Fake Loan App List (2026 – Apps Banned or Flagged in India)

In today’s increasingly digital world, you may be tempted to take a quick instant loan through a mobile app. But not all loan apps are safe. There is a real risk of falling prey to a fake loan app, especially in India, where numerous platforms operate without proper regulatory approval.

Let’s explore a list of fake loan apps that have been flagged through regulatory warnings, enforcement actions, and user complaints, and understand how you can spot fraudulent lending platforms.

Why Is There a Surge in Fake Loan Apps in India?

Many fake loan apps in India exploit people’s urgent need for money. These scam apps promise easy credit, but they often function outside legal frameworks. According to a notice by the Fintech Association for Consumer Empowerment (FACE), some apps misleadingly claim to be “RBI approved” even when they are not. FACE emphasises that the RBI does not register or license loan apps directly.

Moreover, authorities have uncovered large-scale fraud. In recent enforcement actions, including cases uncovered in 2024 and 2025, the Enforcement Directorate (ED) arrested individuals involved in a scheme using fake Chinese loan apps. These apps allegedly extorted users for advanced EMIs, blackmailed them using private data, and employed hundreds of mule bank accounts.

Google has also taken action. It removed more than 4,700 illegal loan apps from the Play Store over two years, following a policy change that only allows apps associated with regulated lenders.

As of early 2026, fake loan apps continue to operate in India despite regulatory action, making it critical for borrowers to stay informed and cautious.

Notorious Fake Loan App List in 2026

While there are hundreds of suspicious apps, here are some commonly reported fake loan apps in India:

Disclaimer: This list is based on publicly reported complaints, enforcement actions, and regulatory warnings. Beyond these, a much larger list of 500+ potentially fraudulent apps has been reported. App availability, names, and compliance status may change over time. Readers are advised to verify the lender’s NBFC or bank partnership before applying.

Warning Signs: Is a Loan App Fake?

Recognising a fake loan app is your first line of defence. Here’s what you should watch out for:

• No RBI/NBFC Registration: Genuine lending apps must disclose if they partner with an NBFC. An app that claims to “be RBI-approved” but does not list a regulatory entity is suspicious.
• Upfront Fees and Hidden Charges: Scam apps often demand a processing fee before giving you the loan. Regulated apps usually do not operate in this manner.
• Excessive Permissions: If the app asks for access to your contacts, messages or other data that is not necessary for lending.
• Abusive Recovery Practices: Threats, harassment, blackmail or even defamation if you default are a big sign of a fake loan app.
• Fake or Missing Support: Scam apps may have no legitimate customer service, no address or no way to lodge complaints.
• Unrealistic Promises: Extremely high loan amounts, no credit checks, or “loans approved instantly” without proper verification should raise your suspicions.

What Does RBI Regulate in Digital Lending?

RBI does not approve or license loan apps directly. It regulates banks and NBFCs that provide loans. Genuine loan apps must clearly disclose their regulated lending partner and comply with RBI’s digital lending guidelines.

What Can Happen If You Use a Fake Loan App

• Data Theft: Once you share personal documents, fraudsters can misuse them or leak them.
• Harassment: Many complain of threatening messages, calls or even blackmail.
• Moral and Psychological Pressure: According to the ED, some operators have threatened to share morphed images of victims.
• Financial Loss: Apart from repayment amounts, you may pay unnecessary upfront fees or fall into a debt trap.
• Illegal Operations: These apps may operate beyond legal credit frameworks. It increases your risk.

How You Can Check If a Loan App Is Fake

Here is how you can check if the app you are using is under the fake loan app list:

1. Search RBI / NBFC Lists

Check whether the lender backend is a legally registered NBFC or bank. If you cannot find it in the RBI’s directory, be cautious.

2. Read the Fine Print

Before accepting any loan, read the terms and conditions, interest rate, repayment schedule and EMI-related details carefully.

3. Review App Permissions

During installation, check what permissions the app asks for. Legitimate lending apps need minimal permissions. If they ask for contacts or media access, ask why.

4. Check User Feedback

Look at app reviews, social media threads and forums. Search for complaints about harassment or data misuse.

5. Verify Physical Address and Contact

Legitimate NBFCs will usually disclose their registered address, email and phone number. If you cannot find it, that is suspicious.

6. Use Official App Stores

Only download from trusted stores. Do not download app files from unknown websites.

7. Don’t Pay Upfront Fees

Real loans are seldom disbursed only after you pay a big “processing fee” in advance. Demand transparency.

What Should You Do If You Think an App Is Fake?

• Report to Cybercrime: If you face harassment or suspect fraud, file a complaint with your local cybercrime cell.
• Notify the RBI: You can complain through the RBI’s channels if your NBFC is registered.
• Uninstall Immediately: Remove the app and block any numbers used.
• Check Your Data: Monitor your bank statements for unauthorised transactions or recurring charges.
• Inform Others: Warn friends or family who might be at risk.

How My Mudra Can Help You Use Safe NBFC-Backed Loans

At My Mudra, we partner with authorised banks and NBFCs to offer you safe, reliable loan products. It can be whether it’s an online business loan, an instant personal loan, or a home loan. Because we work through regulated institutions, you do not have to worry about the risks associated with shady lending apps.

Here’s how you stay safe with us:

• Transparent terms and customer support
• Verified, regulated lending institutions
• No hidden fees or threats
• Secure application process

If you are looking for fast, legitimate finance, apply through My Mudra rather than taking a risk by using a fake loan app. Your financial safety matters, and so does your peace of mind.

Summarising

Knowing the fake loan app list is important for you. The number of fake loan apps in India continues to be a serious concern. Many of these operate without regulatory approval, making them dangerous for people seeking quick loans. By staying informed, checking app legitimacy, and avoiding unverified platforms, you can significantly reduce your risk.

Platforms like My Mudra can help you safely compare loan options in one place. We make it easier to find apps and lenders that are listed in the RBI-approved NBFC list loan app and provide clear information. This way, you can make safer choices when applying for loans.

Also Read:
- RBI Approved Loan Apps List (2026 – Trusted Digital Lenders)
- Best Instant Loan Apps Without Documents in India (2026 Ranked List)