Nearly every adult in India has a bank account, but fewer than a quarter of them in the South Asian nation can secure loans from the formal financial institutions.
Although much of the population in the country doesn’t have a credit score, an increasingly growing number of people here are looking for credit — and some are going to extreme lengths.
Hundreds of online lending apps have begun attempting to tackle — and in some cases, abuse — this opportunity in recent years, offering Indians short-term, collateral-free and instant loans.
The catch? Several of these apps charge such high fees that the interest rate, when annualized, could go as high as 1,000%.
Many of these apps, several of which are operated by Chinese firms, have also been found to be employing sketchy tactics, such as contacting family members and colleagues of the customer to shame them and recover their