Easy Loan Through App Can Put You in Big Trouble
There are many apps that promise hassle-free loans within minutes. Such apps, once downloaded, obtain your contacts, photos and ID cards and later use that information to extort money from you.
When customers don’t pay on time, and sometimes even when they do, they share this information with a call center, where young agents of the gig economy armed with laptops and phones are trained to harass and humiliate people for paying the loan.
Taking a loan has now become very easy and simple. Now most of the people do their work through EMI and loan only. Taking advantage of this, loan giving apps fraud you in the name of giving loan. The number of loan takers in India has increased rapidly in the last few years. This is the reason that now a loan is easily available on an app while sitting at home. You no longer need to go to the bank like before.
Along with Fintech companies, financial institutions, mobile apps also give you loan within a few minutes, but due to this digitalization, the problem of loan app fraud has also increased a lot. The illegal business of trapping people by giving them instant loans through apps and then harassing them is running rampant in India, Asia,
Africa and other countries of Latin America. Recently a reputed newspaper in its report has revealed that at least 60 Indians have committed suicide after being abused and threatened by such apps. In such a situation, you should keep many things in mind while applying for a loan, especially to avoid fraud through loan apps.
Table of Contents
Apply Only Through Trusted Apps
Perhaps you do not know that most of the loan apps and Fintech companies through which you get loan are unauthorized. According to a working group of RBI, out of 1100 digital loan giving platforms operating in India, 600 have been found illegal. These apps and Fintech companies give you loans at higher interest rates and other charges and if you delay even a little in loan repayment, these apps will put you in trouble.
These Companies Mislead People
These debtors often engage in cybercrime to lure a potential creditor. They make digital documents and web pages to look authentic. Such apps and Fintech companies also mislead creditors into believing that they are acting on behalf of a legitimate Fintech company. Various kinds of temptations confuse you and after which these apps exploit you completely by luring you in.
Take Care of Your Privacy
Often people submit various personal documents in the loan app while applying for a loan. Such unauthorized apps access private folders like messages, contacts, files etc. in your mobile phone and later that secure data and confidentiality is taken full advantage of. While applying on any app, take special care of your privacy and avoid giving your personal information.
Lack of Transparency
Illegal apps have no contact with regulatory bodies due to which they avoid becoming public. This is the reason that there is less transparency in their terms and conditions, due to which people become their victims.
Use of Unfair Marketing Techniques
Apart from privacy issues and unethical collection practices, these loan giving apps use unfair marketing techniques. RBI has issued strict guidelines against such apps on the method of loan recovery and has also warned of taking strict action against these apps and Fintech companies who do not comply, but every now and then they keep spreading their web.
