Frauds by Chinese Loan Apps

In recent years, India has seen a surge in the number of Chinese loan apps, which promise instant loans with minimal documentation and fast approval. However, many of these apps have turned out to be fraudulent, preying on vulnerable borrowers and using illegal tactics to recover loans. Here's a closer look at the issue of Chinese loan app frauds in India. Background: The first Chinese loan apps appeared in India around 2019, with many of them being launched on Google Play Store. These apps promised quick loans of up to INR 1 lakh with minimal documentation and no credit history checks. They targeted people who were unable to get loans from traditional banks or NBFCs due to their poor credit scores or lack of collateral. To apply for a loan, borrowers were required to download the app, submit their personal and bank details, and provide access to their phone contacts, photos, and other sensitive data. Fraudulent practices: Many of these loan apps turned ...