Vijayawada: Beware of micro finance companies: CP Srinivasulu to people

Vijayawada: City Police Commissioner B Srinivasulu appealed to the denizens of Vijayawada not to fall in the trap of micro finance companies and pay heavy price with high interest of rates. He said that micro finance is a vicious circle and once trapped the people cannot come out of it.

Speaking to media at the conference hall in the Commissionerate on Sunday, the CP said the city police noticed that one person in the city had taken loans from 40 instant loan apps. He said many people had been trapped in the vicious circle of micro finance companies. Srinivasulu asked the people to think why micro finance companies lend loans without any security and surety.

He regretted that some micro finance companies charge even 30 percent interest on the loans. He said that the city police have identified 40 apps lending loans online without surety and security. He said innumerable apps are there doing the micro finance business and suggested the people to beware of such companies and avoid taking loans from these companies. The police are trying to find out the instant loan apps and already identified 56 apps so far.