To run the house, he had taken a loan from the instant loan app

To run the house, he had taken a loan from the instant loan app

first story: On December 16, 28-year-old V Sunil hanged his five-month-old son to death. He then committed suicide by going to another room. Sunil, who lives in Rangareddy district of Telangana, lost his job during the lockdown. But, he could not pay it.

His loan taken in thousands turned into a loan of 2 lakhs. The people of the loan giving app would call them and use lewd abuses. Used to threaten to block FIR and bank account. Troubled by this, Sunil chose death.

another story: On December 12, 24-year-old Kearney Monica consumed poison. He died two days later. Monica was the Agriculture Extension Officer. He had helped some farmers by taking a loan of 5 thousand from the Instant Loan App. 6 lakhs.

Due to non-payment, the loan app users sent his photo to all his contacts on WhatsApp. It is written in it that Monica has taken a loan from him, if she sees him anywhere, then ask him to return the loan amount. Monica could not bear the humiliation and consumed poison.

Third story: On December 14, 36-year-old Santosh, a resident of Telangana’s Nalgonda district, consumed poison. Santosh was the site in-charge of Ramagundam Fertilizers and Chemicals Ltd. He died on 23 December.

Santosh told in the video sent to his friend how he got trapped in these loan apps. Santosh no credit check payday loans Parsons TN borrowed a total of Rs 51,176 from four different loan apps during the lockdown. But in a few months, 50 thousand only interest amount had been paid on him.

So far, Hyderabad Police alone has registered 27 such cases. About a hundred cases have been reported in different areas. About 30 people, including three people of Chinese origin, were arrested in the last week’s crackdown. After the matter came to light, the police commissioners of Hyderabad, Cyberabad and Rachakonda have contacted Google and asked them to block about 200 such apps.

  • This racket includes mobile apps that offer instant personal loans. You can easily download them from Google Play Store or Apple App Store. These apps charge up to 35% interest on the loans they offer. They are not affiliated with any banking or non-banking financial institution.
  • After downloading the app, you have to upload your personal details, three months bank statement, copy of Aadhar card and copy of PAN card on the app. After this process of few minutes, you can get a loan of one thousand to 50 thousand.
  • This loan is for a period of seven days to a few months. Various types of fees are levied on this loan along with high interest rate. For example, if someone takes a loan of 5 thousand, then the app company takes Rs 1,180 only in the name of processing fee and GST. That is, you took a loan of 5 thousand and you will get Rs 3,820.
  • On the other hand, if you take a loan from banks and other non-banking financial institutions, these processing fees are usually around 1% of the loan amount. This means that if you take a loan of Rs 5 lakh, then you have to pay less than Rs 5,000 as processing fee.
  • Such apps charge interest on month, week or even day wise basis. For this, they have set up call centers in cities like Gurgaon, Hyderabad. Where tele-callers and recovery agents talk to the borrowers.

Within a few months the loan turned into a loan of 2

According to the Telangana Police, there are many apps offering such instant loans. These include Cash Mama, Dhan Dhanadhan Loan, Cash Up, Loan Zone, Cash Bus, Mera Loan, Hey Fish, Monkey Cash, Cash Elephant, Water Elephant, Quick Cash, Loan Zone, Loan Cloud, Installment, InstaRupee Loan, Flash Rupee-Cash Loan , mastermelno cashrain, getrupay, epay loan, panda icredit, easy loan, rupay click, okash, cashmap, snapit, rapid rupay, readycash, loan bazar, loanbro, cash post, rupigo, cash port, rush, pro fortune bag, rupaylon, Apps like Robocash, CashTM, Borrow Loan, Credit Free were included in this. Some of these were run by companies named Onion Credit and Credfox Technologies.

  • As soon as you complete the formalities after downloading the app. The loan money gets in your account. The borrower has to share the phone number of himself and his family with the app company.
  • With taking a loan from one app, you start getting calls from 20-30 more such apps. These people offer to give more loan to the customer. Many people take more loans from these apps. Loans availed from these apps attract an interest rate of up to 35%. If the installment is not paid on the due date, from the next day, a penalty of up to Rs 3 thousand flat is levied every day.
  • Many people take a loan from the second app to repay the first loan and the third app to repay the second loan and with this they keep falling in the trap of these loan apps.

In Telangana, in the past, cases are being registered continuously against the companies giving loans through the instant loan app

The biggest reason for this is that these apps do not ask for any proof of your income before giving the loan. Do not check your CIBIL score. CIBIL is the score by which the lending companies look at your ability to repay the loan. This shows whether you have made any default in repaying your previous loan. Some apps check your income proof and CIBIL score. But, such apps are few.

  • In June last year, RBI had issued an advisory regarding these apps. In which it was said that there are many apps which are not giving information about which bank or non-banking financial institution (NBFC) they are associated with.
  • By the way, RBI has also not made any regulations for these apps. Only RBI registered banks and NBFCs working according to the laws of the states can give loans. For this reason, before taking a loan from the loan lender’s mobile apps, make sure to verify its background.

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