New Delhi: Although hundreds of lending apps have recently been banned or removed, fraudulent loan applications targeting middle-class and financially unsavory Indians are on the rise again. A similar case came to light in February this year, when a woman claimed to have been abused and threatened by unknown individuals who sent her altered and vulgar photos to her family, friends and relatives via social media. She contacted the IFSO unit of the special cell and made a complaint. The complainant recounted her ordeal and said she took out a loan from a lending app, Cash Advance, which she repaid on time. However, after the loan was repaid, she received threatening phone calls and messages on WhatsApp from Cash Advance staff.Also Read – Bank Fraud and Scams: How to Protect Yourself from Online Banking Fraud – Watch Video
Indians fall victim to cyber scams
Lately gullible Indian people are falling victim to the small amount of credit they receive through these China-powered fake credit apps available on Play Store every day. People are scammed in hundreds of millions of rupees every day.
A similar case came to Delhi Police Crime Department where a man claimed that he and his family, friends and relatives were abused by some unknown people through some international and national WhatsApp mobile numbers and also threatened to repay the loan taken the same “ Cash Advance” application.
In another case, when police were investigating a cyber scam of just 6500 rupees, they were shocked to learn that the bank account where the scammed amount was deposited had a daily transaction of 19.43 crore.
How do cyber scammers work?
Speaking to IANS, a senior Delhi police official claimed that several fraud cases ultimately linked to Chinese cyber gangs had come to light over the past six months. These Chinese high-tech cyber criminals have come up with a new strategy to deceive people and are now scamming Indians through fake loan applications. “These give instant money to anyone who downloads these applications for a period of a few days. At the time of downloading the application, the app asks for permission to collect the contact list, photo gallery and other personal data of the loan seeker’s phone,” IANS quoted the police officer as saying.
- After taking out a loan, part of the total amount is deducted as a processing fee
- If the balance is not paid within the specified period, the combined interest and penalties amount to 200 percent of the loan amount.
- If the money is not paid, the call centers operating from neighboring countries like Nepal threaten the victims to reveal their personal information and make abusive comments about their contacts since all contacts, photos and other data are accessed while downloading the application on mobile phone the victim.
- Since the money cannot be directly transferred to international or Chinese bank accounts, scammers require Indian bank accounts in order to accept payments.
- Here the Chinese scammers find vulnerable, poor and greedy people of the country to help them get the Indian bank accounts.
Unregistered Digital Rental Apps vs. Registered Rental Apps
Earlier last month, Reserve Bank Governor Shaktikanta Das had said that customers borrowing money through unregistered digital lending apps should contact local police in the event of a problem, clarifying that the central bank would only take action against at their registered company will proceed. That said that most of the digital lending apps are not registered with the central bank and are self-operated.
The RBI website has a list of apps registered on the site, the governor said, adding that police in many states have been cracking down on the wrongdoers as required by law.
RBI Registered Loan App List
|app name||credit limit|
|credit bee||Loans up to 2 lakhs|
|credit cyl||Loans up to 2 lakhs|
|Paysense||Loans up to 5 lakhs|
|NAVI||Loans up to 5 lakhs|
|Lazypay (line of credit + personal loan)||Loans up to 1 lakhs|
|Freopay (credit line)||Rs.10000|
|Stashfin – (line of credit + personal loan)||Loans up to 5 lakhs|
|cash bean||Loans up to 1 lakhs|
|MI credit||Over 5 lakhs|
|Dhani (line of credit)||Loans up to 5 lakhs|
|use finance||Loans up to Rs. 50000|
|NIRA||Loans up to 2 lakhs|
|branch||Loans up to Rs.50,000|
|smartcoin||Loans up to 2 lakhs|
|Rupee App (Gold Loans)||Loans up to 50 lakhs|
|Just pay later (credit line)||Loans up to 1 lakhs|
|Mobikwik (line of credit + consumer loan)||Loans up to 2 lakhs|
|Paytm Personal Loan||Loans up to 2 lakhs|
|Krazybee (Consumer Loan)||Loans up to 2 lakhs|
|Bharatpe (Business Loan)||Loans up to 5 lakhs|
|Paytm Postpaid (credit line)||Loans up to 1 lakhs|
|true caller||Loans up to 5 lakhs|
|Just cash||Loans up to 2 lakhs|
|Slice (line of credit)||Loans up to 1 lakhs|
|true balance||Up to Rs. 50,000|
|Zest Money (Consumer Loan)||Over 2 lakhs|
|Amazon pays later||Up to Rs. 60,000|
|Pay Flipkart later||Up to Rs. 60,000|
|Tata Capital||Over 10 lakhs|
|Tata new credit card (Qik EMI Card)||Rs.10000 to Rs.150000|
|Tata New App (Qik Personal Loan)||Rs.10000 to Rs.10,00,000|
|Pay money later||Rs.1500 to Rs.20000|
|Khatabook app||Rs.50,000 to Rs.10,00,000|
|Jupiter Credit Limit||Up to Rs. 50,000|
|OneCard app||Rs. 10,000 to 150,000 rupees|
|Paisabazaar Credit Limit||Rs. 50,000 to Rs. 10,00,000|
|Pay for your mobile later||Rs. 20,000|
|SBI YONO APP||Rs. 1500 to Rs. 60000|
|IDFC Bank Pay later||Rs. 1500 to Rs. 60000|
|Bajaj Finserv app||Rs. 50,000 to Rs. 5,00,000|
|Rufilo credit app||Rs. 5000 to Rs. 25,000|
|IBL FINANCE app||Rs. 5000 to Rs. 25,000|
|early salary||Rs. 8,000 to Rs. 500,000|
|money view||Rs. 10,000 to Rs. 5,00,000|
|CASH||Rs. 1,000 to Rs. 3,00,000|
|mbag||Rs.500 to Rs.30,000|
|Stashfin – Line of Credit & Loan||Rs. 1,000 to Rs. 5,00,000|
|MoneyTap||Rs.1,000 to Rs.60,000|
|FairMoney credit app||Loans up to 2 lakhs|
|CreditOne||Rs.5000 to Rs.25,000|
|FlexSalary instant loan app||Rs.5000 to Rs.25,000|
|DigiMoney||Rs. 5000 to Rs. 25,000|
|Mystro Loans & Neo Banking app||Rs.50,000|
|Kissht: Immediate line of credit||Rs. 10,000 to Rs. 1,00,000|
How to protect yourself from fake loan apps
- Never download the app from the lender’s website and only download it from the app store.
- Most of the illegal Chinese loan apps don’t even list their website. If a company doesn’t have a website, don’t download the app.
- If the website is listed, visit the website and make sure the company that owns the app is a legitimate lender that is registered with the RBI or works with a bank or NBFC that is registered with the RBI .
- All legal lending companies are required to clearly display this along with their Company Identification Number (CIN) and Certificate of Registration (CoR) details with the RBI.