Nowadays it is becoming big news and the official authority is concerned about the loot that is happening due to illegal loan apps. An alarm of awareness is raised by the authorities about illegal loan lending apps, which are fake lending apps and can make you lose a lot of money.
Need of money and business is riding the wave of change, because of the pandemic. This is leading to lending that is moving to a steep growth trajectory in India. It is true that many Chinese lending apps in India have extorted money from people on the pretext of high interest rates.
The masterminds behind such extortion rackets and running these illegal loan lending apps with the help of citizen. The Reserve Bank of India have recently seized 1100 illegal loan apps. There were people involved in the scam who were in contact with Chinese nationals who ran the illegal loan app. They worked for them and earned a lot of money as commissions. Many illegal call centres were shut down due to manipulating people.
Approximately 60 percent of cybercrime cases are related to illegal loan app lending and fraud in 2020. As digital fraud cases rise, the central bank is re-examining the Know Your Customer program to identify and correct inadequacies.
They target elderly and young people who are jobless, suffering a depreciating financial situation, and unable to pay for medical care. They eventually enticed millions of Indians to download the application with their attractive advertisement to make their ends meet.
Why do people lag in dealing with technology?
A nation that was majorly affected by the pandemic soon became a breeding ground for swindlers looking to exploit gullible people. India lags behind in technology gigs, and due to easy access to money, fraudsters are able to take advantage of it. Knowing about the program and taking precautions can save you from harassment and extortion from Chinese loan lending apps.
How do these Chinese loan lending apps fool people around?
Chinese loan lending apps provide instant and short-term loans without legal verification. Borrowers are enticed with instant loans and charged significantly higher interest rates in return.
How do these illegal loan apps attract users through advertisements?
Fraudsters advertise limited offers and instant loans of huge amounts in order to attract gullible borrowers. Through this tempting and appealing advertisement, borrowers make a quick decision without considering the implications.
Borrowers should be aware of this type of fraud and take the following precautions when conducting financial transactions.
Confirm RBI approval
All the lending loan apps operating digitally should be registered with the Reserve Bank of India or should be working with a non-banking financial company (NBFC) that is registered with the Reserve Bank of India as well. Loan apps that are not registered with the RBI are prohibited from lending money.
It is recommended that individuals who take out a loan from a digital lending app ensure that these apps are registered under RBI, as well as checking their credentials on the RBI website is necessary.
Recognize the red signs
It states that illegal lending loan apps do not have a website and do not own one. It is itself a warning sign for borrowers not to download any such loan application if the company does not have an official website.
You should be aware that they are more keen on asking for your personal information.
The Borrowers should also note that any genuine NBFC/ Bank will never ask for payment before processing the loan application.
Deny app permissions
One of the primary motives of illegal lending apps is to collect data by fraudulently taking numerous app permissions from the user and misusing it later.
What should you do if you or someone you know has been affected by illegal loan apps?
If you or someone you know has been a victim of illegal loan apps, there are solutions for you. SingleDebt can help cease harassment from these agents and handle the legal side for you. We urge you not to resolve this alone as this can lead to further harassment. Contact SingleDebt on +91 961 910 3594 or fill out the form either on the home page or contact page.