Several states across the country have reported suicides among those who had failed to repay loans availed digitally through a mobile application. The deaths reported were allegedly due to harsh loan recovery methods employed by these platforms. In many cases, instant loan apps indulge in online harassment in the form of threatening calls and messages to the person’s friends and family. These apps are involved in data breaching and using our own data to threaten us. The app gains full access to your phone when installed. These apps are involved in data breaching and using our own data to threaten. These apps often exploit the defaulters' legal and digital illiteracy. The defaulters are led to other digital lending apps by these apps. Their self-respect is destroyed by these online lending apps. Some are Chinese apps and are illegal, not even run by companies. Even the lower rung police officers don't look at how the harassment is being enabled through a data breach. Not all digital money lenders on Google Play Store are NBFCs that have ties to banks that are regulated by the RBI. Reports say that there are over 60 apps on the Play Store alone. The Central government and the RBI should pay more attention to the rising instances of suicide among digital loan defaulters.
