Superintendent of Police M. Deepika urged students not to download dubious loan apps since they would land them in financial troubles and other problems even if they made repayments promptly. She advised parents to guide youngsters not to use such loan apps since the fraudsters were making phone calls to friends, relatives and other contacts by gaining access to contact numbers while issuing loans.
The Police department was receiving many complaints through Grievance Cells on the harassment by persons claiming to be representatives of those loan apps. “The RBI-approved Non-Banking Financial Companies are allowed to provide loans through such apps. All others are doing the loan business illegally. Before applying for loans, people should check the RBI website to know details of the respective companies,” Ms. Deepika told The Hindu.
“Mainly, college students are falling prey. They take meagre loans up to Rs.5,000 for some pressing needs. However, they are forced to repay huge amounts in the form of penalties and interests. We are planning to conduct awareness programmes in colleges across the district to save them from exploitation,” she added.
