In recent years, instant loan apps have become popular in India. With just a mobile number and Aadhaar details, users can receive small loans within minutes. While many regulated lenders operate legally, there has also been a rise in complaints related to harassment, threats, and misuse of personal data by certain loan apps.
If you or someone you know is facing harassment, this guide explains your legal rights and the proper loan app harassment complaint process in India.
Rise of Instant Loan Apps in India
Digital lending has grown rapidly due to:
- Quick approval process
- Minimal documentation
- Instant disbursement
- Mobile-based applications
However, not all apps follow proper guidelines.
Increasing Complaints of Harassment
Several users have reported:
- Threatening calls
- Abusive messages
- Contacting friends and relatives
- Public shaming tactics
- Privacy misuse
Such behavior is illegal and punishable under Indian law.
Importance of Knowing Your Legal Rights
Many victims panic due to fear and social pressure. It is important to understand:
- Harassment is illegal
- You have legal protection
- Official complaint portals are available
What is Loan App Harassment?
Loan app harassment usually includes aggressive or illegal recovery tactics.
Common Issues
1. Threatening Calls and Messages
Repeated calls using abusive language or threats.
2. Contacting Family or Friends
Accessing phone contacts and calling relatives to pressure repayment.
3. Morphing Photos or Blackmail
Editing personal photos and threatening to share them publicly.
4. Excessive Interest and Hidden Charges
Charging extremely high interest beyond agreed terms.
5. Unauthorized Data Access
Accessing contacts, photos, and personal data without proper consent.
All such actions are illegal and violate privacy laws and financial regulations.
Is Loan App Harassment Illegal in India?
Yes, harassment by loan apps is illegal.
RBI Digital Lending Guidelines
The Reserve Bank of India has issued digital lending guidelines to regulate loan apps. Key protections include:
- Transparent loan terms
- No harassment in recovery
- Proper disclosure of charges
- No unauthorized data access
Apps violating these norms can face action.
IT Act Provisions
Under the Information Technology Act:
- Unauthorized data access
- Cyber harassment
- Online threats
are punishable offenses.
Indian Penal Code (IPC)
Relevant IPC sections cover:
- Criminal intimidation
- Extortion
- Defamation
- Harassment
If a loan app threatens, blackmails, or misuses your data, you can file a legal complaint.
Step-by-Step: How to File Complaint Online
If facing harassment, follow these official steps.
Step 1: Collect Evidence
Before filing complaint, gather:
- Call recordings
- Screenshots of messages
- WhatsApp chats
- Payment receipts
- Loan agreement copy
- App name and developer details
Do not delete any evidence.
Step 2: Report on National Cyber Crime Portal
You can file a complaint at the official National Cyber Crime Reporting Portal.
🔗 Website:
Steps to File Complaint:
- Visit cybercrime.gov.in
- Click “Report Other Cyber Crime”
- Register using mobile number
- Select appropriate category (Financial Fraud or Online Harassment)
- Enter details of loan app
- Upload evidence
- Submit complaint
After submission, you receive a reference number. Save it.
This is the official method for how to file cybercrime complaint India.
Step 3: File Complaint with RBI Sachet Portal
If the lender is unregulated or violating RBI guidelines, complain via the Sachet Portal.
🔗 Website:
Steps:
- Visit sachet.rbi.org.in
- Select “Register Complaint”
- Enter lender/app details
- Describe harassment
- Submit complaint
This is useful when dealing with suspected illegal lending apps.
Step 4: File Complaint with Local Police
If threats are serious:
- Visit nearest police station
- File FIR
- Provide cybercrime complaint reference number
- Submit evidence
Police can take action under IT Act and IPC.
How to Block Harassment Calls
While complaint is under process:
- Block unknown numbers
- Use call-blocking apps
- Avoid responding to abusive messages
- Inform family members in advance
Let your relatives know about possible fake calls to reduce panic.
What NOT to Do
Facing harassment can be stressful, but avoid these mistakes:
- Do not panic
- Do not pay illegal extra charges
- Do not share OTP or Aadhaar details
- Do not delete messages or call logs
- Do not respond emotionally
Stay calm and follow legal channels.
How to Check If Loan App is RBI-Registered
Before taking a loan:
- Check if the lender is an NBFC or bank.
- Verify on RBI official website NBFC list.
- Ensure proper loan agreement is provided.
Avoid:
- Unknown apps with no physical address
- Apps asking access to full contact list
- Apps demanding upfront processing fees
This helps prevent illegal loan app India issues.
Frequently Asked Questions
Can Loan App Legally Contact My Contacts?
No. They cannot legally call or harass your family or friends for recovery.
Can They Arrest Me?
No. Loan apps cannot arrest anyone. Only courts and police have authority under law.
What If I Cannot Repay Loan?
If you genuinely cannot repay:
- Contact lender officially
- Request structured repayment
- Avoid illegal lenders
Is Settlement Possible?
Yes, many regulated lenders allow settlements. Always get written confirmation.
Official Government Security & Cybercrime Reporting Links (India)
Conclusion
Loan app harassment is a serious issue, but victims have legal protection. If you face threats, blackmail, or privacy misuse:
- Collect evidence
- File complaint on National Cyber Crime Portal
- Report via RBI Sachet portal
- Approach local police if needed
Never respond with fear or panic. Harassment is illegal. There are official and legal complaint channels available in India.
By understanding your rights and following proper procedures, you can handle the situation safely and lawfully.
If you or someone you know is facing loan app harassment complaint issues, take action through official government portals without delay.
