3. The Rise of Loan App Fraud
Digital lending in India has witnessed an explosion over the past five years or so. According to a report issued by Reserve Bank of India
(RBI) in 2021, there had been a twelvefold increase between 2017 to 2020, and the Covid-19 pandemic has only served to accelerate it
further. The main reason that lending apps have seen such popularity in the country is that a huge majority of Indians don’t have
access to formal sources of financing.
• Traditional lenders like banks are resistant to lending without collateral or lack of credit history.
• Alternatives like loan apps that promise lucrative financing options with emergency financial aid with no documentation required.
According to the RBI report more than 1,100 digital lending apps are available in India
Close to half of the digital lending apps available were illegal.
4.
5. How fraud loan application works
1.Person in need of money will
install the app
3.Obtains loan without being
aprised of the interest rates or
hidden charges
2.Give the ID proof details and fill
the personal details
4.While installing
app,grants access to
contacts,media,social
media accounts etc
5.Finally becomes a
victims of bullying and
harassment by data
misuse the moment the
repay deadline is over
