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