These loan apps charge exorbitant interest rates of almost 40% per week and if the borrower does not repay the full amount one day before the due date, all his contact persons start receiving messages and abusive calls. Often this humiliation and threats throw the harassed borrower into a deeper mess when they take out another loan to repay or even take another extreme step.
“I applied for a loan of Rs 9,000 through a mobile app as I needed money to pay part of the bank loan for my motorbike and my salary was delayed. I only received Rs 4,500 which were deposited directly into my bank account even though I did not share my bank details with them,” said Civil Engineer Hirak Prajapati (name changed). interest and service charges.
“My due date was Sunday, but I started getting abusive threatening messages and calls 24 hours before the deadline. I told them I would pay them back a day later, after which they started to send messages to my family and friends,” Prajapati said, adding that his contacts had been informed that he was not repaying the loan amount despite multiple warnings.
Deep Naik, a carrier, applied for a loan of Rs 15,000 through a mobile app and received only Rs 9,750. He too received similar abusive messages and calls when he failed to repay the amount in one week. “I was shocked when the recovery agent messaged my family members’ contact numbers. He also threatened to start the harassment if I didn’t return their money,” Naik said. extortion and harassment, Naik eventually approached the police and applied an FIR.