A fake loan app is harassing me and my contacts for recovery, what can I do?

I took a small loan from an unlicensed instant loan app and now they're threatening me and messaging my contacts with morphed photos. I have been reading conflicting things online and I would like to understand what Indian law actually says about this, which Act and Section applies, what the realistic timelines and costs are, and what I should be doing right now to protect my position. If the matter can be resolved without litigation I would prefer that route, but I want to know what my rights are before I agree to anything or sign any document.

A fake loan app is harassing me and my contacts for recovery, what can I do? is governed in India primarily by Bharatiya Nyaya Sanhita, 2023 – Section 351 (criminal intimidation), Information Technology Act, 2000 – Section 66E, Reserve Bank of India (Digital Lending) Directions, 2025 and Information Technology Act, 2000 – Section 66C. The short answer is set out below, followed by the practical steps most people in this situation need to take. Read it alongside the specific provisions named, because the exact relief available to you turns on the facts you can prove on paper.

Unlicensed digital lending apps that access your contact list and photos without proper consent and use them to threaten/harass you violate the RBI's Digital Lending Directions, which require lenders to be RBI-regulated entities and prohibit such coercive recovery practices.

Threatening you or your contacts, especially using morphed/doctored images, amounts to criminal intimidation under Section 351 BNS and, if images are altered, Section 66E/66C of the IT Act (privacy violation/identity theft) also applies.

RBI has directed that only RBI-regulated entities or their registered agents can lend digitally; many such apps operate illegally without any RBI registration, meaning the underlying loan agreement itself may be unenforceable.

Report the app directly to the RBI's Sachet portal (sachet.rbi.org.in) for illegal lending activity, in addition to filing a criminal complaint at cybercrime.gov.in for the harassment and privacy violation.

Google has also delisted many such apps from the Play Store following RBI action, so reporting the app to Google (via Play Store's report abuse option) can help stop it from targeting others.

What to do next: 1) Do not respond to threats; document all messages/calls with timestamps; 2) Report the app on the RBI Sachet portal and to cybercrime.gov.in; 3) File an FIR citing Section 351 BNS and Section 66E IT Act for harassment/privacy violation; 4) Warn your contacts in advance that they may receive fake messages about you.

If the other side has already issued a notice, filed a case or set a deadline, treat the matter as time-sensitive — most remedies under Bharatiya Nyaya Sanhita, 2023 – Section 351 (criminal intimidation) carry limitation periods, and a delay you cannot explain weakens an otherwise strong case. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in this practice area.

Disclaimer: This information is for general awareness and does not constitute legal advice. Statutes and their interpretation change, and outcomes depend on the facts of your case. Please consult a qualified advocate before acting on it.