Debt trap: Inside the world of shady digital lending apps, which promise a loan in a minute

According to fintech industry sources, several lenders simply register an entity under the Companies Act, develop an app and start commercial lending. They peddle 7-30-day loans at high-interest rates — often 200-500% annualised. Most of these apps, recent investigations by NGOs and advocacy groups like Cashless Consumer reveal, are Chinese white-labelled apps with Indian names. The apps are mostly hosted on Chinese servers.

from Banking/Finance-Industry-Economic Times https://ift.tt/3stLXVP