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A female student told Beijing Youth Daily that she sent nude pictures to numerous lenders to raise 120,000 yuan to start a business.
But, between February and June, her debt doubled and she was forced to ask her parents for help to pay back the loan.
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 ()—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.
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 dodgy loan sharks then threaten to contact their parents and post the picture online, to make sure that the money will be repaid.
The pictures are transferred through two popular messaging apps, QQ and Wechat.
In one screenshot (link in Chinese, registration required) that has been widely picked up by Chinese media, a lender threatens to send a nude selfie to a student’s parents if she can’t pay back in a week.
The loan shark claims she borrowed 10,000 yuan—at an annual interest rate of 24%—for an abortion after an accidental pregnancy.