personal-finance
Is your online lender a fraudster?
Jan 20, 03:01

The existence of unscrupulous fintech lenders which are unauthorised, charge excessive processing fees, do not reveal terms and conditions, and follow aggressive collection practices emerges as one of the top risks in the digital lending industry. These lenders harm consumers and undermine trust in digital lending.

The COVID-19 pandemic saw a growth spurt in digital lending apps that promise access to quick cash. Unfortunately, many of these were not legal. The RBI working group on digital lending found almost 1,100 lending apps available to Indian android users, of which nearly 600 were illegal. Since December 2020, there has been a significant rise in complaints against unauthorised lending apps.

Caution you must take