The Micro Loan Scams of India

2개월 전


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India is a country where Micro Finance is quite popular in the rural areas as people from various villages comes together to form a group and take some Loan from any Bank and they also repay those loans in time. Things were pretty smooth but then Covid happened and a lot of people were unable to pay back their loans and the Micro Finance Banks were in a stage where they were unable to decide whether they should still give out Loans or not. This dilemma gave rise to what we now see are Instant Loan Apps which can be found everywhere on the Google Playstore and they require just about 10 minutes of verification and you might get a loan from them. Sound Easy right, now let's talk about the Predatory side of things.

Yes, most of those Instant Loan Apps are indeed Predatory as they will ask for permissions on your Smartphone that are in no way useful to them. For example, some Apps ask for Contacts, Calendar, Photos, messages, location, battery percentage, etc and they use this data of yours to basically harass you if you are unable to pay your loans on time, and in some cases, they will start harassing you even if you pay your loan on time. There are several instances where the contacts of the users are accessed and they make a WhatsApp group of them and then send in derogatory comments, morphed pictures, and many more.

LOAN STRUCTURE

Speaking about their Loan Structure it varies a lot as the duration of the loan may vary from 7 days to 100 days while the amount is variable at the same ratio, but the shocker is the fact they the interest charged varies from 10-200 percent which as you may think is absolutely ridiculous. Add in the fact that they also harass their users on a constant basis makes this quite inhuman in my opinion as there have also been instances where literal goons were sent to collect loans even before the loan period is over.

SOLUTION

Truth be told there is nothing Google can do about these Apps as if they ban 100 of them another 100 clones would just pop up in days and even if it is possible to screen apps manually it would cost them a lot to do that. But the way this could be solved is to get Financial Literacy and by that each individual can access for themselves whether an App offering you Free Loans is credible or just another Tool to Harass you Online and Offline.

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