Posted: Date Posted – 12:08 AM, Sun – Aug 7, 22
Hyderabad: As Nepalese police finally crack down on instant loan app companies operating from their ground, Hyderabad city police are now hoping to get to the masterminds of the illegal business.
The municipal police, during recent investigations into the loan application cases, discovered that the leaders had taken refuge in Nepal following a nationwide crackdown on illegal loan applications. The company was reportedly run by Chinese companies and nationals and is now operated from Nepal and Thailand.
“We have learned of the raids on call centers of illegal loan applications in Nepal and the recovery of large data from Indian citizens. We will get in touch with the Nepalese police through the appropriate channel, although previous attempts have not been so successful,” a senior police official said.
During the raids, Nepalese police found data on several Indian citizens believed to have been victimized by loan collectors through digital shaming. The managements were hiring Nepalese nationals, Chinese nationals and a few Indians to make calls and attract customers. Later, another group of people would call defaulting debtors and engage in abuse or social shaming to collect loans.
90% business from Nepal, Thailand.
“Nearly ninety percent of instant loan app activity is from Nepal and Thailand. Full-fledged call centers were set up there after Indian police launched a crackdown and reserved business,” another city police official said.
Instant loan app companies create apps and randomly text or whatsapp links to people. Once the users download the app, they are prompted to download the app and the money is credited to the account after a little documentation process. The interest is high and when the borrower does not repay the loan, the rulers start abusing and shaming the society. Several people have committed suicide because of this harassment.
The Telangana State Police has so far registered around 100 cases across the state against loan applications.