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In India, loans are easily available with digital app, but many times the borrowers are harassed so much that they have to give up their lives. However, these lending apps are not authorized by the Reserve Bank of India.
Digital apps pay money to the applicant within half an hour, although instead they charge a higher interest rate and many loan lending apps work simultaneously. Telangana Police has received at least 90 such complaints in the last few days, stating that they are being harassed by the loan lending apps for not paying the loan.
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It is said that those who did not repay the loan on time were constantly harassed by calling on behalf of the loan app company, messages were sent on mobiles, even fake FIRs and court notices. The people of the app company would also insult those who did not repay the debt in front of relatives and people of the neighborhood. According to a newspaper report, three people, including an engineer, have allegedly committed suicide in the last one month after being harassed by the harassment of such app based companies.
According to Hyderabad ACP (crime) Shikha Goyal, "16 people have been arrested so far in the loan app fraud case. Initial investigations have revealed that four companies are involved in 30 loan apps." According to the news agency ANI, the police has frozen about 10 bank accounts. A total amount of Rs 80 crore is deposited in these accounts.
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The Indian head of an instant loan app was arrested from Delhi Airport in a dramatic manner on Wednesday while he was trying to flee to Shanghai via Frankfurt. His photograph on the passport and the mobile of the employee working in his company's call center in Gurgaon matched and he was arrested. The name of this Chinese citizen is Zhu Wei aka Lambo. The Telangana Police has so far arrested four Chinese citizens in the loan app scam. The police was involved in the investigation after the scam surfaced and raids were carried out at the company's call centers in Hyderabad, Bangalore, Gurgaon and Pune.
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The police also questioned the employees working in the call center and Lambo went underground during that time. According to reports, loan app companies have done business of around 21,000 crores till now. Apart from Chinese citizens, the police have also arrested the call center runners for the app, they are accused of calling these call centers to threaten and blackmail borrowers.
The police also questioned the employees working in the call center and Lambo went underground during that time. According to reports, loan app companies have done business of around 21,000 crores till now. Apart from Chinese citizens, the police have also arrested the call center runners for the app, they are accused of calling these call centers to threaten and blackmail borrowers.
Companies offering instant loans through the app in a particular way trap the borrowers in their net. Firstly, they charge a higher rate of interest (up to 35 per cent) and threaten to discredit them on arrears. Many times, instead of repaying the first loan, the borrower gets a loan from the second loan app, so that a never ending cycle of debt is created. Being trapped in this cycle, K. Monika, an agricultural officer from Hyderabad, gave her life. According to a report, he took a loan of about five thousand rupees from the app company. When they could not repay the first loan, the company got a loan from another company and in the event of this, 55 apps became liability on them. The loan of five thousand has increased to two and a half million rupees. After getting upset, Monica committed suicide. However, he took this loan to help the distressed farmers.
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The loan app company easily gives loans to such people who have some important documents, such as PAN card, Aadhaar, Aadhaar linked mobile number, salary details given by the company, bank account information, etc. All these documents have to be uploaded on the app and then after scrutinizing the documents, the company transfers the loan amount to the applicant's bank account within a few minutes.
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