Google takes down 200 lending apps in India.
                     GOOGLE 
TAKES 
DOWN 200 
LENDING 
APPS IN 
INDIA
INTRODUCTION
 A number of fintechs have tolerated  A Google Play app store scan for the 
granting minor loans or so over the past Instant Credits keyword shows over 200 
year, and borrowers have fallen for them applications ready to pay money to the 
because they need fast turnover and bank account.
minimal paperwork. 
Source: www.livemint.com 2
MULTIPLE LOANS
 In the hurry to get easy loans, many  Many started with borrowing small 
overlooked the interest rates, penalties and amounts ( ₹500 to ₹50,000), but as their 
the track record of these lenders. dependency rose, they ended up taking 
multiple loans until their cash flows dried 
up and they started defaulting. 
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RECOVERY
 The phase of recovery has now become a 
nightmare for many borrowers in the app-
driven microlending section. 
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CONTACT INFORMATION
 While installing the app, borrowers must 
give it consent to access their contacts, 
which some aggressive lenders are now 
tapping to publicly humiliate borrowers.
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PUSHY LENDERS
 Kolkata-based Madhushree Chowdhury,  Though she asked for the Reserve Bank of 
whose employer delayed her salary amid India’s moratorium facility, lenders refused 
the lockdown, has personal loans from to do so. 
three fintech apps. 
 Instead, they threatened her with legal 
 The 26-year-old, who works with a travel action. She is now trying to buy time until 
firm, ended up defaulting on all. her salary resumes.
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FOLLOW FAIR PRACTICES
 CashMama and CashBus said their  Any time customers bring any violation to 
recovery and collection agents follow fair the notice, company will terminate the 
practices. agent in question if the allegation is 
supported by evidence such as call 
recordings.
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ISSUES OF CUSTOMER HARASSMENT
 The company is very strict guidelines to  This appears to be an attempt to defame 
ensure that no such issues of customer the company, said a CashBus 
harassment come up. spokesperson. 
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FAKE FIRS
 Borrowers have received fake FIRs (first  The penalties are higher than even that on 
information reports), warning letters from credit cards which makes repayment 
RBI and TransUnion Cibil, recovery agents difficult
have made WhatsApp groups of family 
members and abused people. 
 Lenders are either not giving a moratorium 
or asking borrowers to pay the interest 
portion upfront. 
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CLARIFICATION FROM FINTECH COMPANY
 These are only to discourage borrowers  We are also offering a moratorium 
from defaulting. depending on the financial problems of 
 If they engage with us, we waive off the borrowers.
penalties on a case-to-case basis. 
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WHAT TO DO?
 Beware of smaller entities: There has been  Look before you borrow: While some opt for 
a spurt of lending apps in the past year and lending apps for convenience, others do so 
most of them are small entities. because they don’t meet banks’ lending 
criteria.
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