In India with an urban population of nearly 1.2 billion people, which is growing at a phenomenal rate of 9.8% annually, the total outstanding number of loans is about 1.4 trillion rupees ($10.5 billion), and the highest number of lenders is in the form of high-interest rate loans.

About the same time as the article was being published, the finance ministry issued a clarification, stating that the country's financial institutions had to carry out due diligence before extending credit to a borrower. As Reuters reports, 'the ministry said it was not appropriate to describe high-interest rate loans as instant loans because they are not a type of loan that can be easily obtained due to the cost and complexity of borrowing.'

This clarification was followed by government notification and advisories that high-interest rate loan are now banned in India.