Illegal App Loans In India

The following article is entirely informative and aims to assist you in making wise choices in the future.

With the ease of obtaining loans increasing day by day, there has also been a surge in fraud activities. According to a study conducted by CloudSek, a cybersecurity software company, between July 22, 2023, and September 18, 2023, their experts monitored 55 fraudulent loan apps targeting individuals. Additionally, they identified more than 15 obscure payment gateways operated by individuals of Chinese origin seeking to evade detection.

Now, let's delve into why incidents like these occur. One common reason is the urgency and the availability of loans in a speedy manner. Consider this scenario: you urgently need money and have two options. One is to take a loan from a bank, which will be available in 4-5 days, and the other is to use an aggregator where the loan can be available in just a couple of hours. Naturally, you may opt for the aggregator providing a quick loan. While it may seem like the best option at the time, in the long run, it comes with a higher interest rate and increased collection activities.

Another contributing factor is the lack of awareness and knowledge about these companies, fueled by the rise in online fraud activities. These companies may present themselves amicably during the loan enrollment process, but once your loan is approved, the tone can change to harassment. In some cases, collection activities commence even before the loan is officially approved.

When harassment occurs in such cases, it often involves messages in abusive language, creating a miserable situation. At FREED, we believe that borrower rights are of utmost importance, and we advocate for the blacklisting of such companies, preventing them from entering the public domain.