70% apply for loans from apps despite high interest rates: survey

NEW DELHI: Nearly 43% of respondents in a survey said they had received calls from marketers on the phone asking them to apply for a loan through an app, and 70% knew that these apps attracted interest rates. interest and opted for the loan anyway, according to a survey by Way2News, India’s largest vernacular news app.

Just over half of respondents said they or a family member or friends had received such a loan, and 67% of respondents had been harassed or knew friends and family. who suffered at the hands of loan sharks but 79% of respondents did not know where to complain.

“We conducted a survey on loan apps in Andhra Pradesh and Telangana which 2,000 people responded to. We saw many complaints about loan apps so we decided to investigate to understand the number of people affected. The results are alarming,” says Venkat Aditya Gunturu, Chief Content Officer, Way2News.

In Andhra Pradesh and Telangana, this survey was conducted among users of the Way2News app. At least 200,000 people from both states participated in the survey. 65% of men and 35% of women shared their answers, with a majority (44%) in the 21-30 age group. The majority of respondents were from Mahbubnagar (3171), followed by East Godavari (3047) and Nalgonda (2954).

The Way2News team asked several questions about the loan apps to understand the perception of the people in the state towards these microcredit loan apps.

The apps attract users by providing loans quickly and easily with high interest rates and processing fees. When someone defaults, recovery strategies include contacting and texting others on the borrower’s contact list, morphing images, and more.

According to the police, the fraudsters hacked into app users’ phones and took their data, including banking information, emails and pictures. They then start tormenting the user by sending their friends, colleagues and family the user’s altered photos.

Hyderabad Police have issued red corner notices against a few Chinese citizens for their links to these illicit online lending app operations. Google India has removed many such lending apps from its Play Store. The Reserve Bank of India (RBI) has also set up a task force to investigate the operations of regulated and unregulated companies in the area of ​​digital lending.

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