Kannur, July 1: Illegal loan app syndicates have disbursed more than ₹100 crore in Kerala over the past 18 months, with 80% of the borrowers being teenagers and young people below the age of 25, according to police. Officials have warned the public against falling for instant loan offers that often lead to harassment, blackmail and financial exploitation.
Police said hundreds of illegal loan app networks continue to target vulnerable borrowers by promising quick cash with little or no paperwork.
Police Warn Against Instant Loan Apps
According to police, nearly 540 illegal loan app gangs are currently operating across India. These apps attract users with advertisements such as “Get a loan in 5 minutes,” “No paperwork,” and “No waiting.”
While borrowers receive money quickly, many later face serious problems if they fail to repay on time.
Borrowers Face Harassment and Blackmail
Officials said most loan apps offer amounts between ₹10,000 and ₹50,000 and charge interest rates of up to 36%.
Investigators said many apps ask users to share their Aadhaar, PAN card, bank account details, and also seek permission to access their phone’s contacts, messages and photo gallery.
Once users grant access, the operators allegedly misuse personal information to threaten borrowers. Victims often receive repeated calls, while their friends and family members are also contacted. In some cases, scammers reportedly circulate morphed or offensive images to force borrowers into making payments.
Over 55,000 Complaints Received
Cyber police have received more than 55,000 complaints related to illegal loan app operators over the past year.
Most complaints involve harassment, threats and demands for additional money even after borrowers had already repaid their loans.
Crime Branch Probes Loan App Network
The Kerala Crime Branch, which is investigating the death of Nitin Raj, a student of Anjarakkandy Dental College in Kannur, has uncovered links to the Intent Friends loan app network.
Investigators found that the network had disbursed nearly ₹300 crore in loans across India up to the financial year 2025–26.
Police Advise Public to Stay Alert
Police have urged people to avoid downloading unknown loan apps and to borrow only from lenders approved by the Reserve Bank of India (RBI).
Officials also advised victims not to pay money under threats. Instead, they should immediately report the matter to the authorities, preserve screenshots and call records as evidence, and contact the National Cyber Crime Helpline (1930) or file a complaint through the National Cyber Crime Reporting Portal.
The police said greater awareness and timely reporting can help prevent more young people from becoming victims of illegal digital loan scams.