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Instant loan apps lure loan seekers under the guise of providing easy lending and running unethical practices, high processing fees, unexplained interest and penalties and identity theft, most great scam to be transparently exposed. Instant loans without any official documentation may seem like a boon or a miracle to borrowers; and of course, this miracle happens in India, where several loan apps offer personal and unsecured loans within minutes, but the experience turns out to be a terrible nightmare once you fall into their traps. AspKom Eixil Foundation Since 2019, it has been trying to help borrowers who have fallen into the traps of such scams, but the solution to this problem still requires strong and active laws to be crafted by the government and the RBI. Countering the loan application recovery process requires cybercrime experts and a brief understanding of the loan approval, disbursement and repayment process….
and until then, awareness is the only key to protecting yourself.
The next time you receive an SMS like this, Wish you luck if you click on their link
Your loan of Rs. X, XX, XXX is approved by ************. 100% Approval Rate and Instant Bank A/C Transfer. Check your loan status here:
Some common marketing gimmicks followed by these scammers include:
- A fancy message (SMS, Whatsapp message or Facebook promotions) claiming that you can get XX, XX, XXX Rs. loan approved but as soon as you download their app and fill in your details (Aadhar card, PAN card, bank details and KYC documents), amounts are reduced to XX, XXX (4 digits) and duration to days, high interest rates with any Processing fees.
- Some claim that you have to become a member or pay certain amounts to get the loan disbursed to your account or to increase loan amounts, terms or lower processing fees
- In some apps loan process of transfers/refunds is done through UPI and if you ask them for bank accounts for refunds they just refuse and force you to pay via Link or UPI
- Abusive customer service or recovery agents hired by most lending apps, to threaten customers and they openly threaten on your whatsapp to defame, hack, use (more specific word will be misuse) your contact list or mobile data.
Compete history on upcoming loan scams
For now only one word – ATTENTION
The money lending scam came to light when Hyderabad police froze 75 bank accounts holding Rs 423 crore. The scams were carried out through 30 mobile apps none of which were approved by the Reserve Bank of India (RBI). A preliminary investigation into these financial transactions revealed that around 1.4 crore of transactions worth nearly Rs 21,000 crore have taken place so far. The case is examined by the Directorate for Enforcement (DE)