Sometimes, when people need money in our country, they ask their friends for help or some of them also visit the bank. But if they can’t get help from anywhere, they might end up choosing an easy but risky option. Many circulating loan apps in India found as a solution on their phones. Turning to the convenience of loan apps on their smartphones seemed like a beacon of hope in their darkest hour.
However, little did they realize the perilous journey that awaited them, where the seemingly innocent solution could unravel into a web of devastating consequences, putting not just their financial stability, but their very lives, at risk.
The Government of India noticed that many people were losing money and even their lives because of these loan apps. Finance Minister Nirmala Sitharaman and other important authorities had a meeting to talk about this. They wanted to stop the bad things happening because of loan apps.
In the meeting, Sitharaman asked the Reserve Bank of India (RBI), to be very strict with these loan apps. They wanted to make sure that no more people got hurt because of them.
They found out that some of these loan apps were not real. They were tricking people and stealing their money. The government even found out that Google had to remove 2,200 of these fake loan apps from its app store in just one year!
There was a sad story about a family in Bhopal. They thought they could solve their money problems with a loan app, but it only made things worse. The married couple got so worried about the money they owed that they decided to end their lives and the lives of their children. It was a very sad story, and it made everyone realize how dangerous these loan apps could be.
But the government didn’t just talk about it. They made new rules to protect people. From January 1, 2024, if someone can’t pay back their loan on time, they won’t have to pay extra money as a punishment. These rules will help everyone who borrows money, no matter which bank they use.
Hence, the government is diligently striving to ensure the safety of loan apps in India for all users. They aim to prevent undesirable occurrences and ensure that individuals can avail of loans without encountering any harm or risks.
