Digital Lending Crisis in South Asia
Millions borrowed. Thousands trapped. A continent in debt to an app. By M. Selfd | The Express Tribune Published: 2023 | Investigation Desk | Finance & Technology KEY FINDINGS ▪ Loan apps in Pakistan have accumulated at least 27.4 million installs, many operated by unlicensed or foreign entities. ▪ Interest rates on some apps reached 1,800% per annum, with borrowers taking fresh loans to repay old ones. ▪ In India, up to 60 people have died by suicide linked to harassment by digital lending recovery agents. ▪ Regulators in Pakistan, India, and Bangladesh have responded unevenly, leaving millions of vulnerable borrowers exposed. ▪ Google removed over 84 illegal lending apps from its Play Store in Pakistan in 2023 alone. Mohammed Masood, 42, borrowed money from two mobile apps. He was unemployed, living in Rawalpindi, and needed cash...