Mangaluru City Police Commissioner N Shashi Kumar on Wednesday warned people against falling prey to unauthorised loan apps.
The warning came after a 26-year-old had committed suicide in Mangaluru recently following harassment from an online loan provider.
Shashi Kumar has appealed to the people not to fall prey to the vicious circle of loans by installing a loan app, for availing of instant loans without any collateral security.
Stating that the loan app was started in China initially, the commissioner said that there are over 600 loan applications in India. None of the apps have any recognition from the Reserve Bank of India (RBI).
These apps can be downloaded through Playstore on the mobile phone. The apps collect a few permissions while installing it on the phone, he said.
He added that permission to access contact details, video, photo and camera galleries are sought while installing the app. Only after giving access, loans of Rs 3,000 to Rs 5,000 are granted. While repaying the loan, 30 to 60% of the interest is charged. In case of failing to repay the loan, the borrower is harassed and threatened.
By getting access to personal photos, they even issue threats of posting personal photos on social media. They even send copies of fake cheating cases booked to threaten the borrowers, said the commissioner.
He advised the people against downloading the loan apps and not to give permission for accessing mobile contacts, videos, photos etc and to be very careful while using apps.