In recent years, there has been a rise in the number of Chinese loan apps in India that offer quick and easy loans to borrowers. However, many of these apps have been found to be scams, leaving borrowers with financial difficulties and hurt credit.
The Chinese loan apps typically require borrowers to provide personal information, including their Aadhaar number, PAN number and bank account details. Once the loan is approved, the money is transferred to the borrower’s bank account. However, many of these apps have been found to be fraudulent and have used the personal information provided by borrowers for nefarious purposes.
One of the main issues with these Chinese loan apps is that they often charge exorbitant interest rates, which can make it difficult for borrowers to repay the loan. Additionally, many of these apps have been found to charge hidden fees, such as processing fees, that are not disclosed to the borrower at the time of loan application. This can make the loan much more expensive than originally thought.
Another issue with these Chinese loan apps is that they have been found to have poor or non-existent customer service. This can make it difficult for borrowers to contact the company if they have any issues or questions about the loan. Additionally, many of these apps have been found to be non-responsive, or even unresponsive, when borrowers have problems with their loan or are unable to make a payment.
The Chinese loan apps have also been found to be a major security risk. They have been found to be storing sensitive personal information of the borrowers in unsecured servers. This information could fall into the hands of hackers and cybercriminals, putting the borrowers at risk of identity theft and financial fraud.
In conclusion, the Chinese loan app scam in India has hurt many borrowers. The issues with these apps include exorbitant interest rates, hidden fees, poor or non-existent customer service and security risks. Borrowers should be cautious and do proper research before applying for a loan through any mobile app and should always be aware of the risks involved. It’s also advisable to take a loan from RBI registered NBFCs and Banks, as they are more likely to follow ethical lending practices and are subject to strict regulations.
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