How One Student's Death Exposed a Predator Loan Apps in India

Nithin Raj was a 21-year-old first-year BDS student at Kannur Dental College in Kerala, India. On April 10, 2026, he died by suicide after falling from a campus building.

What Drove Him to Death:

An investigation revealed that Nithin had borrowed ₹15,000 (approximately $180 USD) from a loan app called "Insta Pay" operating under a parent company named "Instant Funds." The interest rate? 36% —in violation of state laws.

The day before his death, on April 9, 2026, Nithin received repeated threat calls from the app's operators. He was subjected to threats, intimidation, and sustained psychological harassment demanding immediate repayment.

The Arrests:

Three men have been arrested in connection with Nithin's death:

• Rishikesh Tiwari (32) — From Uttar Pradesh
• Prasanth Gheval (28) — From Uttar Pradesh
• Prakash Jai (54) — From Haryana

All three were taken into custody from a Noida-based call center that police identified as running the loan app scam, employing 40 people

The Staggering Statistics That Should Shock the World:

According to police data released in the wake of Nithin's death

• Complaints filed against illegal loan apps in Kerala (3 years) - 15,000+
• Suicides linked to loan app harassment - 7
• Total financial loss: ₹70 crore ($8.4 million USD)
• Amount recovered: Only ₹28 crore (40%)
• Loan apps banned by Authority: 1,836
• Websites taken down: 5,317
• FIRs registered: Only 284

Who Are the Victims?

• Private sector employees: 32%
• Homemakers: 20.18%
• Business owners: 9.79%
• Students: 4.37%

The Most Terrifying Discovery:

Police revealed that even people who downloaded the app and deleted it without borrowing any money are receiving threat calls. Why? Because the app already siphoned their contact lists, photos, and personal data the moment they installed it.

"The loan apps decide the ceiling of loan amount on the basis of the extent of access they get to the borrower's personal data," a senior police official explained. "By allowing the loan apps access to private documents, including contacts and photos, borrowers put their reputation as collateral."