oppn parties Instant Loans Or Instant Disaster?
OPINIONS : Strongly Expressed

January 29, 2023

People Are Talking About

Welcoming 2023

News Snippets

  • RBI governor Shaktikanta Das says that inflation is easing and the current account deficit is manageable
  • Adani Enterprises FPO sees just 1% subscription on the first day as the stock goes down to Rs 2762, much below the price band of Rs 3112-3276
  • Stocks bleed on Friday post the Hindenburg report as Adani stocks are hammered: Sensex loses 874 points to 59330 and Nifty 287 points to 17604
  • Rs 263cr TDS scam detected by the I-T department. A mid-level officer was the kingpin and had amassed huge wealth
  • Women's U-19 World Cup -India reaches the final by beating New Zealand by 8 wickets
  • New Zealand beat India by 21 runs in the first T20 as spinners choke Indian batters
  • Sania Mirza and Rohan Bopanna lose in the Australian Open finals
  • Sania Mirza and Rohan Bopanna lose in the final of the Australian Open
  • India to play New Zealand in the first T20 of the three-match series in Ranchi today
  • RBI has proposed special purpose vehicles (SPEs) mechanism to sell bad loans to interested investors via securitization
  • JD(U) decides not to attend the Bharat Jodo Yatra finale in Srinagar
  • Hindenburg defends its report on the Adani group, dares Gautam Adani to sue it in the US
  • BJP's talks with Tipra Motha in Tripura make no headway but the party is confident of winning in the ensuing elections
  • Pathan is a super hit at the box office: Rs 57cr in India (worldwide Rs 106cr) on Day 1 and then Rs 70cr on Day 2 which was Republic Day holiday
  • Centre tells Delhi HC that Covid vaccines can't be mixed when taking the second dose
A Mirage2000 and A Sukhoi 30 of the Indian Air Force on a training mission crashed separately, in Bharatpur in Rajasthan and Morena in Madhya Pradesh, killing one pilot
oppn parties
Instant Loans Or Instant Disaster?

By Yogendra
First publised on 2020-12-23 07:42:50

About the Author

Sunil Garodia Yogendra is freelance writer

Are you being bombarded with numerous SMSes asking you to download an app and get anywhere between Rs 5000 to Rs 50000 in your bank account instantly? People facing small and temporary financial difficulties (and after the pandemic, the lockdown, the job cuts and the salary cuts, there is no dearth of such people) are getting lured by these apps, but reports are now pouring in that some of these fly-by-night operators, who often operate outside the regulatory framework, are making life hell for people who have availed their services. Instant loans were called the game changers in the personal loan space. But some operators are giving the entire sector a bad name.

Some of these apps pose a huge data risk as they will ask you for your identity proof and address proof, generally the PAN and Aadhar details. Since their credentials are not established, there is every chance that user data will be misused. Further, these apps apply severe strong arm tactics to recover their loans even if the EMIs are missed for one day. Apart from loan recovery agents, these apps start hounding you on social media and start calling people on your contact list (this information they acquire when you give several permissions while downloading their app). In short, for a small amount of loan, they start the process of name and shame with a vengeance.

There have been reports of people committing suicide when faced with such a situation. The police have been registering cases of harassment and are looking into how to curb this menace. They have started writing to banks and getting the accounts of such operators frozen. But this is at best a knee-jerk reaction. The police will have to work with regulators to prevent such companies from starting operations if they are not licensed. Google, on the other hand, is trying its best to pull down such rogue apps from the Play Store. For the public, it will be better if they make detailed inquiry about such apps and get their loans, however small, from genuine sources.