Online loan apps: Here's how citizens are 'blackmailed'

Due to the crunch economic situation, many citizens are applying for instant loans from online loan apps available on Google Play Store and social media platforms, but they are trapping borrowers. 

There are many apps available on social media that offer small loans to people online, which is actually a modern way to loot the public. They have hidden fees and conditions which are unacceptable to poor ones who apply for these online loans to meet their urgent needs.

These apps are frequently advertised on social media platforms, claiming to provide instant loans to the masses and when one applies for the loan, their ‘blackmailing’ begins.

A few victims of such online loan apps scam while talking to ARY News’ programme Sar-e-Aam, share their painful stories.

A citizen of Peshawar, Wasim Khan, said that he had borrowed Rs50,000 loans from the “Barwaqt Loan” app on April 18, 2021, but they transferred only Rs2,800 to his account.

Wasim said during last year, he paid Rs340,000  and now the management of “Barwaqt Loan” is demanding more money from him۔

Online loan apps are giving loans for 90 days but they start demanding the return of the money from the people within a week and pressurize them by making calls to their loved ones and leak of family photos and records.

Renowed magician named Nomi, who has been raising his voice about the scam on social media said: “I have complained to all institutions, but no action is taken against them.”

There are roughly 25 million people trapped in the online loan apps scam, he said by seeing the download rate of the apps.

The affected citizens have appealed to the authorities to take prompt action and get them free from the clutches of these online loan app scams.

Here’s the video of full programme.