The concern isn't related to just one app though. If you search on playstore, there are thousands of "instant loan" apps and many of them are based on India as well. These loan providers doesn't give loan for many months, they give for tenures like 7 days or 15 days with very very high rate of interest. I have had experience with one such app, and if you are late for repaying by even one single day, they will start to call your contacts and threaten them even. It's high-time that government should do something about these apps and their owners. These app owners and their collection team should be immediately jailed without any parole for atleast 10 years. Their harrasment has lead to suicide of many victims.
There are a lot of laws around this. You can't even open a loan providing company or what we call a Non-Banking Financial Company in India without the approval of RBI. There are penalties if you open one without permission. Once you get registration you are regularly administered and can be sued if you do anything wrong. So I think every borrower should keep this caveat in their minds whenever they seek money to only take loans from apps or websites which are registered with RBI generally the companies would show this as a bold Banner because RBI mandates them to do so I think it's the borrower who should stay aware about all such things.
I disagree, it's not the borrower's fault at all for failing to check if a company is registered or not, it's the RBI and the government should check if there are any institutions or company which are doing illegal business by providing short term loans and collecting heavy interest and also insulting and threatening the victims. Government should order playstore to ban such apps, because there are many people who might need money urgently and they aren't really educated enough and they get trapped into such apps, should we blame them? It's the government who should prevent such apps and companies from doing their business in our country.
