V Kavita of Hyderabad took a loan through an app during the Corona epidemic. She could not repay this loan on time.
The employees of this app called her at seven in the morning on the last date to repay the loan. Since she was busy with other tasks, she could not check the phone.
The next call went to Kavita’s younger brother’s wife’s relative. Even Kavita had no close interaction with her.
When the employees of the app asked her if she knew Kavita, she said that ‘Yes, she is her relative’.
On this, the employee told her that Kavita had taken a loan from their company and She had given her number to them. In such a situation, now they should repay this loan.
But she got nervous due to such demand and she told this whole incident in her family. The whole family distanced themselves from Kavita.
Similarly, Siddipet’s Kerni Monica, who was a government employee and worked in the agriculture department. She also took a loan from one of these apps for her personal needs.
When she missed paying the dues, the loan app sent her photos to all her contacts on WhatsApp and wrote that Monica had taken a loan from them and if she could see them somewhere, tell her to pay the loan
According to Monica’s family, she could not bear the harassment and committed suicide by consuming poison.
The employee of the app abused Monica and her family and blamed them for not repaying the loan.
Santosh, who works in Ramagundam, committed suicide by being harassed and insulted by these apps.
In a video, he mentioned his agony. He gave up his life by eating medicine to kill insects.
Earlier in Rajendra Nagar, another person committed suicide due to harassment of these loan apps.
Mobile apps snatching people’s lives
Through these loan apps, if there is a slight delay in repaying loans from the borrowers at huge interest, then they often face threats and lewd abuses.
This whole situation has become a torture for such borrowers.
These loan companies give quick money to run the work in accidental situations without any underwriting. Later, they collect big money from the borrower.
The cases given above are just a few sentences of uncontrolled wrong activities being followed by these companies.
People usually like to borrow money from banks or from their acquaintances. After the arrival of mobile phones, some people have started raising money on interest through them.
If you put your details in the mobile app, then they give you a loan. You have to return this loan later. As long as you pay the money on time, everything is good. Things get worse when you delay in repaying the loan amount.
Secondly, the easier it is to take a loan, the more difficult it is to repay. For many people, these loans come as a period of mental torture.
Only the cases given above are not examples of people getting into trouble due to these app based loans. There are many people who have suffered severe harassment due to these loans.
People who are very educated and know how to use the phone, often take loans from these apps for their needs, but when there is a delay in repaying them, they have to face terrible difficulties and stress.
What is the cost of taking loan from an app ?
Usually, when the loan is taken from a bank or any other financial institution, the interest rate is one to one and a half percent per month. However, there is no upper limit on interest in these app based loans. There is no paper in them.
Interest rises in these loans. Interest is fixed on the basis of days. Interest is decided on a week basis.
Penalty is levied on the principal due to delay in repaying the loan. Also, penalty is charged on interest.
Normally, interest is not assessed anywhere on the basis of the month, but in these apps, this assessment is done on the basis of day, week and month.
Banks and other non-banking financial institutions (NBFC) lend a processing fee to someone if they give a loan.
This fee is based on the loan amount. This processing fee is usually less than one percent of the loan amount. This means that if you take a loan of five lakh rupees, then you have to pay less than Rs 5,000 as processing fee.
However, app based loans do not run like this. They take a processing fee of four thousand rupees for a loan of only five thousand rupees.
In such a situation, the question arises that why do people take this loan after all?
The reason for this is that these apps do not ask for any proof of your income. They do not see your CIBIL score. Whereas no banking institution or NBFC gives you loan without checking your CIBIL score.
A CIBIL is a score that indicates your ability to repay a loan.
It also shows that you have not made any delay or default in repaying your previous loan.
On the basis of this, your score is decided and the bank uses this score in assessing the ability to repay your loan while giving loan. The higher the CIBIL score, the stronger your chances of repaying your loan.
Some apps verify income proof and CIBIL score and recover their given debts through a process. However, such apps are selective.
While there are a large number of apps which are looting in the name of giving loans. Such apps are taking advantage of the emergency needs of the people and the convenience of getting instant loan.
In the name of GST
Usually we pay GST to the government for every kind of service. However, these apps are not registered under GST. These apps charge GST from those who borrow from them, but this money is not paid to the government.
This means that without coming under the purview of GST, they also charge GST money from their customers.
If GST is taken, then the GST number of that institution should also be given. However, these apps do not reveal any such thing.
Fake legal notice
If the repayment is delayed, fake legal notices are sent over the phone. It says that since you have defaulted in repaying the loan taken for us, in such a situation, we are taking action against you or going to take action. In these, it was said that you should be ready to be present in the court.
However, these notices are fake. These apps also send similar notices to relatives and friends of the debtor. People who do not know about all this are scared to see this notice.
After taking loan from these apps, we have to repay them within the stipulated time. If this is not done, these apps start making phone calls to you continuously at seven in the morning on the deadline for repaying the loan. They call you dozens of times. And their language is threatening.
If for any reason you missed a day from the deadline, then just your trouble starts.
Apps employees start with such an order, “Start Beg, but return the money.”
This is their first stage of action.
In the next step, they start calling your relatives. They tell them that you have given their reference. They tell your relatives that now you have to repay their loan.
With this, the relationship between the borrower and his relatives either ends or worsens. These apps call many of your relatives in this way.
In the last phase, they start using your given pictures while taking loans. They start putting your photos on WhatsApp groups.
They form a group of friends and relatives of the borrower and put a photo of the borrower in it and give the caption, “The person is a fraud.” Or “This person is avoiding paying money.”
This persecution does not end here. It is said that you collect all hundred rupees from your relatives and repay your loan. All this is said in a very bad style.
Kavita says, “We are not saying that we will not repay the loan. I run a small business. I had to borrow money at the time of Corona. But, they do not want to listen to anything. Here I also Tell them to give me at least an hour to go to the bank. “
They scream, “You are not a woman? You do not have children? There is no one who can deposit money in the bank?”
Kavita says, “They start abusing.”
Where do they get their numbers?
If we install a new app in every smartphone, then we are asked for some approval. Usually, while installing the app, we click on OK without reading the details of these approvals and agree to all types of approvals.
Giving these approval means that the app can access all your photos and contact numbers and use them as desired.
With the pressing of the OK button, all the borrower’s contacts reach the people running the apps.
The borrower does not even know that after taking the loan, all the contacts of his phone will go to the hands of the apps.
Kavita says, “When my relatives got a call, I was shocked. But, when I thought about it, I came to know that they had taken all these numbers while installing the app. Now the whole family has kept a distance from me. “
Even now the police is also investigating from where that much money comes from these apps to distribute to the people.
But, till now the police have been able to find only such people who call and threaten people from call centers. Further investigation is going on in this matter.
Is repaying debt wrong?
When we take a loan, we have to pay that money. But, there is a way to make this payment, it has to follow the rules set by the government. Interest rates should be reasonable in such loans.
Those who give these loans have to tell how much they are charging for what. These charges should be within a radius.
These institutions should give people time to pay money. However, these institutions do not accept any such regulation. This is the real problem.
There is another aspect of these apps as well. It has happened in the past that some people borrowed money from these apps and returned the money according to the interest rate of the credit card.
A person who had borrowed money from these apps said that he had not behaved so badly.
Among the hundreds of loan paying agencies, there are only a few who are running according to the regulations. A police officer told the news that the rest of the agencies harass people and their aim is to rob people.
What does the law say?
The Reserve Bank of India (RBI), which regulates banks in India, has also not made any regulations for these apps.
In such a situation, the police is trying to take action against these apps based on the laws already in place. These laws include Banking Regulations, IPC, IT law.
The Cyberabad police of Telangana is investigating it. So far they have questioned dozens of people.
Police have also registered cases in Andhra Pradesh. Andhra Pradesh Police has also issued a special NOC.
Role of china
It remains to be clarified about what is the role of Chinese institutions in these apps.
Some people say that people are using servers in China, but some people even say that Chinese financial institutions are putting money in these apps.
The police is investigating this On 25 December, the Cyberabad police arrested four people, including a Chinese citizen, in a case against loaning apps.
Cyberabad police has informed that they have arrested the head of Cubvo Technology Private Limited, which is a Chinese citizen. Apart from this, three other people have also been arrested.
This organization has been registered as the head office in Delhi and was named Skyline Innovations Technologies.
In this company, Jixia Zheng, Umapati was working as a director.
This company has developed 11 loan apps. This company is recovering money on a large scale and its working methods include threatening. Currently, the company’s representatives are in police custody.
What does RBI say?
Only banks registered with the Reserve Bank and non-banking financial institutions (NBAFC) operating in accordance with the laws of the state can only give loans.
For this reason, background verification of the lending mobile apps should be done.
You should not give your ID documents to any unauthorized apps or unfamiliar people.
You should complain about such apps to the police or satche.rbi.org.in.
RBI has issued an advertisement stating that if an institution registered with RBI is giving online loan, then this thing should be clearly stated in advance.
Similarly, names of financial institutions registered with RBI will also be available on the RBI website.
What do the experts say?
Concerns are arising on a large scale about fin tech companies (a combination of finance and technology).
RBI is preparing to deal with them. It is not right to take loans from such companies just because of the fact that you get loan in a pinch.
Now the situation has become so bad that not only companies but people have also formed groups and they are distributing loans through such apps.
Cloud Funding Loan: This means that if you have a thousand rupees, you can also distribute the loan.
When credit card companies started, similar problems were also encountered.
Finance expert Kundavarapu Nagendra Sai told the news that if someone is distributing a loan, it does not mean that we take a loan from him.
Even if someone is in need of money, he should go to trusted banks, government and private banks and other RBI recognized financial institutions for loans.