Home Ministry Orders Google to Remove 6 Malicious Loan Apps From Play Store

The Indian Cybercrime Coordination Centre (I4C) under the Ministry of Home Affairs has stepped up its crackdown on malicious digital lending applications, directing Google to remove or disable access to six loan apps from the Play Store.

The action followed an August 7 notice issued by I4C, which identified the applications as allegedly targeting Android users seeking quick loans. Google was given three hours from the issuance of the notice to take down or disable access to the specified URLs.

According to the information reviewed by Moneycontrol, the six applications had been taken down by August 12.

Six loan apps flagged by I4C

The applications named in the I4C notice are:

• LoanOrbit
• Hisab
• Nexus Loan
• One Fund
• Credit Factor
• Mobile Credit Prairie

I4C alleged that the applications presented themselves as legitimate digital lending platforms, offering users quick loan approvals and low interest rates.

However, the agency alleged that after loans were disbursed, borrowers were subjected to demands for “exorbitant interest rates” on the principal amount.

Apps accused of harvesting sensitive data

The cybercrime agency also raised concerns over the information allegedly collected by the applications after users downloaded them.

According to I4C, the apps were being used by alleged transnational criminals to collect sensitive personal and financial information, including Aadhaar details, financial information and users' contacts.

The notice also alleged that the applications could access information stored on users' devices, including the gallery and camera.

The allegations highlight the risks associated with unverified digital lending platforms that promise instant credit while seeking extensive permissions to access information on users' mobile devices.

Google asked to act within three hours

I4C also flagged the use of Google's advertising ecosystem to promote the applications, alleging that the malicious loan apps were being promoted through digital advertisements on the Play Store.

The agency directed Google to remove or disable access to the identified URLs within three hours while ensuring that relevant evidence was not compromised.

The notice referred to provisions under the Information Technology Rules, the Information Technology Act and the Bharatiya Nyaya Sanhita (BNS) in support of the action.

I4C cited Section 3(1)(b)(viii) of the IT Rules, Sections 43, 66 and 66D of the IT Act, and Section 318(4) of the BNS as provisions relevant to the alleged unlawful activities.

Growing scrutiny of digital lending apps

The action comes amid increasing scrutiny of digital lending platforms and malicious loan applications that exploit consumers seeking quick access to credit.

Cybercrime authorities have increasingly focused on applications that allegedly combine aggressive lending practices with access to users' personal data.

The latest action by I4C underscores the government's focus on identifying and restricting digital lending applications that allegedly misuse personal and financial information while operating through mainstream app distribution and advertising platforms.