A loan app is threatening you or messaging your contacts: what to do

Short answer: You have rights, and harassment is not a legal way to collect a debt. Regulated loan apps (apps of lenders that RBI supervises) aren’t allowed to access your contacts, photos or files at all. Threats, shaming messages and morphed (edited, fake) photos are crimes. Report them on 1930 or cybercrime.gov.in, and to the police. Report an unregistered app on RBI’s Sachet portal. If the lender is regulated, complain to it and then to the RBI Ombudsman, RBI’s free complaints service. Keep evidence, and don’t pay “extra fees” to personal UPI IDs under pressure.
You’re not alone, and it’s not your fault
Thousands of people have been targeted this way. Harassment works through shame and by making you feel alone. So telling one person you trust already weakens it.
How these apps usually work
- They “approve” one amount but send much less, keeping a big “processing fee”.
- They give you only 7 days to repay.
- They call from many numbers, send fake “legal notices”, and message your contacts calling you a “fraud”.
- They threaten to share morphed photos.
- They push you to borrow from a second app to repay the first.
A ₹ example
Fictional.
An app approves ₹5,000 but sends only ₹3,500. You must repay ₹5,000 in 7 days.
- Cost: ₹1,500 on ₹3,500 received = 42.9% for one week
- As a yearly rate: about 2,235% (simple, not compounded)
No regulated lender’s Key Facts Statement (KFS, the short sheet that lists a loan’s costs) would look like this.
What regulated lenders can and can’t do
Under RBI’s Digital Lending Directions, 2025, and RBI’s rules on loan recovery:
- No access to your contact list, call logs, files or media. The only exception is one-time camera, microphone or location access for KYC (the identity check), with your consent.
- Before a recovery agent (a person sent to collect the debt) contacts you, the lender must send you the agent’s details by SMS or email.
- Recovery calls only between 8 am and 7 pm (microfinance: 9 am–6 pm). No threats, no abuse, and no contacting friends or family to shame you.
- If the lender doesn’t resolve your complaint within 30 days, you can take it to the RBI Ombudsman.
From 1 January 2027, stricter RBI recovery rules apply, including advance notice of visits and recorded calls.
If messages have started: step by step
- Take screenshots of everything: messages, call logs, numbers, the app’s name and Play Store page, and payment receipts.
- Report threats, extortion (demanding money with threats) or morphed images on 1930 or https://cybercrime.gov.in. If you feel unsafe, go to your nearest police station.
- Warn your contacts with a short message:
“An illegal loan app is sending fake messages using my contact list. Please ignore them and don’t forward them.”
- Check the app in RBI’s list of digital lending apps (rbi.org.in → Citizen’s Corner → DLAs deployed by regulated entities).
- Not on the list? Report it on Sachet: https://sachet.rbi.org.in
- On the list? Complain to the lender’s grievance officer, the person who handles complaints (named in your KFS). If it isn’t resolved in 30 days, file with the RBI Ombudsman within 90 days at https://cms.rbi.org.in or call 14448.
- Take screenshots first. Then remove the app’s permissions, uninstall it and report it on the Play Store.
- Repay only what you really owe to a regulated lender, through its official channel, and keep the receipt. Don’t pay “extra fees” or “settlement charges” to personal UPI IDs.
Common fears
- “I gave contact permission, so they’re allowed to message my contacts.” No. Regulated apps aren’t allowed contact access at all, and shaming is forbidden.
- “If I complain, I’ll be arrested for not repaying.” Not repaying a loan is usually a civil matter, a money dispute rather than a crime (a bounced cheque can be treated differently). Threats and extortion are crimes.
- “If I delete the app, the debt disappears.” A loan from a regulated lender is still owed. Illegal apps should be reported, not paid under pressure.
Look after yourself
This kind of pressure is exhausting. Talk to someone you trust. Free, confidential support is available 24/7 at Tele-MANAS: 14416.
If you’re thinking about harming yourself, call 14416 now or go to the nearest hospital.
What to check today
- Save evidence in one folder, and note the app’s exact name.
- Check the app against RBI’s DLA list.
- Save 1930 and 14416 in your phone.
Sources and review
- RBI (Digital Lending) Directions, 2025 (paras 8, 11, 12): https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12848
- RBI list of digital lending apps (press release): https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=60403
- National Cyber Crime Reporting Portal: https://cybercrime.gov.in · RBI Sachet: https://sachet.rbi.org.in · RBI CMS: https://cms.rbi.org.in
- Government blocking of illegal loan apps (reported, Dec 2025): https://www.businesstoday.in/amp/technology/news/story/87-illegal-loan-apps-banned-by-the-govternment-citing-data-misuse-fraud-and-harassment-504784-2025-12-03
- RBI — recovery-agent rules from 1 January 2027 (RBI/2026-27/223, 6 Aug 2026): https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13665
- Example calculated by Paisavy.
Educational information, not financial advice. Found an error? Tell us → · Corrections log