Hyderabad man loses Rs 47 lakh to loan app, blackmailed

One of the apps credited Rs 6,000 to his account but sought a return of Rs 10,000 within five days.

Hyderabad: A man from Hyderabad was duped of Rs 47 lakh by loan apps and threatened with morphed images of his family to extract more payments.

The victim filed a complaint with the Hyderabad Police’s cybercrime unit on November 5, following which various loan app operators and their recovery agents were booked for extortion, harassment and intimidation.

The complainant, a resident of Yellareddyguda, told the police that he had approached a bank for a personal loan of Rs 3 lakh but could not secure one because of his poor Credit Information Bureau (India) Limited (CIBIL) score. Needing money, he turned to instant loan apps and uploaded his Aadhaar, Permanent Account Number (PAN), salary slips and bank statements to obtain quick credit.

“I also allowed the apps to access my contacts, photographs, messages and camera as they demanded at the time of installation,” he told the police.

He alleged that some apps transferred only a part of the sanctioned amount while demanding hefty repayments within days. One app credited Rs 6,000 to his account but sought Rs 10,000 within five days. Even after he repaid the loan and uninstalled the app, recovery agents continued to pressure him for more money.

When he refused to pay, the agents began sending him morphed images of his family members, shared them with his relatives and threatened to circulate them online.

According to the complaint, the agents repeatedly coerced him into taking fresh loans from other apps to clear existing dues, creating a cycle of borrowing and repayment that became increasingly difficult to escape. He alleged that some apps deducted 10 per cent to 20 per cent of the sanctioned amount upfront and charged daily interest of 1 per cent to 2 per cent.

The victim claimed that nearly Rs 26.6 lakh was credited to his bank accounts through around 80 loan apps. Between August 8 and October 9, however, he repaid Rs 47.28 lakh through 253 separate transactions. He told the police that he sold his gold ornaments to arrange the money for repayments.

The harassment allegedly continued even after the repayments. The victim said recovery agents, calling from numbers linked to India and several other countries, kept demanding an additional Rs 30 lakh.

A case has been registered under the relevant provisions of the Bharatiya Nyaya Sanhita and the Information Technology Act.