Online loans

Easy online loans lead customers into a vicious loop – The New Indian Express

Express press service

CHENNAI: A simple search of the Google Play Store shows hundreds of apps, such as Udhaar Loan, Snapit Loan, Rupee Bazaar, Rupee Factory, OK Cash, Paisa Loan, Cash Advance, Top Cash and iEasy Loan, among others, which offer instant cash. Although the names of the applications differ, almost all of them use the same mode of operation.

While installing the app, it is required to submit details of Aadhaar card, PAN card and banking information along with permission to allow access to contacts. Customers can benefit from a loan of the order of Rs 5,000 to Rs 50,000, instantly. When applying for a loan of Rs 5,000, the application withholds Rs 1,500 as interest and processing fee, and gives only Rs 3,500. But, when the lender has to return it in a short period of time, it is required to repay the full Rs 5,000, a few alleged.

Many more like Aravind
A 26-year-old man, who worked for a private company, lost his job and paid over 1 lakh, all because he took an instant loan of Rs 5,000. Speaking to Express, Baskar (name changed) said: “As there were no difficult procedures, I was happy that I got an instant loan. I was asked to refund the money within seven days.

However, about 10 minutes before the stated deadline, I received a call from a man claiming to be one of the application staff, who abused me for not returning the money immediately . Baskar was also threatened with messages.

“It was only then that I realized that I had allowed the app to access my contacts and they had taken control of them. They also sent messages to some of my contacts saying that I cheated them,” he said. Not having much money on him to repay the amount, Baskar resorted to another such mobile application, through which he received 10,000 rupees.

He used it to pay off the first loan, but got caught in an indefinite loop. Within two months, he was in debt of Rs 2.5 lakh. Unfortunately for Baskar, such a message from a “collection agent” reached the director of his company, who was also abused by them. “I quickly lost my job. Now I have no job and I am sitting in a pile of debt,” he lamented.