WARNING — Kerala Police Say Loan Apps Are Still Trapping Young People

On April 20, 2026, the police in Kerala, India, issued a public warning. They said that fraudulent loan apps are still luring young people with attractive promises — and then trapping them in a cycle of extortion and harassment .

The 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" 

How Do These Apps Work?

Let me explain it in very simple terms:

Step 1: You see an ad for a loan app. It promises "instant money," "no paperwork," "low interest."

Step 2: You download the app. During installation, it asks for permission to access your contacts, photos, and location.

Step 3: You borrow a small amount, like ₹10,000 (about $120 USD).

Step 4: When it is time to repay, the interest is much higher than you expected. Or maybe you are late by one day.

Step 5: The app operators start calling you. Then they call your friends. Then they call your family. They threaten to share your photos. They shame you.

Step 6: You are trapped. You pay more and more, but the debt never seems to end.

The Safety Tips From Kerala Police

Check RBI registration: Only borrow from apps linked to banks or NBFCs registered with the Reserve Bank of India

Be careful with permissions: A legitimate loan app does NOT need access to your contacts or photos

Read loan terms carefully: If the repayment period is very short (like 7 days) or interest is extremely high, it is a trap

Do not trust Play Store reviews: Ratings can be faked. Look at the one-star reviews — that is where real victims speak

Avoid unverified links: Do not download apps from SMS or WhatsApp links. Use only official app stores