They promise instant money. No paperwork.
No questions. Just download an app and get cash in minutes. What seems like convenience is actually the start of a brutal nightmare. In this episode, I expose the dark, deadly reality of illegal loan apps operating across India and the irreversible damage they are causing.
These unregulated apps offer quick loans with hidden terms and astronomical interest rates. Once a user downloads the app and accepts the permissions, the app gains full access to their contact list, messages, gallery, and more. The moment a repayment is delayed—even by a few hours—the abuse begins. Victims receive threats, obscene messages, and in many cases, morphed images are shared with their entire contact list to shame them into paying. This is not lending. This is psychological warfare.
A 23-year-old woman in Andhra Pradesh died by suicide in 2022 after being blackmailed by agents of such an app. Despite repaying part of her loan, they continued to harass her, sending doctored images to her contacts. She could not bear the shame and pressure. There are dozens of such stories, each pointing to a pattern of exploitation and abuse.
These apps are not registered with the Reserve Bank of India. They operate under fake company names, hide server locations, and disappear once flagged. Their tactics are illegal under Indian cybercrime and privacy laws, but the victims often suffer in silence, unaware that help is available.
It is essential to understand that these are not financial services—they are digital extortion rackets. They exploit financial desperation and tech illiteracy. We must act collectively to stop their reach. Never download any loan app that is not listed on RBI’s official portal. Never grant permissions to access contacts or media to any financial application. Once access is given, there is no undoing the damage.
Stay Safe – Do This:
- Never download loan apps from unofficial websites or ads
- Check the RBI website for the list of approved lenders
- Do not grant contact or media access to any loan app
- If harassed, file a complaint immediately on cybercrime.gov.in
- Warn family and friends—shame loses its power when exposed
- Block and report the numbers used for blackmail or threats
Action Against illegal loan apps
- ≈ 4,700 illegal loan apps were removed from Google Play Store between April 2021–August 2023en.wikipedia.org+1economictimes.indiatimes.com+1faceofindia.org+13livemint.com+13linkedin.com+13.
- Over 2,200 were specifically taken down during September 2022–August 2023indianexpress.com+2livemint.com+2sansad.in+2.
- Between October 2023–May 2024, the Indian Cyber Crime Coordination Centre (I4C) shut 379 illegal loan‐app websites, preventing ₹2,400 crore in cyber fraud faceofindia.org+15moneycontrol.com+15ndtv.com+15.
- As of early 2024, 800+ suspicious apps were identified and flagged by FACE (a fintech industry body), with Google removing 3,500 personal loan apps in 2022 alone livemint.com+2faceofindia.org+2faceofindia.org+2.
Conclusion:
Yes, the illegal loan‑app ecosystem remains massive and active. Thousands of apps have been removed, yet hundreds continue to operate daily—justifying continued vigilance and public awareness.
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ABOUT ‘AKANCHA SRIVASTAVA FOUNDATION’
The Akancha Srivastava Foundation is India’s leading social impact initiative dedicated to advancing cyber safety awareness and education. Established in February 2017, this not-for-profit Section 8 organization is a trusted voice in promoting safe online practices across the nation.
Distinguished Board of Advisors
Guided by an honorary advisory board of esteemed leaders:
- Former Special DGP RK Vij (Chhattisgarh Police)
- ADG Navniet Sekera (Uttar Pradesh Police)
- ADG Krishna Prakash (Maharashtra Police)
- Dr. Poonam Verma (Principal, SSCBS, Delhi University)
Our Mission
The Foundation is committed to educating, empowering, and building bridges between the public and authorities on critical cyber safety issues. Additionally, we specialize in forensics training for law enforcement, equipping them with the skills needed to tackle cybercrime effectively.