New Delhi, Sept. 16 -- The manager of a state lender was recently arrested in Lucknow for misusing documents of loan applicants to divert funds to shell companies for his personal use. The branch manager of Union Bank of India's Jankipuram branch in Lucknow, along with a few accomplices, was arrested, reported the Times of India.

He is accused of using his official login IDs and forged documents to siphon off crores of rupees through fraudulent Mudra and auto loans. He and his three accomplices are now behind bars.

Although this was a criminal case and loan applicants must have been caught unaware, it is important for loan applicants to exercise caution when applying for a loan.

I. Apply for loans online: It is recommended to apply for...