A growing number of Chinese university students are being targeted by loan sharks who demand nude photographs as collateral, according to a report in Guangzhou-based Southern Metropolis Daily.

"The nude photos will be made public if the borrowers fail to repay their debts with interest," an insider was quoted as saying by the newspaper.

Some students who failed to repay their debts in time have sought police help, accompanied by their parents, after being threatened with sexual violence or having their nude photos published online, the newspaper said.