In the cash-strapped country, the trend of instant loans is on a steep growth trajectory, and people continue to fall for such sham platforms to get financial help without going through a regular procedure that requires a lot of paperwork and comes with stringent conditions.
Unemployment, declining finances, and record inflation have compelled a number of people to download these instant loan apps in order to make ends meet without difficulty.
As these instant cash apps run paid campaigns to attract their target audience, a large number of people have fallen victim to the latest financial fraud.
Reports in local media quoting numbers from Punjab Home Department claim that more than 9 million cell phone users have downloaded these applications and many of the citizens are being scammed and even threatened by these private lenders.
At first, these platforms lured people with easy return policies and once they borrowed the amount, the recovery agents started pressurizing them to return the borrowed money within a week’s time. As already distressed people failed to return the full amount in days, they are forced to repay the loan with a hefty markup.
Barwaqt Loan, PK Loan, Easy Loan, Zeta Loan, Asan Qarz, Udhar Paisa, Credit Cat, Fast Loan, Easy Money, and B Cash applications are among the fishy applications.
Previously, it was reported that the Securities and Exchange Commission of Pakistan had begun action against companies offering quick loans through deception. The case against 14 illegal apps was also sent to Federal Investigators by SECP.
