'Loan in 5 minutes'; Kerala police uncover massive loan app network

Kannur: Loan app syndicates have disbursed more than ₹100 crore in Kerala over the past 18 months, with 80 per cent of borrowers being teenagers and young people below the age of 25, according to the police.

Police estimate that around 540 loan app gangs are currently operating across the country. These apps aggressively market instant loans with promises such as "Get a loan in 5 minutes," "No paperwork," and "No waiting." While obtaining a loan is quick and simple, officials warn that borrowers who fail to repay often face severe harassment and intimidation.

Over the past year, the cyber police have received 55,000 complaints related to loan app operators, most of them involving threats, harassment and demands for additional payments even after loans had been repaid.

The apps typically offer loans ranging from ₹10,000 to ₹50,000, charging interest rates of up to 36 per cent.

Meanwhile, the Crime Branch, which is investigating the death of Nitin Raj, a student of Anjarakkandy Dental College in Kannur, has found that the Intent Friends loan app network had disbursed nearly ₹300 crore in loans across the country up to May 2025–26.

'Within five minutes, without collateral'

To process a loan, these apps usually require borrowers to provide their Aadhaar, PAN card and bank account details, along with permission to access their phone's contacts, messages and photo gallery. Investigators say this effectively gives the operators unrestricted access to the borrower's personal data.

Once these permissions are granted, the loan amount is transferred to the borrower's account within minutes, often after deducting the first instalment or processing charges in advance.

Threats, harassment and morphed photographs

Police say the operators resort to increasingly aggressive tactics when borrowers miss repayments.

The first step is to identify the borrower's most frequently contacted friends and relatives using the phone's contact list. They then repeatedly call these contacts, sometimes every hour, to pressure the borrower.

If repayments are still not made, the harassment escalates. Fraudsters allegedly circulate morphed photographs, particularly involving female family members or close acquaintances, to humiliate and intimidate borrowers into paying.

Growing number of victims

Police say the number of people falling victim to loan app scams has risen steadily over the past two years, with students and women among the most affected groups.

P. Balakrishnan Nair, Superintendent of Police heading the Crime Branch investigation into Nitin Raj's death, urged the public not to remain silent if they are threatened by loan app operators.

"The number of victims has been increasing over the past two years, particularly among students and women. People should not hesitate to report threatening loan app operators to the police. Anyone considering a digital loan must first understand all the terms and conditions clearly," he said.