Loan App Scams: RBI Cautions Against Loans Offered by Unauthorised Platforms, Apps, Here's How People Can Avoid Falling Prey to it

Mumbai, December 25: Loan app scams have surfaced lately and a result of which, RBI cautioned people asking them to be careful. Loans are being offered by unauthorised digital platforms, mobile applications promising a quick and hassle-free process.

RBI Cautions People Against Loans Being Offered by Unauthorised Platforms, Apps Promising Quick & Hassle-Free Approach

Several individuals/small businesses have fallen prey to the growing number of unauthorised digital lending platforms, Mobile Apps on promises of getting loans.

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Here's what the scam is:

Loans are being offered by unauthorised digital platforms, mobile applications promising a quick and hassle-free process. Excessive rates of interest and additional hidden charges are being demanded from borrowers. This also follows high-handed recovery methods are being done.

Several unauthorised apps are involved in the scam, to name a few would be-Hey Fish, Monkey cash, Cash Elephant, Loan Zone, Cash Zone, Water Elephant, Mera Loan. Some instant personal loan apps involved were are Cash Mama, Loan zone and Dhana Dhan.

Here's how people can avoid falling prey to such scams:

• Don't share copies of KYC documents with unidentified persons, unverified/unauthorised Apps
• Fraudulent activities can be reported to law enforcement agencies or RBI’s Sachet portal (https://sachet.rbi.org.in)

  It is very important for people to be careful and as fraudsters are always finding ways to dupe people.