Explained: What is the instant loan apps case? How were victims lured?
It is a racket in which instant personal loans are offered through mobile apps at exorbitant interest rates by unauthorised lenders. Written by Sreenivas Janyala , Edited by Explained Desk | Hyderabad | Updated: December 31, 2020 1:28:44 pm
Of the numerous apps that are available on Google PlayStore, most do not have any tie-up with any banks or Non-Banking Financial Institutions.
A woman employee of Telangana Agriculture Department and a software engineer
died by suicide last week after they were humiliated and blackmailed by tele-callers and recovery agents of a mobile app instant loan company. Their personal details were posted by the company on social media and labelled them defaulters and used abusive language.
Loan apps are scamming Indians by hiding the ugly details in terms and conditions, misusing data
There are several such platforms that have come up promising good returns, before revealing the bad conditions applied and then turning ugly with abuses and threats.
Manas Tiwari | December 24, 2020 | Updated 11:54 IST
Several money lending apps lure borrowers by offering instant loans.
Highlights
They charge significantly higher interest rate.
Users are threatened over calls.
Mr X lost his job in May in the aftermath of COVID-19. He had few expenses to take care of children s school fee, car EMI, house EMI, medical needs of parents. For few weeks, he survived on savings. Then, he got to know about a money lending app that gives instant loan and reasonable time to return that. Going through a difficult phase in life, Mr X took a loan of Rs 30,000, hoping to find a new job and return the sum.
Crackdown on illegal instant loan apps; 17 arrested from Delhi, Gurgaon, Hyderabad
Based on complaints, the Hyderabad and Cyberabad police have registered 16 and 7 cases, respectively, against such companies. December 23, 2020 10:30:06 am
The Cyberabad police registered a case under sections 420 (cheating), 506 (criminal intimidation) of IPC and also invoked section 66 of the IT Act, section 3, 10, and 13(1) of the Telangana Money Lenders Act and started an investigation.
Cracking down on illegal app-based instant microloan lending companies, Hyderabad police arrested 11 persons from Delhi, Gurgaon and the Cyberabad police arrested six others here. Based on complaints, the Hyderabad and Cyberabad police have registered 16 and 7 cases, respectively, against such companies.
Dec 22, 2020, 17:02 IST
HYDERABAD: The sleuths of Cyber Crime PS, Cyberabad nabbed six members in connection with instant personal loan apps mafia like Cash Mama, Loan Zone and Dhana Dhan. These app were operated under companies named Onion Credit Private Ltd with Directors K. Sarath Chandra, K. Pushpalatha and CRED FOX Technologies Pvt Ltd with directors K Sharath Chandra and V Chaitanya. A total of three Laptops, 3 Desktops, 22 Mobile Phones were seized and 18 bank accounts with an amount Rs. 1.52 crores were freezed.
This investigation comes in the wake of a unemployed techie’s death by suicide in Hyderabad and an agriculture extension officer in Siddipet district in the last few days, allegedly owing to harassment and humiliation over repayment by this mafia.