Hyderabad Borrower Ends Life After Harassment by Loan App Recovery Agents

Hyderabad: A young man in Hyderabad committed suicide after being harassed by the operators of online loan services. Rajkumar killed himself on Monday at his home in Jiyaguda, within the Kulsumpura police station's jurisdiction, unable to handle the harassment from the app operators, according to the police.

Rajkumar, a private employee, took out a Rs 12,000 loan from an online loan app and paid back Rs 4,000 in EMIs, according to his family. The youngster had provided contact information for friends as a reference while applying for the loan. The app's organisers sent messages to his friends when he failed to reimburse the remaining amount.

Rajkumar, humiliated, committed suicide by hanging himself from a ceiling fan when no one was home. The police have filed a case and begun an investigation after receiving a complaint from his mother.

Also Read: Husband's Drunk Friends Gangrape Vizag Woman

The latest incident occurred as the police in Greater Hyderabad have recently increased their crackdown on online loan apps in response to new reports of harassment.

Six people committed suicide in Telangana last year after being harassed by agents recruited by rapid loan apps.

The police commissionerates of Hyderabad, Cyberabad, and Rachakonda, which include Hyderabad and its environs, have reported 50 incidences of harassment. Some of the apps were discovered to be related to Chinese nationals.

Even after the clients had settled their debts, the agents frequently wanted more money. Messages made to references provided by clients while taking out loans, as well as threats, contributed to the suicides, according to the police.

A fraud case involving a loan app run by a Chinese national in Bengaluru was uncovered by the Hyderabad police last month. Two Karnataka residents were detained for operating a contact centre and selling loans through six loan applications under the supervision of a Chinese national.

In February, loan app recovery employees falsely labelled a guy as a rapist to force him to repay the loan.

According to the police, the agents sent communications to the customers' family and friends to name and embarrass them in the majority of the cases investigated.