Borrower Harassment on the Rise: How to Avoid Loan Sharks Safely

Loan crimes grew sharply in 2025 as digital lenders targeted both urban and rural borrowers.

Why are more people turning to loan apps that end in threats and harassment? The Fair4All Finance study revealed that loan sharks had expanded across middle-income groups in 2025. Some borrowers earned over £3,200 a month and still relied on unlicensed sources. The UK was not alone.

India recorded a sharp rise as well. On 30 August 2025, LoansJagat mentioned that ₹48 lakh was returned to people who were scammed by fake loan apps. These apps promised small loans instantly, but then added hidden charges and used contact lists to threaten borrowers.

The scale of these scams raised one urgent question: how to avoid loan sharks before they reach more phones and homes.

What Loan Sharks Actually Do Today?

Loan sharks are people or groups that give credit without approval from any regulator. They hide interest charges. They avoid paperwork. They depend on pressure and fear to recover money.

The modern version works inside phones. Many fake loan apps copy the look of real apps. Victims often accept the terms without reading them. Once they borrow, the threats begin. These can include calls to relatives or messages to employers.

Read More – Loan Recovery Harassment and Its Mental Health Impact

This change forced governments to build digital reporting paths. The table below lists official portals that borrowers can use.

Verified Portals Where People Can File Complaints

Many victims do not know where to complain. The websites below help users report harassment or illegal lending. These sites are run by government offices in India.

These channels give structure to the complaint process. Users can also track updates. Reporting early reduces long‑term harm. The next section moves to how the current news connects with older incidents.

Why This News Links Back To Past Loan Scam Stories?

Past reports on loan scams showed how even very small loans can cause deep harm. A case in Jalandhar gained attention in April 2022. A borrower took a ₹3,500 app loan. Threats followed. The man tried to harm himself.

The 2025 data helps explain that these cases were not isolated. A note issued by Staffordshire County Council on 18 September 2024 stated that many victims waited over two years before reporting. That delay gave offenders more time to hide money or shut their operations.

These findings build a clearer picture of risk. They show how today’s loan shark networks spread across regions and phones. The next section explains how banks and governments changed their approach.

Have Authorities Changed Their Strategy?

Older efforts mostly focused on raids. Gujarat Police seized assets worth over ₹63 lakh during 2023 and 2024. Those actions removed individual operators but did not stop new ones from forming.

A stronger response began in 2024. India’s Ministry of Finance drafted a law in December 2024 that proposed prison terms up to ten years for illegal lending. The Reserve Bank of India updated its digital lending rules. These rules made regulated lenders responsible for any mobile app linked to their licence.

The table below shows official websites where borrowers can check lender lists and rules.

Also Read – India’s Loan Recovery System Under Pressure as Defaults Rise

These sites help borrowers avoid fake apps and unknown lenders. They also support early checks before taking a digital loan.

Conclusion 

Simple steps help prevent risk. Borrowers should check lender names on RBI lists. They should avoid apps that ask for access to photos, contacts or call logs. They must avoid messages that promise instant money. If harassment begins, they should collect screenshots and report to cybercrime.gov.in at once.

Learning how to avoid loan sharks is no longer optional. It is a basic part of borrowing in 2026.