The death of a young dental student in Kannur has cast a harsh light on the growing menace of predatory loan apps. Despite periodic crackdowns by enforcement authorities, the ecosystem of loan apps continues to evolve, leaving several vulnerable to such exploitation in Kerala.

The deceased, Nithin Raj R.L., a first-year BDS student, had reportedly taken a loan of around ₹14,000 through an online app, following which he is suspected to have been subjected to relentless intimidation. Nithin is suspected to have borrowed the money between December last and January. In the weeks that followed, recovery agents allegedly began to contact him repeatedly.

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Mounting more pressure on Nithin, they also purportedly directed calls and messages to a college teacher in an attempt to shame the youngster and coerce repayment.

Mother’s treatment

Nithin’s father Y.L. Rajan confirmed that his son had taken the loan to help cover his mother’s medical treatment. While some reports suggest that the recovery agents were pressing for immediate repayment of around ₹8,000, investigators say such details are still being verified.

The Kannur Cyber Crime Police have registered a case based on the teacher’s complaint of intimidation by the recovery group. According to the complaint, the teacher’s phone number has been listed as a reference contact, after which she began to receive threatening calls and messages, even on WhatsApp.

District Police Chief (Kannur City) P. Nidhinraj told The Hindu that the teacher received repeated calls from multiple numbers, many traced to north India. The callers reportedly demanded repayment, warning that the harassment would continue otherwise. Even after the student’s death, the calls have not fully stopped, suggesting the callers may be unaware of the incident, the officer added.

Other cases

The incident in Kannur is not an isolated episode. Worryingly, it fits into a growing pattern that law enforcement agencies are struggling to contain. A month ago, a 21-year-old man from Aryanad in Thiruvananthapuram died by suicide, with police investigations pointing to sustained harassment from loan app agents, who allegedly threatened to circulate morphed images. In another case that occurred near Kozhinjampara in Palakkad in January, a 37-year-old man reportedly took his life under similar circumstances after being unable to repay multiple app-based loans.

Law enforcement officials warn that many of these apps operate in a legally grey area. Marketed as quick and easy financial solutions, they often require minimal documentation and promise instant approval. However, once installed, several of these applications seek extensive permission to gain access to users’ contact lists, photos, and other personal data.

Tool for coercion

According to a cybercrime investigator, the access becomes a powerful tool for coercion. When borrowers default, recovery agents allegedly resort to intimidation, blackmail, and public shaming, which often target not just the borrower, but also their friends, family, and colleagues.

State Police Chief Ravada A. Chandrasekhar told The Hindu that such tactics are increasingly common. He pointed out that borrowers often unknowingly grant apps access to sensitive personal data, which is later used to pressure them into repayment. While enforcement agencies have taken down several such applications in the past, new ones continue to emerge.

Following Nithin’s death, the college authorities had placed two faculty members under suspension on a complaint from the student’s family. His parents alleged that he faced caste-based discrimination, colour-based insults and repeated ragging from senior students, and that complaints to authorities were ignored. 

(With inputs from C.P. Sajit, Kannur)