top of page

Multi-city Crackdown on Illegal Instant Loan Apps, 17 Arrested

Police raids in Hyderabad and Gurugram resulted in the arrest of 17 people as part of a multi-city crackdown on unlawful fast personal loan apps.


This comes after three people committed suicide last week as a result of harassment by workers of online loan apps. Among those who died were a computer programmer and a female government employee.



According to NDTV, the Hyderabad Police Department has frozen 75 bank accounts totaling Rs 423 crore in connection with a multi-billion dollar money lending scandal. Victims were allegedly charged up to 35 percent interest by these money lenders.


According to the Telangana DGP's office, at least 60 such lending applications available on Google Play Store are neither registered or recognised as NBFCs by the Reserve Bank of India, making their operation unlawful.


Nearly 700 computers, servers, and computer systems, among other items, were seized by police. According to IANS, more research into the trail of financial transactions, funding, and technical base is underway.


Meanwhile, the Cyberabad police are conducting independent investigations and have detained seven people, including Sarath Chandra, a 32-year-old engineer with a degree from the United States, according to NDTV. Chandra is said to have conducted money lending activities through two firms, Onion Credit Pvt Ltd and Cred Fox Technologies, both of which he founded in 2018-19.


The two companies had 110 staff in two offices and had signed agreements with nine NBFCs. Both companies are said to have 1.5 lakh customers, with roughly 70,000 of them being active.


On December 23, the RBI released a statement warning individuals and small companies to be wary of the growing number of unlicensed digital lending platforms and mobile apps.


Conclusion


There's no need to be discouraged if your personal loan application is turned down. To boost your chances of loan approval, simply work on improving your credit report and following the methods outlined above. Once you've completed this checklist, you're ready to submit your personal loan application.To find about the best pricing and deals, call our toll-free number +91-9477079053. They'll help you in every way they can. Please contact me at Instant Loan if you have any more.

6 views0 comments
bottom of page