Exposed: How Bharat Loan App Illegally Scrapes Contacts and Harasses Borrowers — A Victim Speaks Out

Bharat Loan app is accused of illegally accessing borrower contact lists and harassing them for repayments via multiple NBFC partners. A victim has come forward with credible evidence. Learn what laws are breached and actions you can take.

NewsSutra NewsSutra
Jul 28, 2025 - 12:22
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Exposed: How Bharat Loan App Illegally Scrapes Contacts and Harasses Borrowers — A Victim Speaks Out

In India's digital lending boom, platforms like Bharat Loan promise convenience and speed. But behind the glossy interface, borrowers may be exposed to serious privacy violations. Bharat Loan has been accused of illegally scraping user contact lists and deploying harassing tactics via those connections to enforce repayments.

Adding to the concern, a borrower recently contacted us with clear proof—screenshots and emails—showing that the app accessed her contact list and directed recovery messages at her friends and family. This is not simply unethical—it is clearly against Indian law.

A Borrower’s Story: When Recovery Crosses the Line

One of our readers shared her ordeal: after taking out a small loan for a medical emergency via Bharat Loan, she granted the app permission to access her phone’s contacts—unaware of the consequences.

When repayment lapsed, recovery agents began messaging her entire contact list, falsely accusing her of fraud and urging her acquaintances to coerce her into payment. She shared:

  • WhatsApp screenshots sent to relatives and colleagues

  • Emails threatening defamation or legal action

This is far from isolated. Numerous reports online describe similar harassment—emotional distress, social embarrassment, and even threats to employment due to these recovery tactics.

How Bharat Loan Harvests Contacts and Uses Them

During onboarding, instant loan apps ask permission for access to sensitive data: the contacts list, SMS history, call logs, and storage. Borrowers often grant access without realizing that this data may later be used as leverage.

Rather than using it for legitimate KYC or risk assessment, Bharat Loan stores users’ contact lists on their servers. If repayment is delayed, their agents then push messages to those contacts—creating social pressure.

This misuse of permissioned data constitutes a serious violation of Indian privacy and consumer protection norms.

The NBFC Partners Behind Bharat Loan

While many reports mention a single backer, Bharat Loan in fact lists multiple RBI-registered NBFC partners on its official site, including:

Each of these NBFCs is responsible for clearing and disbursing loans submitted via the app. The presence of several lending partners complicates accountability:

  • The app claims it is just a facilitator.

  • The NBFCs claim to merely act as lenders.

This separation allows both sides to avoid responsibility when borrowers face harassment or data misuse. RBI regulations, however, do hold NBFCs responsible for the conduct of their lending platforms and agents.

Why These Practices Breach Indian Law

1. Violation of Right to Privacy
The Supreme Court of India affirmed privacy as a fundamental right under Article 21 in 2017. Harvesting and misusing contacts without informed consent clearly breaches this ruling.

2. IT Act Breaches
Sections 66C, 66E, and 72 of the IT Act criminalize unauthorized access, privacy violations, and disclosure of personal data—exactly the scenario presented by contact scraping and recovery messaging.

3. RBI Guidelines
In recent guidelines, the RBI emphasized that only essential permissions may be requested by loan apps—and only for functional use. Accessing and misusing contact lists for recovery violates these rules and constitutes unethical lending.

4. Consumer Protection Act, 2019
The law prohibits exploitative practices, including misuse of personal data and psychological coercion for collection. Public shaming through unscrupulous recovery is actionable as an unfair trade practice.

What Affected Users Can Do

If you’ve been targeted by such coercive recovery tactics, here’s what you can do:

  • File a complaint with RBI (Sachet portal)
    Upload all evidence—screenshots, emails, and messages.

  • Report to Cyber Crime Cell
    File online FIR at cybercrime.gov.in citing harassment and unauthorized access to personal data.

  • Report the App on Google Play
    Privacy violations and abusive conduct can prompt Google to suspend or remove the app.

  • Send a Legal Notice
    A legal advisor can serve notice to both the app developer and all NBFC partners—for infringement of privacy rights and consumer laws.

  • Raise Awareness Publicly
    Share your experience on platforms like Reddit, X (Twitter), Quora, or film short walkthroughs on consequences. Public visibility helps spur pressure on regulators and platforms.

Urgent Reforms Needed to Protect Borrowers

Allowing such conduct undermines the trust in fintech solutions. Regulators must:

  • Ban loan apps from accessing contact lists entirely

  • Require full disclosure of all lending NBFC partners, both in the app and app store listing

  • Hold NBFCs vicariously liable for misconduct by their platforms

  • Launch active investigations into apps with repeated violations, like Bharat Loan and its partners

  • Create fast-track redress systems under the Data Protection Board or RBI Ombudsman

RBI standards already emphasise grievance redressal mechanisms, but enforcement is weak. Until this changes, borrowers remain unprotected.

Final Thoughts

The experience of the borrower who approached us is a stark reminder: digital convenience cannot come at the cost of dignity and privacy. Bharat Loan’s practices—enabled in partnership with multiple NBFCs—are not only predatory but unlawful.

Borrowers must be respected, not humiliated. Regulators must step in before more lives are ruined by these predatory tactics veiled as fintech innovation.