Loan Sharks in India

Loan Sharks in India

Have you ever thought of taking a loan from the app in tough times? So you must have come across the word called Loan Sharks in India. I don’t how many of the reader is aware of it, but this is something big and nasty and that’s why I thought to share some findings and give you an idea that how do they work?

I will share the details in parts so that most of the unheard questions can be tackled with this blog.

What is loan Sharks?

As the name tells you that they are like sharks. They are the bunch of people who provide you loans for the short-term period between Rs. 5000 to 50000 with 60% or above interest rates and if somehow you are unable to pay on time, due to obvious reasons, they will be after you. They are basically unlicensed lenders, who are not authorized by the RBI or the bank to provide Loans. Once someone defaults on the loan, they just after you. As you took the loan from the mobile app, they just take out all your number and start threatening you and your near and dear ones and using abusive language to take out the money from the borrower.

How do they work?

After the covid, financial stress has become more evident in lower-middle-class people. So this financial stress creates an opportunity to loan sharks in India. They are offering easy money to the people who are already under stress and looking for a loan and for that Google play store is the playground for them. However, Google is trying hard to remove such apps from the play store but still, these types of apps exist in the play store.

Here are some sample chats from one of our readers who has faced such kind of incidence, as he took Rs.10000 as a loan from the app called Rupeeking and you can clearly see in the chat that, how they deal with people and they have charged massively 60% and processed the loan without any permission. He just fills the form with all the details and the next morning they have automatically deposited the amount in a bank account.

This is just a single chat, but I hope that this gives you an idea of not taking any loan from such apps.

How do You check if the loan app is legit or not?

So whenever you are in need of a loan. The first thing you should do is to ask for help from your relative. I know it doesn’t sound easy, it becomes a very awkward situation to ask for help from a relative but I must tell you that it is easier for you to handle relatives than the loan sharks. So coming up to question.

Things to check, before downloading the app.

  1. Check the app ratings & reviews
  2. Check the critical review first and see what people are saying.
  3. Sometime ratings are fabricated, so check if the review given by the Indian audience

Things to check after downloading the app.

  1. Check the interest charges first and see if its above than the usual rates.
  2. Do not give any access to app before checking it.
  3. Do not share any data with them.

These loan sharks made people die, so many people ended up losing their lives just because of the harassment and cyberbullying. You must see the article from the Times of India, which has published the same in January 2022, where they have shared some facts.

1) More than 1100 Online lenders working illegally.
2) In 2021, 17 suicides were made due to harassment by the loan sharks.
3) 64000 plus complaints were made in 2021 in cyber cells about these loan sharks
4) Complaints are growing more than 31% year on year.

I want all my readers to stay away from these types of apps. Be patient and take loan decisions very wisely. In the end, I must suggest the documentary made by the Discovery channel.

If you have any thoughts, then please comment. Let me know how can I improve more or if you people have any suggestions on the same.

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