Zerodha CEO drops hot finance app tips, watch out for ‘red flags’

In a tweet, Nithin Kamath, CEO of Zerodha, warned people about the “red flags” of finance apps, particularly loan-related apps. He advised people to be cautious of apps that ask for full access to contacts, messages, and photos. Kamath described these apps as “digital avatars of predatory moneylenders.” He further highlighted that many of these apps deduct upfront fees of up to 10%, and their interest rates can range from 50% to 200%+. Kamath also mentioned that these loan apps can resort to physical threats and harassment to recover money. Lastly, he urged people not to fall for such traps and advised them to be aware of the fine print. The tweet has gained significant attention and has sparked discussions about the need for regulation and collaboration to curb predatory lending practices.