The Trap of taking loans, from loan apps the mistake most young people do.

[Bitcoin.com97]

I will not say taking loan is tirely bad ,I have seen some business men that loan has helped,they take loan invest in there business and pay little by little from their profit, I understand the interest rate is high,but whereas you have no one to run to for help ,loan will be the only option,but I keep wondering why many people are always taking loan from apps, it's better you take for business sake rather than any small inconvenience their online loan app is open for them ,that is why it seems almost everyone in my country is owning online loan app .

[Faisal2202]

As exact as what they do the same in my country. But not only two apps but, they're like mushrooms that grown everywhere whether they're registered or not, the government can't even shut all of them down. They will threaten not only the borrower but even the people he's signed up as his reference. Too many ads here as well and it's tied up with the vast growth of online gambling, so my countrymen borrow mostly not only for having extravagant purchases but also to access money quickly when they don't have it yet just to gamble.

https://www.dawn.com/news/1770805

A man ended his life, he was 42 years old. He was mature and young enough to know what is good and not. He took a loan, and eventually he had to end his life because the app representatives were threatening him and blackmailing him. I don't know what they had on him, which they were using for blackmailing.

But he ended his life, which resulted in a nationwide investigation of all the apps. The FIA investigated the apps he took loans from, and another authority, the PTA, banned 43 lending apps that were operating without a license. But later they found there are 120 in total, which is good, itself banned by cross-checking with the SECP.

These app owners are not ordinary people, they have a lot of money, and in most cases they are linked with the authorities, unofficially doing business by bribing sometimes and using corrupt officials to blackmail.

[Jasmyne]

I will not say taking loan is tirely bad ,I have seen some business men that loan has helped,they take loan invest in there business and pay little by little from their profit, I understand the interest rate is high,but whereas you have no one to run to for help ,loan will be the only option,but I keep wondering why many people are always taking loan from apps, it's better you take for business sake rather than any small inconvenience their online loan app is open for them ,that is why it seems almost everyone in my country is owning online loan app .

This loan apps are easily accessible, that’s why so many people are borrowing from them and some don’t even end up paying. Unlike most banks, I don’t think everyone is eligible to loans, you must meet some criteria like having a business or earn a particular amount monthly, before you will be eligible.
On the other hand as you’ve said, it is really not bad to take a loan but anybody taking a loan should have a means of paying it back and should be for something meaningful. If there is no means of paying back your loan, I don’t think taking the loan should be an option except you’re sure to pay back, to avoid unnecessary debts.

[r_victory]

Immediate fund availability combined with high interest rates resembles loan-sharking, albeit disguised as a regulated, legal app. While access to credit has certainly become easier, the danger lies in how the loan is used. Many people spend on credit cards as if the money were their own, and plenty of others take out loans for frivolous reasons. Most loans come with high rates; that is how lenders make a profit. At some point, you might need one, but you must be prudent; making timely installment payments minimizes the damage compared to paying late, which is a common pitfall. Only take out a loan as a last resort.

[blockman]

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My government did that banning for certain apps like the crypto exchanges, so it's also possible for these lending apps to get banned and be removed in the play/app store. And I think you're right about that if there's no market, there's no demand. But as seen in my country, there's a huge demand for lending and that's why it's not only the banks that dominates in this industry but also these private lending apps.

Another thing that could be useful is to have these kinds of loans but from local and regulated companies and apps like from local banks, but then this creates another problem. While this would solve the issue of dangerous apps for loans, by having the apps widely available in the country it would encourage people to continue taking these loans out. As you see, whatever is done is never going to bring a perfect result it always comes with its own problems.

The banks have the stricter policies and requirements and that's why it's hard for the commoners to take a loan from them. But if they'll lessen the requirements and be relaxed with the process just as how these lending apps do, they'll get more of these borrowers. I don't mind the process but, borrowers will be borrowers and it depends on where they'll use it but lately many of my countrymen become spend thrifty and uses their money to gamble more.

[Bitcoin.com97]

I will not say taking loan is tirely bad ,I have seen some business men that loan has helped,they take loan invest in there business and pay little by little from their profit, I understand the interest rate is high,but whereas you have no one to run to for help ,loan will be the only option,but I keep wondering why many people are always taking loan from apps, it's better you take for business sake rather than any small inconvenience their online loan app is open for them ,that is why it seems almost everyone in my country is owning online loan app .

This loan apps are easily accessible, that’s why so many people are borrowing from them and some don’t even end up paying. Unlike most banks, I don’t think everyone is eligible to loans, you must meet some criteria like having a business or earn a particular amount monthly, before you will be eligible.
On the other hand as you’ve said, it is really not bad to take a loan but anybody taking a loan should have a means of paying it back and should be for something meaningful. If there is no means of paying back your loan, I don’t think taking the loan should be an option except you’re sure to pay back, to avoid unnecessary debts.

Loan app is accessible these days because of the world is dynamic,changes and new things do comes up on a daily basis, couple with the social media era we are now ,a friend of mine took loan from online app and was unable to pay back due to one or two challenge,guess what ,the loan app design her picture and tag her an organ harvester and sent it to all contact,so they have a way of embarrassing people who are debtor ,so people who think since those loan app are accessible,they can do anyhow with it ,are totally wrong,unlike banks who requires a certain criteria before they can release their money,and trust me those online loan app are making so much profit from people,if you don't pay the they are willing to call you to glory,I will always tell people if you don't have something doing don't ever take a loan , especially online loan app.