Chennai police warn people against new loan app

Chennai city police on Friday have warned people to be cautious before downloading and borrowing money through loan apps.

Despite getting many such apps deleted from the app e-stores, of late the police have noticed several loan apps again mushrooming in the play store in different names. In a release issued on Friday, the city police cautioned the people that these ‘loan apps’ would collect the personal details accessing their contacts and store them in their database.

If anyone gets a loan of Rs 5,000, they will receive Rs 3,500, while the remaining Rs 1,500 will be deducted as processing fees. Those who availed the loan will be allowed to repay within seven days. If they delay, every day they will have to pay Rs 200 to Rs 500 exorbitant interest and they would receive threatening messages from the 10th day onwards, police warned.

City Commissioner of Police Shankar Jiwal advised the Chennaiites to avoid taking loans through these apps.