How app-based lenders are harassing, sucking borrowers dry

Lending app
Thousands of customers have fallen prey to lending apps which are misusing data, overcharging customers and taking advantage of the digital illiteracy. | Image - Eunice Dhivya

Sunil Kumar, a migrant worker from Uttar Pradesh’s Aligarh, works as a painter in New Delhi and earns around ₹400 a day. But that is only on days when he gets work.

About nine months ago, Kumar fell short of ₹2,000 required for his brother’s treatment. Banks wouldn’t lend to him since he didn’t have a regular job. So he took a loan from WifiCash, an app-based platform run by Delhi-based non-banking financial company (NBFC) Chadha Finance Ltd.

All he had to do was submit a photo ID, his Aadhaar number and take a selfie to authenticate it’s him who’s seeking the loan from his registered mobile ID. WifiCash gave him a loan within two hours of filling an application.

https://soundcloud.com/social-media-the-federal/why-borrowing-from-app-based-lenders-is-fraught-with-danger

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