Predatory personal Loan Apps are among the greatest frauds now practiced in India. Because of the predatory lending practices and extortion used by fast loan applications, India has seen a high number of suicides.
The majority of the apps have been connected to money laundering and may be traced back to China. These apps have been scrutinized by the Union Home Ministry, which is rumored to be about to ban 300 of these apps, according to News18 (opens in new tab).
The Enforcement Directorate, Serious Fraud Investigation Office, Intelligence Bureau, R&AW, and Reserve Bank of India are also constantly monitoring these apps.
The Home Ministry’s response follows a number of reports that were shared by the state governments of Telangana, UP, Gujarat, Delhi, Punjab, and Odisha.
In India, there are close to 1,000 of these loan applications, and more are being introduced routinely, state police officials claim. According to a recent investigation by the Hyderabad Police detective division, a Chinese national operating four shell firms was responsible for transactions totaling Rs. 21,000 crores.
These apps should have been banned earlier
Numerous Chinese apps and games, including PUBG, Free Fire, BGMI, TikTok, Helo, and others, have been blocked. Due to their Chinese heritage or ties to China, all of these apps were outlawed.
These predatory loan applications actually function by extorting money from regular people in addition to having connections in China. These were the apps that were originally intended to be prohibited.
But indeed, the union government has finally paid attention and will outlaw these kinds of dubious apps will return under a different name and say the same things once more.
We’ll hold off using these apps until they are officially outlawed. We will wait as the ban has not yet been put into effect and this story is not an official announcement from the government.
