Why The Government Blocked 87 Digital Loan Apps In December 2025

A written reply tabled in Lok Sabha on 1 December 2025 confirmed that the Ministry of Electronics and Information Technology blocked 87 illegal loan lending applications after completing due process under Section 69A of the Information Technology Act, 2000.

How did small loans on mobile apps turn into a threat for many households across India? That concern shaped the discussion when a key disclosure reached Parliament at the start of December 2025.

The ministry stated that public access to these applications ended once regulatory inputs showed violations of digital lending and corporate compliance rules. The update set the tone for wider debate on Government blocks illegal loan apps and the safety of mobile-based lending.

What Is The Latest Action On Government Blocks Illegal Loan Apps?

The reply placed before Parliament explained that the Ministry of Corporate Affairs reviewed company records under the Companies Act, 2013 during the scrutiny. Officials checked filings, statements and ownership details once suspicious lending behaviour came to light. This dual review confirmed the grounds for blocking the 87 apps during the December screening round.

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One confirmed case recorded by Loansjagat in August 2025 shows the effect of unsafe loan platforms. Police in Visakhapatnam recovered 48 lakh rupees and returned it to victims of a fraudulent instant loan app. The same case involved 295 affected people, according to the report published in August 2025. This incident shows why the government moved fast when unregulated apps expanded their reach.

Before moving to definitions, a gap must be stated. No public list naming the 87 blocked apps has been uploaded on any official portal so far. This missing detail leaves borrowers unsure about which platforms were stopped in the December review.

What Illegal Loan Apps Mean Under Government Blocks Illegal Loan Apps?

Illegal loan apps operate without authorisation. These apps lend money without a licence from the Reserve Bank of India. They change repayment terms without telling users. They also collect phone data, contacts and documents without clear consent. Many create pressure on borrowers using illegal recovery calls. These actions violate RBI’s digital lending framework published in 2022.

Before the table below, one point helps give context. Readers often search for verified government pages that describe the legal steps behind actions like blocking, so the table lists the primary websites that outline the rules.

Key Government Sources That Explain The Rules

These sources show the system that guides action against unregulated apps.
 

The list also shows how each agency holds a part of the framework used in December 2025 to block illegal lending platforms.

Major Government Measures On Digital Lending In Earlier Years
 

These entries show a shift from advisories in 2024 to stronger action in 2025. After this comparison, attention moves to the response pattern seen in banks and government bodies in earlier phases.

This also reflects how multiple stages of regulation eventually led to the December 2025 blocking order.

Banks earlier strengthened verification checks for digital partners and updated internal rules to reduce misuse of customer information. They issued caution notices advising people to borrow only through verified channels. 

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Government agencies, by contrast, chose stronger enforcement in 2025 by using legal blocking orders instead of advisories alone. This action marks a firmer shift in dealing with illegal loan apps.

Conclusion

The December 2025 disclosure confirming 87 illegal loan apps blocked shows a clear step taken under the IT Act after regulatory review. The incident of 48 lakh rupees returned to victims in August 2025 shows the real harm these platforms cause before action reaches them. 

The next expected move is the publication of the full list of blocked apps and updates on investigations started under the Companies Act, 2013.