Loans Apps India

The rise of loan apps in India has brought both convenience and risk for
individuals looking for credit, particularly for subprime borrowers who may be
more prone to download any app that offers them a loan without verifying the
company's legitimacy. This makes them more susceptible to fraud and
predatory lending practices. The need for regulation in this area is imperative
to protect these vulnerable consumers and preserve the integrity of the
financial system. Proper regulation should include mandatory disclosure of
interest rates and fees, limits on hidden charges and automatic renewals, and
stricter data security requirements. Additionally, effective oversight and
enforcement of these regulations is necessary to ensure compliance and
prevent fraud. Without proper regulation, loan apps can lead to financial harm
for consumers, and it's crucial for regulators to act swiftly to address these
issues and ensure the safety and security of the financial system for all.

Ref. 1: https://www.newslaundry.com/2022/09/24/the-death-trap-thats-
indias-illegal-loan-apps

Ref. 2: https://www.dailypioneer.com/2022/columnists/app-loan-fraud--a-
new-challenge-in-digital-world.html

Ref. 3: https://theprint.in/india/please-act-telangana-govt-urges-rbi-as-
loan-app-agents-harass-blackmail-borrowers/1037422/

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