Nithin Kamath shares plight of loan shark victim, cautions against illegal finance apps. What are they?
Nithin Kamath recently shared some red flags to identify fake and shady loan applications that trap people with lucrative schemes and offers and then threaten them for repayment of loans on higher interest. In his social media post, Kamath warned his followers to be aware and alert of “shady, illegal" digital lending applications. He also mentioned some ways to identify such fraud applications.
In his next post, he shared screenshots of his conversation with a victim of such a fraud loan application, who ended up paying nearly 50% extra amount of his debt to the loan application. Also Read: Zerodha's focus in 2023 was backend systems, R&D; alert triggers basket & more in pipeline: Nithin Kamath In his post, the bootstrapped entrepreneur shared the threats of easily trusting any random loan application without even verifying it. He also warned people not to give access to such applications to contacts, messages, photos, etc, on personal devices.
Mentioning the exorbitant interest rates charged by such loan applications, Nithin Kamath wrote, “What makes these apps disgusting is the fact that many of them deduct as much as 10% upfront. Then there's the fact that interest rates range from 50% to 100%, or even 200%+. It's impossible for people who borrow on these apps to repay with such usurious terms.
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