Getting student loans in China? Be prepared to send nudes.
A number of loan companies in China found themselves in hot water this week after it was reported that certain lenders were demanding nude photos of female college students to serve as collateral for larger loans.
According to the state-run Beijing Youth Daily, a number of students were being forced to provide naked photos of themselves in exchange for approval on large student loans that the students were requesting for college expenses. The agreement allows the lenders to publish the naked pictures of the students if portions of the loans are not repaid on the dates agreed by the lender and recipient.
The agreements are set up on a website called Jiedaibao, operated by the venture capital and private equity firm JD Capital Co. The site allows for individuals and businesses to enter into loan agreements with other individuals, often reaching agreements on their own terms.
One student, Lin Xiao, had requested 120,000 yuan (~£12,873) in order to finance a small business she wanted to start. Four months later, her debt had more than doubled, and loan sharks were threatening to publish her nude photos online. In order to save herself the embarrassment of having her nudes published, she was forced to go to her family for money to pay back the lenders.
In America, college students who take out large amounts student loans are often required to put up some sort of collateral, usually in the form of a financially stable person who can co-sign the loan. Defaulting on the loans can result in a myriad of financial consequences for both the borrower and cosigner, including bad credit and wage garnishment.
