Instant loan apps, path to a debt trap

 Moneylenders in Hindi films of the past were portrayed as malevolent individuals whose sole aim in life was to torture the pious hero who was unable to return his father's loan.They later claimed that because bank loans are not available to everyone, underprivileged people are locked in the hands of moneylenders.When I needed a business loan, I discovered that banks only lend against collateral.I was wondering if it would be easier and less expensive to sell the asset and then buy it back when you can afford it. 

The credit card culture emerged with the liberalisation of the economy in the 1990s, teaching us to spend now and pay later.Interest rates were listed in small text, making it easy to ignore them.Then there were the cheap loans for the salaried class, which enabled us to purchase our ideal car, home, and gadgets almost immediately.People continued to take out loans based on the assumption that their salaries would rise steadily.Recession was almost never factored into the budget.Gradually, reports of harassment by loan recovery officers began to enter our ears.We chose to ignore them, assuming that this would never happen to us. 


 

Instant lending apps are the most recent innovation in this field.They provide unsecured loans for short periods of time at exorbitant rates, and they access your personal information over the phone before engaging in aggressive and sometimes hostile follow-ups.The landed interest rate, which includes processing and subscription expenses, can be as high as 80% each year.There have been reports of a loan of a few thousand dollars growing into a liability of lakhs, clearly beyond the means of anyone who borrows small amounts, and even causing some people to commit suicide.A handful of similar apps that provide loans with repayment terms of fewer than 60 days were recently deleted from the Google Play Store. It may contain the problem for the time being, and rules may be enacted to fill in some gaps, but the problem will resurface in other forms.The public rarely has access to the Reserve Bank of India's cautionary notes. 

With the advancement of technology, loan recovery procedures are also evolving.E-commerce platforms tempt you to buy that smartphone that is clearly out of your price range on low-interest EMIs.
You make a purchase, and the reminders to pay keep nagging you every time you use your phone's favourite feature.If you don't pay on time, your phone may be turned off completely.The worst case scenario is when you buy a used phone that was purchased on EMI by the vendor and then have to pay the remaining EMIs.This is similar to a digital block on your life: you can't contact anyone, make any transactions, and no one can reach you. In some circumstances, the threat is to make you look bad by notifying all of your contacts about your pending loan. 

Millions of adverts and advertorials appear in all types of media and e-commerce platforms, persuading me to overspend and buy pleasures I can definitely do without.There isn't much advice about reading the fine print, understanding interest calculations, and minimising risk.No regulatory agency requires lenders to state in bold the net landed price that a customer will pay.Is it lawful to use debt recovery agents and digital threat tactics?We have no idea.No one ever teaches us how to calculate the cost of a loan, which includes not just the interest but also our peace of mind, respect, and dignity. 

We can't do rid of loans because they've been around since the dawn of civilization.We may, however, be lot more selective with them.It's understandable to take out a loan for schooling, to establish an asset such as a home, or for emergencies, but loans for luxury benefit the lender more than the borrower.
The individual at the bottom of the pyramid is the true loser.While their lawyers deal with the courts, the biggest defaulters continue to live in luxury outside of the nation.They will never be harassed by recovery agents or phone blocking software. 

To the best of my knowledge, no non-governmental organisation is striving to educate us on how to avoid living on credit.While mutual funds and other investments such as equities have mandated declarations, the lending ecosystem has essentially none.Is it possible for the government to make it essential for both parties to sign a document stating the total amount to be paid in lieu of loan in one bold figure?Is it possible to set a cap on the annual interest rates that can be charged?Is it possible for these applications to impose an awareness test before approving a loan?Can the terms and conditions be mandated in local languages, given that most documents are now written in English? 

Most importantly, can schools teach students about the dangers of living on credit?Can parents prevent their children from taking out too many debts too soon after they start working?


Look at the thief when he's stealing, not when he's being thrashed for robbery, as my grandma used to say.Consider the long-term anguish a loan can cause instead of the short-term pleasure it can provide. 

If any issue then contacts me at Instant Loan Online


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