Restrain Chinese lending apps, Centre tells states

New Delhi, October 30

The Centre in a communication to all states and UTs has directed them to take urgent and strict action against predatory lending apps as harassment, blackmail and harsh recovery practices by such Chinese-controlled entities have led to multiple incidents of suicides, sources said.

In the communication, the Union Ministry of Home Affairs (MHA) has said the issue had caused a serious impact on national security, economy and the safety of citizens.

The sources said the MHA had sensitised the states/UTs, saying a large number of complaints had been reported across the country related to illegal digital lending apps providing short-term loans or micro-credits at exorbitant interest rates with processing or hidden charges, especially to vulnerable and low-income group people. The lenders were using borrowers’ confidential personal data like contacts, location, photos and videos for blackmail and harassment, it noted.

The sources said the MHA had advised states to take help of domain experts for investigating such cases.