Highlights:
- 75+ Fraud Loan Apps Reported by SECP
- Victims Suffer Extortion, Abuse, Sky High-Interest Rates
- Authorities Warn the public against such loan sharks
According to the SECP (Security and Exchange Commission of Pakistan), 75 online lending applications were detected as scams.
Asaan Qarza is among the list of apps that SECP hopes to crack down on.
Until now, the SECP has received 1,415 complaints against licensed digital lenders and 181 against unlicensed ones, indicating that loan apps, in general, are doubtful and should be handled with extreme caution.
Sky-High Interest Rates
A recent case of an unemployed Pakistani software engineer has surfaced where a loan of Rs. 15,000 turned into a huge cost of Rs. 230,000.
Due to strict bank policies, people find loan apps convenient, but that comes at a high price no one can imagine paying.
Extortion Money
Another Lahore resident received an amount of 10,000 rupees from a loan app that she didn’t apply for. Even after returning the amount, she was harassed, and her contacts were called and harassed as well.
She ended up paying 40k, and even then, the abuse didn’t stop, which she later reported.
Strict Action Against Loan Apps.
Google has restricted personal loan apps from accessing user contacts or photos. Still, according to digital rights activists, even tougher rules are needed to save thousands of people and their money from being misused.
SECP Registered Apps
SECP has stated that the below apps are registered with the commission and are thus safe to use but still don’t take any responsibility if an issue occurs (according to sources).
That means you are better off resorting to a bank for a loan rather than getting scammed by these apps with no regulations and spokesperson to complain to.
SECP-registered apps include:
- Finja
- Muawin
- Credit Per
- Easy PK Loan
- Zoodpay & ZoodMall
- Qisstpay CreditCat RazCash
- Abhi
- Barwaqt
- Udhar-Paisa
- Zaroorat Cash
Musarat Jabeen, the chief spokesperson of the SECP, told Geo that apart from registered apps, the public has been strictly advised not to trust any other fraud loan apps.
Stay Safe, and Avoid Loan Apps!
So that was our take on fake loan apps that people must be mindful of. Check out our detailed guide on Loan Apps in Pakistan on the Blogpakistan site.
