Zerodha's Nithin Kamath warns people of illegal predatory loan apps

livemint.com:

Amid rising cases of harassment by predatory loan applications, Zerodha founder Nithin Kamath warned people of being aware of shady applications. He also reminded people of laws available for their protection in such cases. He also advised people who are victims of such fraud cases to immediately file a complaint at https://cybercrime.gov.in or call 1930.

“There has been a spate of suicides due to harassment by loan agents of shady and illegal predatory loan apps. If you are a victim of harassment, file a complaint at https://cybercrime.gov.in or call 1930. We have laws that protect you from harassment," said Nithin Kamath in a thread of tweets.

“These apps lend at exorbitant rates, as high as 100–200%. They also get access to all contacts and photos when users install the app. If they don't repay, they start harassing all the contacts with calls and lewd pictures that are morphed," he added.

“It is insane to share all that information for a loan. It's also absurd to borrow money at rates of 50-100% per year. It is almost impossible for most people to repay the principal at those rates." He emphasised that a vast majority of these apps are illegal and unregulated applications.