How It Works
Unverified loan apps offer "instant loans, no documents needed." To approve the loan, they demand access to your phone's contacts, photos, and gallery. After disbursing a small amount, they charge huge hidden fees and threaten to morph your photos or call your contacts to shame you into repaying inflated amounts.
Real Example
RBI flagged over 1,200 fake loan apps in a single quarter; victims who borrowed small amounts were harassed and extorted afterward, with some scammers even using AI-generated content and manipulated video "loan officers" to pressure repayment.
Red Flags 🚩
- Loan approval with no documents or credit check
- App asks for contacts, gallery, and SMS permissions
- Unusually high processing fees deducted upfront
- Not listed with RBI-registered NBFC partners
Protection Steps 🛡️
- Only use loan apps linked to RBI-registered NBFC/banks.
- Never grant contacts/gallery access to a loan app.
- Check the lender's name and registration on RBI's website.
- Report harassment by recovery agents to the cybercrime portal and police.