Google is attempting to reduce the number of bogus apps. Google has requested more evidence on credit worthiness for apps on the Play Store as part of this. A license from the Reserve Bank of India (RBI) for loan disbursement should also be produced.
Google has also asked it to specify which NBFC loan is being distributed through the app, as some apps are just a platform for non-bank financial institutions to provide services. ;online loan app fraud
Google requested a paper proving that credit apps were legal in January 2021. Google has also revealed on its official blog that it has eliminated apps from the Play Store that do not deliver accurate responses. Google, on the other hand, is stepping up its efforts as more and more apps provide loans and as more individuals fall prey to scammers.
Do you require a loan?
Since 2017, digital lending has been widely used in India. According to the Reserve Bank of India, 22 crore people in India are eligible for loans, but many are unable to receive them due to a lack of understanding of the procedures for obtaining bank loans.
At this period, a few apps with legal clearance for digital loans appeared. The goal was to make money by lending money via a smartphone, which is more extensively used than a bank account. Many fraudulent apps, on the other hand, have taken advantage of this possibility. As of November 2021, 205 fraudulent apps had been removed from the Google Play Store. RBI has detected 600 unauthorized apps, completed procedures and banned 27.
Gives money in exchange for honor
The majority of the apps give small sums ranging from Rs 2,000 to Rs 10,000 with no collateral. Many loans have yearly interest rates ranging from 36% to 50%. Operating expenditures will be charged at a rate of 20 to 25%. Furthermore, 18% of the sum will be deducted in the name of GST. In other words, the borrower will receive less than what was promised. This will frequently be sought in return. If you are late with your payments, agents will phone and intimidate you. If they continue to refuse, the borrower will be forced to make phone calls and send text messages to the contacts saved on the phone.
A young man in Tirur who borrowed Rs 3,000 through the Small Loan app was handed Rs 2150 after paying the processing fee.
They sent another Rs 2,980 without asking after payment on time. They declined via their WhatsApp number but did not respond.
When they dialled this number, a person from Gujarat answered the phone. He claims to not use WhatsApp. Then, on the 24th, he began calling from multiple numbers, requesting a refund. When told that Rs. 2980 will be repaid, he threatened to pay Rs. 5000.
After answering no, he began sending modified pornographic photographs of the young guy himself via WhatsApp to the young man’s phone numbers. Meanwhile, the youth had returned Rs 3,000 to them. But the threat continued, demanding another Rs 5,000.