What is a "loose character" in Indian English?

Solution 1:

character (noun)

the mental and moral qualities distinctive to an individual.

"running away was not in keeping with her character"

— Oxford

"Loose" is a literal translation of the Urdu/Hindi word dheela. It implies imperfect or bad. E.g. kaam dheela kiya hai i.e. "The work has been loosely done" implies that the task was ill-performed. Hindi/Urdu aren't very literal languages. (Personally, it drives me a little insane at times.)

"Loose character" means someone with bad moral qualities. It is most commonly used when talking about someone with a (perceived) history of extra-marital romantic relationships. Romantic relationships are not generally approved of by society in the sub-continent.