Topic: Avoid loan apps, a word of advice. - page 8. (Read 2822 times)

I also experienced it when my cellphone was suddenly contacted by an online loan company offering their product. Though I'm pretty sure I never
gave my phone number to that company. This means that there are people who sell/share my data, and such practices are very detrimental to me.
Therefore, if we are going to borrow money through a loan application, we definitely have to do the KYC procedure, the problem is the possibility of
our data being traded is very high. Because we will definitely be contacted by several different loan applications. The disadvantage is when we borrow
from all of these loan applications, then we will be in debt and will have difficulty in making payments. This happens a lot to the people around
where I live.

The conclusion is that we ourselves must discipline ourselves by not borrowing money from loan applications, because the interest on the loan is
very large. So this is what will ultimately make our lives fall apart. We must realize that if our needs are not urgent, don't even think about
borrowing money. Moreover, we take loans whose interest rates are very high, it must be avoided. If possible find a solution to solve financial
problems without having to borrow money, because borrowing money only makes our life burden heavier.

In this age of technology, everything seems so easy.  Likewise with capital, in the past people were very difficult to get a loan for one reason or another now to get a loan of money is so easy.

However, the rise of online loans has resulted in many complaints from many users, high interest rates and very short payment times, as a result, many people have difficulty even being able to pay them. Most online loans go beyond loan sharks, sucking in deep. 

cases like this went viral in my country a few years ago until the government intervened and eradicated all illegal lending activities.  I have to agree with you, don't ever try to borrow money online even if the company is legal, they will suck someone down to their roots.

It is a common practice that causes harm to borrowers. There have been many cases of selling borrower information to advertising agencies and borrowers have been bothered by strange calls to madness.

In some cases, the companies behind these loan applications take advantage of customers' information to borrow money from other loan sharks. Many people are surprised when a strange company informs them that they have borrowed a sum of money and now have to pay or they will be threatened. This is also happening a lot in my country.

The principle of borrowing funds is only one, are you able to pay off the debt in the future?
if you are able to by reason of having income or salary that exceeds the debt that must be paid every month why not, at least there is still 75% of your salary or income after paying it. And if it's below 50% you shouldn't do it, because it will annoy you later.
do a loan for urgent reasons, because of hospital fees or other reasons I think it will help but have to look at our situation, if in doubt because of mediocre income or salary it is better not to and look for other solutions.
study and read carefully the loan terms are very important and also always a problem and confusing when payments are delayed which is a problem because you don't do thorough research first, online loans are very easy and disbursement is fast but we also have to be smart and firm before doing it.
and my advice is to avoid borrowing money from anywhere if it's not really important or urgent, and also look at the situation and have to think a thousand times before doing it even if you feel you can pay it off.

What's more dangerous is that usually a money loan application before giving a loan will always ask for complete personal data along with selfie photos and also important documents such as a citizenship identity card or passport. I understand that it is for some kind of guarantee. but still I'm more afraid of it being misused.
and I have found many cases of people who are in arrears on loans, their data will be leaked and even made viral. maybe if you live in my country you've also read the news.

but I also understand that those who borrow money through a money loan application are out of necessity and because of an urgent need. and indeed sometimes the fastest way is to borrow from such an application. even now there are many types of applications and many choices in the playstore. from those who ask for collateral to those who offer unsecured loans.

so still we can't blame the borrower because sometimes they are forced to do it. but at least we need to give them attention that they should be careful.
because sometimes because of its ease in providing loans, it makes customers addicted to continue to borrow. so that the loan becomes bigger every time you finish one period and borrows again in another period with a larger amount. I am worried about the addictive effects of loan applications like this. although there are also positives from loan applications like this, namely helping make it easier for people who are in need of fast funds. but sometimes people have to realize that it should not be made a habit. so borrowing became commonplace. unless the person has a stable income to cover the bills. but of course people who have a stable income will be very few who use this kind of application.

It is really your responsibility since you have borrowed then it is really just right that you would pay them in due time or else you would really be
having some headaches when the time comes that they would really be making some legal actions towards you.As far as i know on where someone could
take up some loan whether its an app or program then you would really be that identified or had passed up verifications on to those apps which simply
means  that they do have the information about you and its just dumb that you do have plans on running away and not paying up the loan knowing that they do know
you unless on using other identity but its none ethical and totally illegal. Loan should be repaid out but of course it would really be ideal if you do make out this option as your
last resort.

If you are taking a loan to any platform or any app, the responsibility of taking care of it is on you.
I don't think they will deduct without prior notice or arrangement with the debtor.
I do agree that the repayment dates are already laid out after acquiring the loan.
This is on your responsibility now how to make sure you will pay on time and not forget the dates.
Because there is advantage of taking the loan, specially if you are tight with the budget.
But once you get it, you should remind yourself about your due dates.

Your friend only have themselves to blame in this scenario. Unfortunately lots of people, usually when people are quite young, don't seem to understand that it is not "free money" but has to be paid back and sometimes it takes a long time at great additional expense. I suspect at the very beginning, when the loan was first taken out, the repayment dates were laid out pretty clearly in the contract and these contracts sometimes aren't understood by the recipients as they should be. You don't need to avoid loan apps, you just need to be very clear on when the repayments will take place and ideally want to make sure you only take loans at below 5% or you'll be paying an obscene amount back. Paying them back as quick as possible is also a good idea, they can even be good for your credit score if you pay on time every time.

Relying on money from other people is always dangerous, they will charge us fees and interest and might cut us off without a notification. I try to rely on myself as much as possible, when I was younger I only borrowed money from my family or close friends. From them I knew that they wouldn't rip me off. When I went go university it was the first time i had to borrow larger amounts of money from a bank. I made sure that that it is a longer running loan that will be fully repaid at the end. Like this there is no risk that the bank demands full repayment at one point. Loan apps now sound even less trust worthy than the big banks and even if we blame them for our misfortune, it won't change the situation. We need to be on top of our finances.

It must be because those do not tend to take collateral before providing the loans, because I have noticed that on Binance for example, there is a lending service with interest I personally find competitive and fair, but of course one needs to leave as over-collateralized amount of USD in crypto. However I have no experience taking loans on FIAT apps and I have no idea of the typical interest rates they enforce for their services.

Yes because they will just get into trouble especially when they cannot pay their loans since this loan sharks using apps mostly threaten and disturb so bad their clients just to force them pay what they owe to them.

Also we shouldn't take any loan if we really don't need it because we will just get huge stress for doing this because for sure in future once all the money we borrow already gone we will struggle to pay it especially if we don't have good profit generating options.

Could be better if there's an example of the name of an application. I once bumped unto them but that was a year ago so I forgot the name.
This kind of services are worse than what they offer in banks so it would be best to just choose taking a loan with them than this unreputable applications.
Maybe it will be helpful during emergencies but if it is for investment purposes, you are certainly going to lose more than what you will get with your investment. It will be like you are just paying the interest for every penny you will make or worse if the investment fails.
I agree, not recommended.

People should really only be using bank apps, PayPal & crypto wallet apps.

Anything else that tries to take and give money to you is just inviting you to get some trouble from it (This includes crypto exchanges).

They are becoming rampant these days with their numerous ads that could very tempting to the weak. The worst part is the encouragement of borrowing culture especially in places that are not used to that, plus reckless borrowing. I'm never interested in borrowing money from strangers & I hardly borrow even from my relatives but somehow they believe I need loan & constantly recommending it to me via ads or on playstore.

They somehow managed to persuade someone close to me to borrow with dubious advice (acccording to him/borrower) on ways  he could repay them the loan. According to the borrower, he was told to borrow from other lending apps for repayments.. plus other ways he was deceived and wronged by the lenders. I ended up discouraging him from repaying them & the national crime fighters also went after them during the period. They do not disturb him for repayments anymore, there will be consequences if they do.

Well I see loan itself as risky way to get the money but in the world of inflation and survival needs above our salaries we have no options but to take it now and then.

Seriously, I am also encountered with number of app suggestion associated with these loan apps. I think with the ease if forming such financial systems anyone is becoming lender and charging more than 35% interest per anum. Better be cautious and seek loans from banks only.

I will rather advice never take a loan you cannot afford to payback before the due date. I feel victim to this loan app saga sometime in 2020 where i took a loan to study a course and while i was still studying the due date for repayment got elapsed and unfortunately i got credited by a family member for an assignment he wanted me to execute before i will wake up the next morning to make withdrawals and handle the task i got debited by this loan app. This almost ruined the trust this relative of mine had for me.

But people will never know the risks of borrowing money through the app because they never meet face to face.
By registering through the application, they will not read too much about the terms and conditions that apply to the online loan application.
And this is what makes many people fall into the trap of that application because if that person is late paying each month, they have to pay a hefty fine.
And they even have to repay the loan in large amounts later.
It is better to avoid this loan application and as much as possible, not to borrow from any party, including your bank.

Actually the loan application is not a solution, but will add to many problems. Once we are entangled it will be difficult to let go. they are like leeches that continue to suck you up.

Why take a loan to do what will not bring back returns to pay for the loan collected? Your friend took a loan to spend and forgot that there is a payment period in place or was she thinking of not paying back? What good will it be even if they had told her that they will be deducting the amount from her BAnk acccount? I want to believe all the ToS would have been stated in the agreement she must have signed before taking the loan. It is simple, If you take a loan, best be prepared to pay it back when due or stay away as you said. ^{I don't do loans anyways cos of the Interest (Riba)}

Unfortunately a great deal of people fall into the trap of those loans that come without any kind of background check on their ability to repay the loan, this means that they end up getting so much debt that it is going to be almost impossible for them to pay their loan especially since interests are very high in those types of loans, so I will suggest to anyone that is thinking about doing something like that to never do it because whatever problem that you had a time that required that loan is probably going to get way worse if you take a loan like that.