New Delhi: In a recent social media post, Nithin Kamath, Founder & CEO of Zerodha & Rainmatter, highlighted the alarming rise in suicides caused by the harassment tactics employed by shady and illegal predatory loan apps. Kamath urged victims to take action and provided resources for reporting such incidents.
According to Kamath, these loan apps lure borrowers with exorbitant interest rates ranging from 100% to 200%. Additionally, users unknowingly grant access to their personal information, including contacts and photos, upon installing the app. When borrowers fail to repay their loans, they become victims of relentless harassment, as the loan agents start contacting their contacts with abusive calls and morphed lewd pictures.
Kamath expressed his disbelief at the extent to which individuals are required to divulge personal information to secure a loan, highlighting the absurdity of borrowing money at interest rates as high as 50-100% per year. He emphasized that these apps operate illegally and are unregulated, making it crucial for app stores to take stronger measures in filtering out such dubious apps from being listed on their platforms.
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In light of this alarming situation, Kamath urged victims to seek help and justice by filing complaints through the official cybercrime portal at https://cybercrime.gov.in or by calling 1930. He emphasized that existing laws are in place to protect individuals from harassment.
Nithin Kamath’s advocacy has brought attention to the plight of victims and the urgent necessity for action. The incidents of suicides and the associated harassment serve as a sobering reminder of the dangers posed by unscrupulous loan practices. The collective effort to expose and eradicate these predatory loan apps underscores the importance of consumer protection and the need for stronger regulations in the financial technology sector.
Central Govt Bans Some Chinese Loan Apps In Recent Times
Earlier, the Government of India took a stringent action against some Chinese loan apps for harassing mentally and physically to customers and sending sensitive information to China. The apps were banned from Google Play Store in violation to Indian policies and alleged for charging exorbitant prices.
