Google has removed three loan applications from the Play Store following a complaint from the Ministry of Home Affairs (MHA), amid a wider crackdown on fraudulent digital lending platforms accused of misusing users’ personal information and harassing borrowers.

The three apps — Horizon Cash Service, Money Score Monitor and JellyCredit — were flagged by the Indian Cyber Crime Coordination Centre (I4C), the cyber-security unit under the MHA. According to the information provided, the government sought their removal on August 19. Google subsequently took action against the apps.

The latest action takes the number of alleged fraudulent loan apps removed following government intervention this month to nine. Earlier, six other apps — Loan Orbit, Hisab, Nexx Loan, One Fund, Credit Factor and Mobile Credit — were also targeted.

How fake loan apps trap users

Fraudulent loan apps often attract users by promising quick loans with minimal documentation. Advertisements may claim that borrowers can receive amounts such as ₹50,000 within minutes without a CIBIL score or extensive paperwork.

Once installed, some malicious apps may seek access to sensitive information stored on a smartphone. This can include contact lists, photographs, identity documents and financial information.

Such access can create serious privacy and security risks. The information may subsequently be misused to threaten, intimidate or blackmail borrowers, particularly when they fail to meet demands for excessive interest or penalties.

Check lender before taking loan

Consumers should verify the company behind a loan application before submitting personal or financial information.

A legitimate digital lending application should be associated with a regulated bank or Non-Banking Financial Company (NBFC). Borrowers should check the lender's identity and verify its regulatory status through official Reserve Bank of India (RBI) resources rather than relying only on information displayed inside an app.

Users should also check whether the lender provides verifiable contact details and a physical business presence.

Avoid unnecessary app permissions

One of the biggest warning signs is an app asking for access to information that is not required for its stated purpose.

A loan application requesting access to a user's entire contact list, photo gallery or other unrelated data should be treated cautiously. Users should review permissions before installation and deny access that is unnecessary.

If an application continues to demand excessive permissions, uninstalling it is a safer option.

Never pay suspicious upfront charges

Users should also be cautious if an unknown loan application demands money before disbursing a loan, particularly under labels such as processing fees or file charges.

Unexpected upfront payments, unusually high interest rates, pressure tactics and promises of instant loans without proper verification can all be warning signs of a fraudulent lending operation.

Borrowers should carefully examine the lender's terms and conditions before accepting any loan.

Don't install APKs from unknown links

Cyber-security experts regularly advise users to avoid downloading applications through links received in unsolicited SMS messages, WhatsApp chats, emails or social media posts.

Unknown APK files can potentially contain malicious software capable of compromising a device or stealing sensitive information.

Users should download applications only through trusted sources and verify the developer and lender before entering financial or personal details.

What to do if you are targeted

If someone has already installed a suspicious loan app or is being threatened by people claiming to represent such an application, they should preserve evidence such as messages, screenshots, transaction details and phone numbers.

The complaint can be reported through India's national cybercrime helpline, 1930, and the government's cybercrime reporting portal. Users can also approach the cybercrime unit or police station in their area.

The suspicious application should be removed from the device after preserving relevant evidence. Users should also review app permissions and consider changing passwords or taking additional account-security measures if sensitive information may have been exposed.

The latest removals underline the importance of checking a digital lender before borrowing. A promise of an instant loan should not come at the cost of access to a phone's contacts, photographs, banking information or other personal data.