You make a better financial plan, but sometimes you need to take a loan. Banks and non-financial companies (NBFCs) give loans after considerable scrutiny. Seeing this as an opportunity, online lending companies (Finetak) are charging you up to 360 percent interest by offering you a loan in just 60 minutes. This easy-looking loan can sometimes become a problem for you.
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Fintech threatens to delay or default in debt payments and in some cases even talks about sending bouncers home. Apart from this, they also threaten to discredit the family and society by adopting other methods. The victims of these fintech are mostly college students or young people. Experts say that these Finetak’s eyes on India’s 45 crore young population who use smartphones easily.
Companies charge fixed amount on loan
If the bank or NBFC gives you a loan, their interest is fixed as a percentage, ie 10% or other fixed percentage. But fintech takes a fixed amount of interest on every loan which is more expensive. A company gives a loan of Rs 15,000 for 15 days and on the 16th day charges Rs 15,125 along with interest. As a percentage, it is 0.5 per cent per day and 180 per cent per annum, which is very high.
No EMI option
Such companies give loans for a very short period of time ranging from 15 days to one month. As soon as salary is received, the entire amount including interest is recovered. It does not have the option of EMI. It gives loans from Rs 500 to Rs 1 lakh.
Girl student threatened to be expelled from college
Amisha Swarnakar, a student from Raipur in Chhattisgarh, would never have dreamed that a loan of a small amount from fintech would become a problem for her parents. Amisha had taken a loan of just three thousand rupees from Bangalore-based company Slice. When the lockdown began, he asked for the benefit of the Moratorium. But as soon as the moratorium was over, Amisha’s parents and friends started getting calls from the fintech company that she was not paying the loan. Amisha says that Slice’s recovery agents even said that if the debt is not repaid immediately, they can get the college out by telling the principal. Mint also had a screen shot of a message sent by Slice’s recovery agent in which he threatened to call Amisha by showing her the mobile of her mother and friend.
Bullying to defame coach
Amisha is not the only one to get caught in the fintech trap. Sandeepan Hazarika, a cricket coach from Assam’s Naogaon, was also threatened by a fintech for defaulting in debt payments. Sandipan had taken two loans of Rs 9500 from Cashmap Fintech in late August and early September. He says that due to the loss of income due to lockdown, it was forced to take loans. Hazarika says that CashMap agents started threatening on the delay in loan repayment and started saying that if you do not pay the loan soon, then you will tell all the contacts of people in your mobile that you are not paying the loan. In the end, Hazarika lodged an FIR in the police station. Mint has a copy of that FIR.
No response from company
Cashmaps and emails sent to RBI by Mint have not been answered yet. While Rajan Bajaj, the founder and CEO of Slice, says that harassing our customers has never been our motive. We will investigate further in this matter.
Do bad reputation on social media
When FinTech gives a loan, it is also linked in the condition of downloading their app that they can check your mobile data in every way. Research Fellow of the Observer Research Foundation K.J. Shashidhar says that from here he captures all the data of the consumer. Through this, he easily acquires the number of friends along with the number of parents and other family members and starts threatening. Praveen Selvan, chairman of Save Them India Foundation, says that once data is captured, fintech social media profiles are also searched. After this, when the consumer delays or defaults in repaying the debt, he calls parents and friends and informs them on social media. While doing so is against the guidelines of the Reserve Bank.
Where to complain
Complain to the nearest police station when a threat comes from FinTech. If there is a special IT cell, then you can complain there too. Apart from this, you can also complain to the Reserve Bank. Experts say to avoid taking loans blindly from fintech. If taking a loan is very important, then read the terms of fintech carefully and do not forget to keep its digital documents with you. Also record the threatening calls coming from fintech which will strengthen your complaint.