PMK founder S. Ramadoss on Friday demanded a ban on online mobile apps that provide easy loans at high rates to young people.
In a statement, he said these loan companies are reaching out to young people and granting them loans, without any documentation, through mobile phone apps. “They take the names, numbers and addresses of all their relatives, colleagues and friends. Loans in the amount of 5,000 to 50,000 are given without any collateral or document. However, 1,500 are deducted from a small loan of 5,000, ”he said.
Dr Ramadoss said that a young man from Adambakkam, Chennai, had been subjected to immense pressure and humiliation from these companies because he was unable to repay his loans. “He then committed suicide. Another youth had taken out loans from another business to repay his loans and at one point, unable to cope with the stress, he committed suicide. Yet another youngster has accumulated thousands of rupees in debt. And the company representative contacted the company where he worked, which led to his dismissal. Now he has no job and no way to repay his loans, ”he said.
While usurious loans are prohibited in India and it is illegal to post photographs of those who are unable to repay the loans, these online loan providers charge up to 30% interest and defame the borrowers. “It is reprehensible that no action is taken against them. Online loan sharking should be banned. Otherwise, the number of people committing suicide will only increase, ”he said.