Someone new claims your loan: verify before you pay anyone
Loans do get sold — to Asset Reconstruction Companies and other lenders. Fraudsters know this and impersonate them. The rule that protects you: never pay a claimed new owner until the assignment is proven in writing.
When this letter applies
- ▸A caller or letter claims your loan has been "taken over" and payment should now go to a new entity.
- ▸An ARC offers you a settlement on a loan you thought belonged to your original lender.
- ▸Recovery pressure suddenly arrives from a name you have never dealt with.
Who it goes to
Both sides, separately: your ORIGINAL lender’s grievance officer (asking them to confirm or deny the assignment) and the claiming entity (demanding proof). The original lender’s written answer is the anchor — fraudsters cannot produce it.
What it must contain
- 1A demand for the assignment notice: under SARFAESI §6, the borrower is entitled to notice when a secured loan moves to an ARC — ask for the date and copy of that notice.
- 2A demand for a current statement of account from the claiming entity — amount, break-up, and the chain of how they arrived at it.
- 3A statement that until written proof arrives, you will continue to deal only with the original lender, and no payment will be made to the claimant.
- 4A request to the original lender to confirm in writing whether the account was assigned, to whom, and on what date.
- 5The claiming entity’s full legal identity — name, CIN, registered address — demanded explicitly. Legitimate ARCs provide it without friction; fraudsters evaporate.
The timeline
⏱️ No statutory clock here — the discipline is yours: zero payment until the paper trail is complete. A genuine assignee loses nothing by proving itself; only a fraudster is hurried.
What happens next
If the original lender denies the assignment, you likely just documented an impersonation fraud — report it at cybercrime.gov.in and to the original lender in writing. If the assignment is real, the proven assignee steps into the original lender’s shoes — including all the conduct rules on this site.
Don't draft it alone
Loan Kavach drafts this letter for your exact situation — personalised, legally worded, addressed to the right officer, dispatched from your email with the dates and deadlines tracked for you.
See how Loan Kavach works →⚖️ The legal basis for this page
Every step above rests on a specific law or RBI instrument. Cite these by name when you complain — a grievance that names its provision is handled differently from one that doesn't.
Your entitlement to be told, formally, that a secured loan changed hands.
The regulatory framework every legitimate loan sale operates under — legitimate buyers can always show their paperwork.
Assignment of an actionable claim requires a written instrument — "we bought your loan, trust us" is not a legal position.
This is general legal information about public statutes and RBI instruments, not legal advice for your specific case.