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Loan danger: India's illegal finance apps bring worry, regret

Users tempted by quick cash often face huge interest payments, harassment

Technology makes it easy for borrowers to finance everything from soaring household bills to gambling debts, but leaves them open to unscrupulous lenders. (Source photos by AP and Reuters) 

BENGALURU -- Faizal Khan* thought long and hard before borrowing the equivalent of around $30 for seven days through one of the instant loan apps that have mushroomed in India over the last couple of years. In the end, the lure of the money proved too much and the 23-year-old engineering student persuaded himself it would be fine to go ahead.

He soon regretted that decision. Six days into the loan, he says he received dozens of calls from unknown numbers demanding he repay the money with far more interest than he was expecting.

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