Mangaluru City Police Commissioner N Shashi Kumar on Wednesday warned people against falling prey to unauthorised loan apps.
The warning came after a 26-year-old had committed suicide in Mangaluru recently following harassment from an online loan provider.
Stating that the loan app was started in China initially, the Commissioner said that there are over 600 loan apps in India. None of the apps have any recognition from the Reserve Bank of India (RBI). These apps can be downloaded through Playstore on the phone.
While installing the apps on the phone, permission to access contact details, video, photo, camera galleries are sought, he said. Only after giving the access, loans ranging from Rs 3,000 to Rs 5,000 are granted. During repayment, these apps seek 30 per cent to 60 per cent interest from benefeciaries, the CP added. In case of failing to repay the loan, the borrower is harassed and threatened.
By getting access to personal photos, the loan providers issue threats of posting the personal photos on social media. They even send copies of fake cheating cases booked to threaten the borrowers, said the Commissioner.
The Commissioner has advised people against downloading loan apps and giving permission for accessing mobile contacts, videos, photos.
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