Chinese university students are using their own nude photos as collateral to borrow money from loan sharks, with the help of the countrys boomingbut largely unregulatedonline lending market.
Female university students in China are asked to send nude photos of themselves, holding their ID cards, to online lenders, to borrow thousands of yuan. The lenders threaten to contact their parents and make their photos public if they fail to pay back the loans, Southern Metropolis Daily reported (link in Chinese) this week.
One student who was identified as Li Li, told the newspaper that she first borrowed just 500 yuan ($76)at a weekly interest rate of 30%from a lender on Jiedaibao, an online peer-to-peer lending platform owned by Beijing-based private equity fund JD Capital. After paying old loans by taking out new ones, Li said now she owes 55,000 yuan, and the lender is threatening to post her naked photos online.
These loans typically range from 500 yuan to 5,000 yuan, and carry a 30% weekly interest rate, even though interest rates for personal loans are capped at 24% annually, the Southern Metropolis Daily said.