams through a few practical suggestions:

• Use trusted platforms to avoid being “greenwashed”. It’s best to apply for EV, solar, or green MSME loans through recognised NBFCs like Ecofy.
• Cross-check subsidy details. Confirm schemes on government portals (Ministry of Heavy Industries).
• Avoid side-loading apps. Stick to downloading loan apps from Google Play or Apple App Store.
• Look for 3rd party endorsements. For instance, LEED, IGBC (for buildings), or ISO 14001.
• Verify the lender’s checklist for approval of your loan. They must check your credit history, revenue stability, and repayment capacity just as with traditional loan applications.

How Can Ecofy Help

Our team of green loan experts at Ecofy has partnered with B2B and B2C clients across various commercial industries and personal homes. Their collective environmental impact has reduced carbon emissions by 6,07,560 tonnes since 2022. For this reason, we strongly believe that green loans must remain easy to access and scam-free.

From a simple 3-step process to avoid room for fraud or confusion to no hidden charges and reducing balance interest rates for fair repayment, Ecofy has also simplified digital MSME lending for businesses to go green.

CTA: Apply for an SME Loan

FAQs

1. Are green loans more vulnerable to scams?

Yes. EV and solar loans are in high demand, making them prime targets for fake apps and phishing sites.

2. How can I check if a loan app is genuine?

Verify the lender on the RBI’s official list of regulated digital lenders.

3. What’s the most common loan scam tactic in 2026?

AI‑based impersonation through fake police calls, deepfake lender videos, and apps demanding upfront fees.

4. Are loan subsidies ever disbursed through private apps?

No. Subsidies are processed only through government portals or approved lenders.

5. What’s the safest way to apply for an EV or solar loan?

Through regulated NBFCs, banks, or trusted platforms like Ecofy, using official EMI calculators and transparent loan terms.