Reserve Bank of India has forewarned Indians against unauthorized money lending apps that are increasingly rising day by day, consequently subjecting customers to fraudulent deeds. The threat actors lure the patrons with instant loans, capitalizing on their needs, and then trouble victims for the dues.
What are unauthorized money lending apps?
Money lending apps are rackets where you could get an instant personal loan offered through mobile apps at inflated interest rates by some unauthorized lenders. These apps are easily available on Google Play Store and do not have any tie-up with any banks or Non-Banking Financial Institutes. Any patron can avail the loan within a few weeks or less after updating all the personal information like Aadhar Card, PAN card, etc., details in the app.
The company misguides the patrons into fraud by drastically reducing the original amount of the loan. The modus operandi of the app includes taking and feeding all the personal information of the patron in one particular app and then circulating the phone number across other such fraud apps. The other apps would now call the patrons and lure them into availing more loans. The lender would claim that the patrons are eligible for the loan as they have already verified the credentials from the previous app from which they borrowed the loan. Notably, ‘n’ number of patrons fell into this trap and later regretted the same. In the entire process, there comes a time when the patron needs to pay more than the borrowed amount due to the high-interest rate, GST fees, and other penalties for overlooking the due date.
The worst part comes when these ..
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