Kerala Police Warn Against Predatory Loan Apps; Issue Detailed Safety Advisory

Thiruvananthapuram: Kerala Police have issued a public warning against fraudulent loan applications that lure users with attractive promises before trapping them in a cycle of extortion and harassment. Police said the number of young people falling victim to such apps — which harvest personal data from phones and use it to threaten victims — shows no sign of declining, and have outlined a set of precautions for the public.

1. Verify the App's Legitimacy

Check whether the loan app is associated with a bank or Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India. The RBI's official registry can be accessed at rbi.org.in. Also confirm that the app has an official website and a verifiable physical office address.

2. Be Cautious About Permissions

If an app requests access to your contacts, photo gallery, or location during installation, treat this as a serious red flag. A legitimate loan app has no need for your contact list or photographs. Fraudulent apps harvest this data and later use it to blackmail and threaten borrowers.

3. Read the Loan Terms Carefully

Excessively high interest rates and extremely short repayment periods — such as seven days — are hallmarks of predatory apps. If any app demands an upfront "processing fee" before disbursing the loan amount, it is a scam without exception.

4. Do Not Rely Solely on Play Store Reviews

Ratings and reviews on the Google Play Store can be fabricated. Pay special attention to one-star reviews, where genuine victims often document the fraud they experienced.

5. Avoid Unverified Links

Never download loan apps by clicking links received via SMS or WhatsApp. Always download applications exclusively from the official Google Play Store or Apple App Store.

Anyone who has already fallen victim to such fraud is advised to file a complaint immediately on the cyber helpline 1930 or at www.cybercrime.gov.in.