5 Dirty Tricks Some Loan Apps Use (And How to Outsmart Them)

😠 Ever Received a Message Saying Your Loan is Approved… But You Never Applied?

If you’ve seen SMSes like:

“₹18,500 credited to your account xxxx. Repay in 7 days or face action.”
“Congrats! Loan approved. Click to claim.”

And you’ve thought, “I didn’t apply for any loan!” — then welcome to the dark world of shady loan apps in India.

Not all loan apps are bad — but some are downright dirty with how they trick, scare, or trap users.

Let’s expose their tactics 👇


🚩 1. Fake Loan Approval Messages – Even If You Never Applied

Shady companies send spam SMS and WhatsApp messages pretending you’ve been approved or given a loan already.

Why they do it:

  • Trick you into installing their app
  • Get you to “claim” the loan, so they can access your contacts
  • Startle you into taking a loan out of fear or confusion

James’ Story:
“I started getting 3-4 messages a day saying my account was credited — with different amounts, fake bank names, and scary deadlines. I never applied for any of them. Some even used partial account numbers to sound legit. It’s both annoying and disturbing.”


🧠 Outsmart Them:

  • Don’t click on suspicious loan links.
  • Block & report such numbers.
  • Install Truecaller or Call Blockers to auto-filter spam.

🔍 2. They Show You One Amount, But Give You Less

You’ll see this:

“Loan Approved: ₹10,000. Repay ₹10,500 in 30 days.”
But once approved, they cut a ₹1500 processing fee, plus GST, and only send you ₹8,300.

Yet — you still repay ₹10,500!

It’s not just misleading — it’s a trap.


🧠 Outsmart Them:

  • Look for apps that show total disbursed and total repayable side-by-side.
  • Always ask: “What will I receive in hand?”

🎭 3. They Call Themselves “RBI Approved” – But They’re Not

Some apps falsely display:

  • “RBI Registered NBFC”
  • “Backed by XYZ Finance”
  • “Government Approved App”

But dig deeper — and:

  • No real NBFC license
  • No registration number
  • No website or helpline
  • Just a fancy logo

🧠 Outsmart Them:

  • Use the official RBI NBFC list to verify any loan company.
  • If an app doesn’t clearly show its NBFC partner, walk away.

📞 4. They Demand Access to Contacts – Even Before Approving You

Before you get approved, many shady apps ask to:

  • Access your contacts
  • Read your messages
  • View your gallery
  • Know your location

Why? So if you ever default, they can:

  • Shame you by messaging your contacts
  • Threaten legal action
  • Harass you constantly

🧠 Outsmart Them:

  • Don’t grant permissions unless absolutely necessary.
  • Use phones with permission control (e.g., Xiaomi, Realme, Samsung OneUI).
  • Read reviews before installing any app.

🪤 5. They Hook You with 0% Interest – But Hit You With Fees

You’ll see banners like:

“₹5000 loan at 0% interest!”
But what they don’t tell you:

  • ₹700 processing fee
  • ₹200 verification fee
  • 18% GST
  • 7-day tenure

By the time it’s done — you’ve paid ₹1000+ extra for a short-term ₹5K loan.


🧠 Outsmart Them:

  • Ask for APR (Annual Percentage Rate), not just interest rate.
  • Avoid loans with very short tenures unless it’s an absolute emergency.

✅ Final Advice

“If a loan app feels too fast, too easy, or too quiet about the real cost — it’s probably hiding something. Stick to apps that are upfront about fees, repayment terms, and don’t harass users.”


🛡️ Bonus Tip:

We’ve compiled a list of legit loan apps in India that are transparent and actually disburse what they promise.

👉 Check the Top 5 Trusted Loan Apps in India – 2025 Review


💬 Have you faced any of these tricks?

Drop your story in the comments — let’s help others stay alert.

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