Easy Online Loans Put Customers In A Vicious Loop – The New Indian Express
Express news 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 money. Although the names of the applications differ, almost all use the same operating mode.
While installing the app, it is necessary to submit the details of Aadhaar card, PAN card and bank information as well as authorization to allow access to contacts. Customers can avail a loan in the range of Rs 5,000 to Rs 50,000 instantly. When applying for a loan of Rs 5,000, the application withholds 1,500 Rs as interest and processing fee, and only gives out 3,500 Rs. But, when the lender has to return it within a short period of time, it is required to repay the full Rs 5,000, some have claimed.
Many others 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 out an instant loan of 5,000 rupees. Speaking to Express, Baskar (name changed) said: “Since there were no difficult procedures, I was happy to have gotten an instant loan. I was asked to refund the money within seven days.
However, about 10 minutes before the deadline set, I got a call from a man claiming to be one of the app staff, who mistreated me for not returning the money immediately. . Baskar was also threatened with messages.
“It wasn’t until then that I realized that I had allowed the app to access my contacts and that they had taken control of it. They also sent messages to some of my contacts saying that I had cheated on them, â€he said. With little 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. In two months, he had a debt of Rs 2.5 lakh. Unfortunately for Baskar, one of these messages from a “recovery agent†reached the manager of his company, who was also abused by them. “I quickly lost my job. Now I don’t have a job and I am sitting on a pile of debt, â€he lamented.