#  >  > Business, Marketing, Advertising, Finance >  >  > Business Management & Administration >  >  > Finance >  >  Cashwagon Sri Lanka - A Trashing Online Microloan Company

## Moana

Hello Everyone,

This previous month I took a loan from a personal online microloan site* Cashwagon*. The initial amount I applied for was 30,000 LKR (receiving 28,000 with 2000 service charge) whereas at the end of the month I had to pay 54,000 in respective with the interest added. ( Initial amount to be paid with interest was 44,500 LKR, ended up paying 54,000 LKR) With 2 months due to payment ( I tried reaching them out through several phone calls, but the only official reply from their end was ''NOTHING,'' just saying the customer's name without even a greeting '' Hello'' indeed!)* BASIC MANNERS IN CUSTOMER SERVICE!*

Perhaps, hanging up on the call immediately with improper communication.

I was charged with an extra interest rate and indecent verbal communication while approaching them to settle my initial loan amount along with the right interest.
My on-time settlement was delayed due to their improper communication ( They failed to answer my calls, ALWAYS when I wanted them to ask my concerns regarding the additional interest charges) 


The site clearly explains that under their terms & conditions it is said that '' If get to pay Rs. 25,000 and select 6 months easy refund, your monthly payment is Rs. Only 6,750 are owned by. Therefore, the additional cost of your loan amount is Rs. Only 2,583 people, but I ended up paying 54,000 LKR with an additional interest rate. ( The amount I applied for was 30,000, receiving only 28,000 as I said with a 2000 service charge) 

I mean which online microloan site in Sri Lanka would charge a service charge & high-interest rate like this

My enormous awareness at this point is, Why this hasn't still been brought to The Central Bank of Sri Lanka's attention??!

My major concern was I paid the whole amount 54,000 LKR this month ( having all the right to question) while they responded me back that there WASN'T a loan settlement, which was pretty reckoning to me about their fraudness!
While discussing this issue over the phone, I faced the following inconveniences 
*
1) No proper communication, They started trashing me with improper Tamil language
2)They were not able to communicate even in basic English language
3)The site's services holds only an English & Sinhala Language content. ( The only particular reason bringing this into your high attention is because the site doesn't have a Tamil language briefing)*

It makes me wonder, how they could even want Tamil customers, while not having Tamil language content and communications within them. ( It is the right of every citizen to stand up this illegal issue, serviced by Cashwagon!) 

Cashwagon, the worst/fraudulent online microloan site, neither me nor any citizen in the country could experience. 

This is something that has to be brought up to the nation's attention, extremely remarking! 
*
1) The higher Interest rate
2) INDECENT COMMUNICATION with customers
**3) The site not having TAMIL language briefing but still wanting Tamil customers
*

Please do let me know, as a citizen of this country what you think about this?

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## Bhavya

First time hearing about these kinds of online loan companies in Sri Lanka, Really sorry for what happened to you and appreciate your effort to make awareness about this issue to others!

I checked their site, as you said they don't have multilingual languages options, also there are no proper details about how they are costing their interest rate (interest rate is very high) and seems like there is no proper process or documentation to get the loan. TBH if I see these kinds of sites I will never take a loan from it. In the above explanation it's clear that not only fraud they also verbally abused you. Can't you take legal action against them? in case if you have proper evidence against them.

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## Ahamed

Hello Mona, 


After reading your post. I saw their website and service. One interesting thing is When I see their google review most of the people are post bad reviews for their service and I see some good reviews also. Most of the reviewers recommend don't use their app and service. Some reviewers post The company charges 44% interest per month. Actually our Central Bank of Sri Lanka rule is to not charge a rate exceeding 35 percent per annum, inclusive of all other charges for micro-finance loans. If any relevant person please tell me how it's possible?


Lastly, I recommend that if you need to get a loan, please check the reviews and old customer thoughts. Better we avoid this type of loan companies and their services.

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## Milko

I think they are charging meter interest, the rates like Rs.10,000 per month for Rs.100,000.00. :Confused: 
wondering how the central bank of Sri lanka allowed these thugs to do this type of business onilne. BE AWARE!

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## Bhavya

> Hello Mona, 
> 
> 
> After reading your post. I saw their website and service. One interesting thing is When I see their google review most of the people are post bad reviews for their service and I see some good reviews also. Most of the reviewers recommend don't use their app and service. Some reviewers post The company charges 44% interest per month. Actually our Central Bank of Sri Lanka rule is to not charge a rate exceeding 35 percent per annum, inclusive of all other charges for micro-finance loans. If any relevant person please tell me how it's possible?
> 
> 
> Lastly, I recommend that if you need to get a loan, please check the reviews and old customer thoughts. Better we avoid this type of loan companies and their services.


Hi Ahamed,

After reading your comment I checked the Google reviews about Cashwagon and you are right most of the people bad reviewed about the company. You are absolutely correct if we check reviews before taking any decisions we can avoid unwanted inconveniences and frauds. Thanks for sharing the Central bank of Sri Lanka statement about micro finance loan and enlighten us with the proper information. If there is a rule that loan companies can't cost more that 35% per annum then how come this company cost 44% interest per month and still running without any legal action against it? Is there is any way to send legal petition against this loan scheme to the government and make them to take proper lawful action against this loan company?

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## Beacon

As far as i know they are one of the worst loan sharks lending money to the poor and crunching their earning until their last blood! I'm wondering how comes such scammers allowed in our country to do such dirty businesses here! Probably they are backed by the politicians to avoid the legal issues otherwise Central bank of Sri Lanka might do something to kick them out from our country.

These loan sharks targeting middle class and very poor people who are really scared about their reputation where big fishes won't scared about it! Hope verdict will be soon.

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## Beacon

Looks like the Cashwagon Sri Lanka is closed their physical office since CBSL and authorities started chasing them and now calling the exisiting customers from various sources and abssuing them to pay even more even if they already paid the loan. very detailed investigation report available here about how they ruined people life :




> 





> Vietnamese media reported in June, 2020 that Vietnam police launched an investigation into Cashwagon Co. Ltd and Lendtech Co. Ltd., based in Singapore, for lending money at unreasonably high interest rates. Cashwagon has a presence in Sri Lanka, Indonesia and the Philippines, according to its website.
> However, Cashwagon Sri Lanka is no longer carrying out any promotions since last month (October, 2020). Its website no longer allows people to apply for loans. When contacted, Samila Fernando, the CEO of Cashwagon who wished to be identified as the former CEO, said the company is dormant at the time being. As the reason for the abrupt closure, Fernando said it was due to the pandemic.


Source :
http://www.dailymirror.lk/video/ANYT...NEY/218-200521
http://www.sundayobserver.lk/2017/12...80%93-cb-warns

If you look at their site, still they enabled Payment gateways and wallets to force the people to pay more even they down't owe them. I don't understand how the heck the goverment and authorities are still allowing such daylight robbery.

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## Bhavya

> Looks like the Cashwagon Sri Lanka is closed their physical office since CBSL and authorities started chasing them and now calling the exisiting customers from various sources and abssuing them to pay even more even if they already paid the loan. very detailed investigation report available here about how they ruined people life :
> 
> 
> 
> Source :
> http://www.dailymirror.lk/video/ANYT...NEY/218-200521
> http://www.sundayobserver.lk/2017/12...80%93-cb-warns
> 
> If you look at their site, still they enabled Payment gateways and wallets to force the people to pay more even they down't owe them. I don't understand how the heck the goverment and authorities are still allowing such daylight robbery.


This is ridiculous, It's high time for the government and authorities to take this issue seriously and get rid of this fraud business from the country. Their 
negligence can let more people to suffer in the hands of these frauds.

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