As AI-based loan apps boom in India, some borrowers miss out - BusinessWorld

As AI-based loan apps boom in…

As AI-based loan apps boom in India, some borrowers miss out - BusinessWorld

BusinessWorld | 2021-06-09 09:34

As the founder of a consumer rights non-profit in India, Karnav Shah is used to seeing sharp practices and disgruntled customers. But even he has been surprised by the sheer volume of complaints against digital lenders in recent years. While most of the grievances are about unauthorized lending platforms misusing borrowers' data or harassing them for missed payments, others relate to high interest rates or loan requests that were rejected without explanation, Mr. Shah said. "These are not like traditional banks, where you can talk to the manager or file a complaint with the head office. There is no transparency, and no one to ask for remedy," said Mr. Shah, founder of JivanamAsteya. "It is hurting young people starting off in their lives -- a loan being rejected can result in a low credit score, which will adversely affect bigger financial events later on," he told the Thomson Reuter…


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