Chinese loan app scam worth hundred of crore hit the booming digital lending environment and reason of many suicides
From our India Editor
its month end and salary is not going to come in another 10 days, but billion day sale is on and the mobile you ever wanted to buy on sale, don’t worry open play store and search for instant loan, voila there are hundred of app offering instant loan from 1000 to 100000, but wait there are apps offering loan without and credit check. lets go ahead and take that loan…. now the story begins
Telangana’s Cyberabad has busted an online instant loan scam run by a Chinese national. The man, identified as Zixia Zhang, has launched 11 instant loan apps from various names. These apps offer short duration loans with hefty charges and interest rates. they were charging upto 40% of principal amount as processing fee/interest/GST.
main customer for these app were lower salary group people/working class and students.
The scam was busted on Friday when the Cyberabad police’s cybercrime cell raided a call centre. The call centre, “Cubevo Technology Private Limited”, is a subsidiary of “Skyline Innovations Technologies India Private Limited” a company set up by Zixia Zhang and an Indian national Umapati in Gururgram, Haryana.
List of Instant Loan Applications:
1) Loan Gram
2) Cash Train
3) Cash Bus
4) AAA Cash
5) Super Cash
6) Mint Cash
7) Happy Cash
8) Loan Card
9) Repay One
10) Money Box
11) Monkey box
How they worked
According to police, Zixia Zhang is the kingpin behind the entire operation. He and Delhi-based Umapati started a company “Digipeergo Tech Pvt Ltd” last year (read 2019). In the next few months, they launched another company by the name of “Skyline Innovations Technologies India Private Limited”.
With the help of a freelance app developer, the company developed 11 Instant loan applications that promises loans to individuals and collect huge repayments once the loan period is over they charge 1 per cent penalty and also resort to systematic abusing, harassing, threatening of the defaulters through call centers run by them. They even blackmail the borrowers by sending fake legal notices to their relatives and family members.