Chinese instant-loan apps have exploded in India. As lockdown hurts salaries, borrowers say they are threatened with violence and fake police reports over repayment, 7 May 2020
Since March 24, India's 1.3 billion citizens have been under lockdown, with more than 100 million people losing their jobs in April alone.
According to statistics, millions of Indians are using instant-loan applications to get by, many of which are controlled by Chinese enterprises that collaborate with local firms to operate in India.
Borrowers claim they will be unable to repay their loans because to the epidemic, and that they are facing scary threats as a result of their obligations. Official-looking — but forged — letters are among the threats, as are bothersome relatives.
CashBean, a popular loan app run by China-owned Opera, told Business Insider that it was investigating or terminating staff who had broken company standards, such as issuing forged letters.
Other companies BI contacted either did not respond or denied any wrongdoing.
Google informed Business Insider that it removes instant-loan apps that operate on egregious terms, despite the fact that scores of these apps may still be found on international Play Stores.
… In India, it is typical to take out last-minute loans from private moneylenders... Adults in India have an average debt of $1,345, according to a research. Borrowers are turning to apps as smartphone usage rises... "In India, 60-70 percent of microlending apps are owned by Chinese companies,"... CashBean is owned by Opera, a tech company that is in turn owned by a Chinese investment business. Moneed, for example, makes its Chinese heritage clear on its website. In its corporate documents, Mad Elephant also names a Chinese director. And India's Economic Times stated that CashBus is considering entering the Indian market...
… Borrowers in India who use these applications say they've been threatened with shame, arrests, credit restrictions, judicial action, or financial penalties if they don't pay their bills on time. … Affected borrowers appear to have limited recourse from the government. There's also a regulatory gap: the Reserve Bank of India doesn't inspect these apps,... It has imposed a lending moratorium, but it looks that Google will be in charge of policing the apps in its store.
Apps with predatory lending terms are presently not allowed on the Google Play Store due to Google's regulations. However, payday apps are still readily available... . According to Google, the Play Store has been aggressively monitoring lending apps and removing any found to be in violation of the guidelines. … A spokeswoman for CashBean stated the company had a "zero-tolerance policy" for infractions committed by its employees. It claimed to have fired one employee for violating the company's code of conduct...
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