Online loan apps swindling people out of money

An enormous number of people are falling prey to financial frauds through digital loan applications, reported 24NewsHD TV channel on Tuesday.

According to a report of Punjab Home Department, as many as 9.5 million cell phone users have downloaded these applications. Of them, hundreds of thousands of people have become a victim of the financial fraud.

The citizens are being swindled out of money on the pretext of easy loans. Those, who have obtained loans through these applications, are harassed, threatened and blackmailed.

These digital loan applications are operated from private call centers in Lahore, Karachi, Rawalpindi, Faisalabad and Islamabad.

Citizens are first promised to return the money they borrowed within 60 days, but they are later pressurised to return the borrowed money within seven days.

Also, they are first promised to repay the loan with five per cent markup, but they are later forced to repay the loan with 40 per cent markup.

Barwaqt Loan, PK Loan, Easy Loan, Zeta Loan, and Asan Qarz are among the fraudulent loan applications.

Udhar Paisa, Credit Cat, Fast Loan, Easy Money, and B Cash applications are also among the fraudulent loan applications.

The Interior Ministry has recommended mandatory registration of loan applications from financial institutions including the State Bank and the Security and Exchange Commission of Pakistan (SECP).

Reporter: Saud Butt