Your argument totally ignores the fact that this pre-installed app reads the user's data and communications from any app they use on that device. So they are no

Your argument totally ignores the fact that this pre-installed app reads the user's data and communications from any app they use on that device. So they are not only effectively losing their privacy, but the app is also surveiling them since it transmits the GPS location to the device owner/lenders. There are also other human costs. E.g having your conversation on WhatsApp etc. being cut off midway due to a late repayment. I'd argue the weight of this falls more on the compliance methods & tactics used than the loan financing rate itself.