Chinese loan apps misuse KYC details of Indians to set up fake bank accounts

Shonali*, a 48-year-old lecturer from West Bengal was laid off from a private university in March 2020. The lecturer, facing financial stress, turned to Chinese-owned instant loan applications that provide microloans without collateral, but at high-interest rates. Shonali started using these apps to meet expenses in September but began defaulting by October 2020. These digital lending apps which provide micro-loans of as little as Rs 1,000 have a shorter repayment period and a much higher interest rate.