Hundreds of online lending applications that appeared during the Covid-19 epidemic such as Paytm and Ola, have significant sources of money from China, worth about $ 4 billion, including companies like Tencent and Ant Financial. Alibaba group. Most of these loan applications are located in China.
In India, many people in small towns and rural areas cannot access banking services, so they are forced to borrow money from “usury” individuals with interest rates up to 300% per year. Many other residents turn to borrowing at loan applications with promises of quick and easy loan processing, but they do not know they will fall into the Chinese debt trap.
A few days later, she discovered 26,000 rupees had been transferred to her bank accounts from 14 different loan applications that she had never downloaded to her phone. Debt collectors from all of these apps rushed to send her notices asking her to pay the full principal and interest of up to 44,000 rupees – more than 10 times the amount she originally borrowed.
When the girl was unable to pay off the loan, the Indian debt collectors representing the Chinese creditors repeatedly called to terrorize her. They also stitched pictures of her face on her nude body to create erotic images to intimidate the victim.
In the past, the Chinese media have reported that girls in China have to take nude pictures of themselves as collateral for loan applications or even be forced to sell sex if they do not pay off their debts.