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.

[Somto9Light]

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 .

Right, most people take loans to support their business or any emergency that needs urgent attention, but the problem there is that some of them take loans that they will find it difficult to pay back and it put them under pressure that will stress them to the point of giving up everything they had to make sure they pay off their debt and also, some people who takes online gambling don't read the rules carefully to know the terms and conditions of it, so that they won't get trapped in situations where their mental health will be affected.

[Pablo-wood]

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 .

Business loan is only good when there is a structure and the duration for repayment is lengthy. There are still business owners who took loans and got trapped. It the repayment method isn't flexible I won't even advice a business owner to take a loan. A high interest rate with a lengthy repayment plan that is flexible is by far better than a low or moderate repayment plan. Online loans most times are desperate for patronage that is why people take loans from them even if the debtors don't have a repayment plan.

[Crypto_Timothy]

This is a trap I entered myself years back and I know how much mental stress I went through, even till now I know how stressful I get whenever I see a loan app advert on my phone. In my country the debt circle has taken hold of alot of futures, I know some of my friends who are stuck in this financial loop of a thing and it is truly just sad man.

I can't even say let's call on the government to do anything because I'm pretty sure they are somehow involved, that's even why there are alot of these loan apps and adverts, I don't even think they are regulated, at least not all because it is just too much at this point.

[BTC FutureKing]

This is a trap I entered myself years back and I know how much mental stress I went through, even till now I know how stressful I get whenever I see a loan app advert on my phone. In my country the debt circle has taken hold of alot of futures, I know some of my friends who are stuck in this financial loop of a thing and it is truly just sad man.

I can't even say let's call on the government to do anything because I'm pretty sure they are somehow involved, that's even why there are alot of these loan apps and adverts, I don't even think they are regulated, at least not all because it is just too much at this point.

You are 100% right and I also agree that loan apps are a trap from which it is very difficult to get out. Very few people have seen those who have set foot in the world of loans and have managed to get rid of this debt by improving their lives because most of them, including some of my acquaintances, have taken loans from loan apps because it is easy to repay the money in the beginning, but if you do not have the courage to repay more money, then you take loans from another app. Therefore, instead of getting out of the debt trap, we get stuck in it again. Therefore, the best method is that you do not install loan apps. If there is an existing debt, do not take another loan to eliminate it. Rather, try to eliminate the debt by saving money from the monthly budget and keep yourself strong not to take loans because loan apps are actually a mental stressor.

[tabas]

This is a trap I entered myself years back and I know how much mental stress I went through, even till now I know how stressful I get whenever I see a loan app advert on my phone. In my country the debt circle has taken hold of alot of futures, I know some of my friends who are stuck in this financial loop of a thing and it is truly just sad man.

I can't even say let's call on the government to do anything because I'm pretty sure they are somehow involved, that's even why there are alot of these loan apps and adverts, I don't even think they are regulated, at least not all because it is just too much at this point.

It's financially draining when you abuse these loan apps. At some point, they're the quickest way to get money but their interest are absolutely crazy and higher than the banks. So if you're in need of money, go to the bank and take that loan if you want to. Because interest rates are lower and more flexible in terms of paying them back. The pressure that these loaning apps give are making them superior since they're the loaner and borrowers are slaves to them. One big lesson to be learned from your experience and the others, is to never take a loan that you can't afford to pay.

[Bushdark]

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 .

People have been using loan money to avoid paying taxes and I do not see it as a bad idea for people to take loan except when the reason for the loan is not sufficient at all. There are people that can take loan for selfish and stupid reasons.
Taking loan because you want to gamble or you want to buy luxury when you know that your monthly income may not cover the loan, then taking such loan should be avoided except if there is expected income you plan to use to pay the loan. Taking loan for good reasons is understandable but not for the mere reasons of satisfying your urge to use money for unimportant things.

[eaLiTy]

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They are not, I already explained it above and you didn't read my post. Anyone who commits suicide because of this is at fault, not the apps providing the loans. Such loans are available by reputable establishments already such as banks and depending on the country the rates can be 5% to 25% or even more per year with many providing near instant approval. That is not any different from these instant loan apps that you talk about, which must have worse terms than the respective banks in the countries. We need to stop blaming others for our own decisions and faults, it is time to become more responsible people and not give excuses for the wrong decisions. Many of these loans were taken as spur of the moment decisions, for reasons of greed or envy. Definitely in those cases no blame at all falls on the loan provider, only on the loan taker.

I am not sure whether you are reading everything that I mentioned in my post. I will quote it for you again so that you can read what is written very clearly.

The second phase involves their collection tactics, which rely heavily on blackmail. Since almost all of these micro-loan apps are illegal and this is a major issue in India, I am certain the exact same thing is happening around the world as well.

~
The 22 year old BDS student from Kerala who died in April took a tiny micro loan explicitly because his mother desperately needed medical treatment. He was not trying to fund a luxury lifestyle; he was trying to save his mother. The operators went after his college faculty, morphed his photos, and harassed his social circle until the shame became completely overwhelming and took his life.

If you seriously think that this is normal behavior for instant loan app companies, then I have nothing more to say. I am not living in a utopian virtual reality to accept this as normal human behavior, nor should a financial company be allowed to blackmail and harass their customers just like that.

I did, and the case that you brought does not say anything against what I wrote. You took a very bad example and then made very big generalizations against all kinds of loan apps which is incorrect. We can never make judgements about a whole sector simply because there are some extreme cases. In most of these cases the issue lies entirely with the user.

I am certainly not sure whether you are seriously thinking about what you are actually claiming here. I did not just point out two bad examples to generalize the entire industry. You can find thousands if you take some effort to understand the illicit way in which the majority of these loan apps function. Below, you clearly explain how to recover funds through illegal methods.

There are only 2 ways to get back your money from the perspective of the lender and they are either legal ways or illegal means. The reason why companies or individual resort to illegal means is usually either because the legal system is weak and does not protect the lenders properly or is very slow, or because the loan its is not legal in some way. In many cases loan sharks behave the way that they do not because they like to do it, it is because the people don't pay back the money that they owe in terms that they agreed on. We need to separate clear cases.

So what you are saying is, these loan apps could resort to illicit methods of collection if the system is weak. Even blackmail and extortion are normal. I am not sure what kind of society you are exposed to. If a company cannot run according to the law, then it should cease to exist.

Case 1: Loan shark acting crazy, unreasonable, asking more repayment beyond what was agreed. This is truly bad and the fault lies at the loan shark and they can be considered evil. This is what you would see more often in movies.
Case 2: Loan shark demands money as agreed with the person, person does not pay back as agreed for whatever reason. This is when they try illegal tactics because they have no other choice! If the loan is illegal or it is a person or company that does crime, then there is no way to demand this money back legally. They can only try illegal tactics or accept that the person may never pay back. They can never accept that someone does not pay back or they will go bankrupt, everyone would try to get a loan from them and try to cheat them this way. That is why they enforce this system with violence, because it would not work at all otherwise!

Like I mentioned above, in a civilized society, it will not happen.

For users who are reading this thread: if you face these issues with any loan app and they resort to extortion and blackmail, simply file a police complaint. Anyone who acts criminally will be prosecuted and jailed without a shadow of a doubt.

So in cases of number 1 you are right to blame the lender, but in cases of 2 the blame is always at the borrower. If people paid their money back as agreed there would never be a case like 2 in existence, but they don't and that is why lenders get violent and do all kinds of illegal things like the blackmail that you have given as an example. Banks don't have to deal with that kind of stuff because they do things completely legally, they will take your house, collateral, or start legal proceedings against you without waiting even a moment. I really dislike people who don't pay back money, I have lost many friends to small amounts of money and I know many others who had the same happen. People who don't pay back what they owe are terrible people, it does not matter what you use the money for because it is not yours and you have to pay it back no matter what.

I am not sure you are actually following what I mentioned. You are defending these illicit business methods. Just because you have a relative or friend who took out a loan and didn't repay it has absolutely nothing to do with the massive loan app menace currently targeting most countries.

Again the point is, this person did not have to take the loan to provide medical treatment to his mother. Don't use good sounding reasons as excuses for bad behavior, that was not a trap because he inflicted it on himself. The responsibility in cases like that are always on the loan takers. For example if you take a loan from a local and known violent loan shark, then you accept anything that can come as a result from that!! Don't blame the world for your persona mistakes.

Morphing photos of a student and sending them to his college professors is not 'debt collection'—it is criminal extortion. I have spent enough time explaining basic things to you, and this will be my last post in this thread. Taking a loan is a financial transaction; threatening to ruin a student's life or anyone else's through digital harassment is a crime.

[Mr Reporter]

It's financially draining when you abuse these loan apps. At some point, they're the quickest way to get money but their interest are absolutely crazy and higher than the banks. So if you're in need of money, go to the bank and take that loan if you want to. Because interest rates are lower and more flexible in terms of paying them back. The pressure that these loaning apps give are making them superior since they're the loaner and borrowers are slaves to them. One big lesson to be learned from your experience and the others, is to never take a loan that you can't afford to pay.

You are very much right most loan apps feel like "quick rescue" but they can turn into a trap so fast and that's what people fail to understand when taking such a risk, and the crazy fact about this loan app is that they are mostly have hidden fees we pay unknowingly if one is so unlucky, and yearly banks might even want to charge like some little amount after gaven you the loan, but loan app take 14 days to take 30% and by the time you even noticed you have double paid for the loan.

You see that Daily calls, texts to contacts, threats. It makes you feel like a slave, like you said. You’re not just owing money, you’re owing peace of mind… in fact, back then some loan app called me to tell me there are going to kill me if I didn't pay the amount and owing…and how funny it was then…

[GiftedMAN]

You see that Daily calls, texts to contacts, threats. It makes you feel like a slave, like you said. You’re not just owing money, you’re owing peace of mind… in fact, back then some loan app called me to tell me there are going to kill me if I didn't pay the amount and owing…and how funny it was then…

It is never a crime to take loans but you see the issue of loan apps threatening their customers that's what you shouldn't take take because you didn't steal from them or obtained the money through false pretense. I think the best thing should be to always replay the loan you took but if they decide to threaten you then you should pursue a legal action against them so that you will not end up losing your life simply because you took loan from a company. Your peace of mind matters so much and tou shouldn't get involved in things they would affect you but since taking loans is not an offense I see no reason why any institution should kill anybody send you messages that would affect your peace of mind.

[AmaGold70]

Using loan app is actually a trap for those who cannot keep to the terms, and conditions of the loan they are collecting, but so so far you are credit worthy there is nothing wrong to take a loan from loan app more especially when you have emergency. People like taking loan from loan app because they feel is an easy place to take a loan, most times when you want to borrow money from individuals, even little money, they will even look for collateral for the small money you want to collect from them, but in loan apps, you don't need collateral, and that is one advantage they have.
It wise you repay your loan as at when due, it gives you access to more loan, and increases your loan credibility, and reputation.

[johnsaributua]

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People have been using loan money to avoid paying taxes and I do not see it as a bad idea for people to take loan except when the reason for the loan is not sufficient at all. There are people that can take loan for selfish and stupid reasons.
Taking loan because you want to gamble or you want to buy luxury when you know that your monthly income may not cover the loan, then taking such loan should be avoided except if there is expected income you plan to use to pay the loan. Taking loan for good reasons is understandable but not for the mere reasons of satisfying your urge to use money for unimportant things.

There's nothing wrong with borrowing, but use the money you borrow for something that can reap returns. This means borrowing just to buy additional goods is certainly a positive idea as many situations don't work that way, ultimately making it difficult to repay the person who lent us the money.
This selfishness never goes away in us humans, especially if we often gamble. The solution is to continue seeking out those who seek personal gain just to borrow money, ultimately leading to inability to make repayments because the borrowed money isn't being used in a way that could generate revenue, such as adding to a declining business. And I completely agree, as you said, that taking out a loan shouldn't be done solely to satisfy personal desires, but rather to a place that can lift us out of adversity.

[YellowSwap]

If not for the love of money I don't know why it's not bad for bank apps to have loans available to all bank accounts, age isn't even a concern to them, there is no restriction of any kind too.

We are now in a world where bank apps introduce gambling to their customers, even loans, every possible ways of getting people wrecked is their goal.

I don't have time to look into these things because bank app is now a way to exchange online cash to physical, this is the only reason why I still use them.

[Nothingtodo]

If you take a loan from unreliable apps, then naturally you will have to repay the loan and pay interest. Even then, if you take a loan using apps, then you may be reluctant to do your normal work. If you suddenly need money, then instead of earning, you will express your desire to take a loan very easily. In this way, you will become dependent on loans day by day. Moreover, it is possible to get loans very easily online, which is why people are taking loans at a higher rate than before and there have been widespread irregularities in people's income. In my country, the crowd of people in NGOs has increased many times more than before, only because people's interest in loans has increased.

[LastKiss]

Using loan app is actually a trap for those who cannot keep to the terms, and conditions of the loan they are collecting, but so so far you are credit worthy there is nothing wrong to take a loan from loan app more especially when you have emergency. People like taking loan from loan app because they feel is an easy place to take a loan, most times when you want to borrow money from individuals, even little money, they will even look for collateral for the small money you want to collect from them, but in loan apps, you don't need collateral, and that is one advantage they have.
It wise you repay your loan as at when due, it gives you access to more loan, and increases your loan credibility, and reputation.

Another trap is when borrower becoming addicted to borrowing money from loan apps because they make the process so convenient compared to banks. That convenient made people lazy to read those details so no wonder people feels like they're being trapped by the loan apps. The last time I borrowed money from a bank, it took about a month for the money to be credited to my account butwith loan apps, it only takes a few hours and the application process is so simple.

What makes me think twice about using loan apps is their very high interest rates compared to banks. They advertise their rates as if they're low and competitive similar to what banks offer. But in reality if we don't carefully read the loan details or ask for clearer information, we can be shocked by how high the actual interest.