AI-based loan apps are booming in India, but some borrowers miss out

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 unauthorised 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, 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 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 Reuters Foundation.