Need cash fast? Urgent loan apps provide quick approvals and instant disbursals, but it's important to compare interest rates and terms before borrowing. Here's what you need to know.
The article from Moneycontrol discusses the functionality and considerations of urgent loan apps in India. These apps provide quick access to small loans, typically ranging from Rs 1,000 to Rs 1 lakh, with repayment periods from 7 days to 3 months. They operate by requiring users to download the app, register with personal details, and undergo a credit check, often using alternative data like social media profiles or mobile usage patterns due to the lack of traditional credit history among many users. Key details to check before borrowing include the app's legitimacy, terms of service, interest rates which can be very high (up to 36% per annum or more), hidden charges, repayment flexibility, privacy policies, and customer reviews. The article warns about the risks of data misuse, aggressive recovery tactics, and the potential for these apps to lead users into a debt trap due to high costs and short repayment windows. It advises potential borrowers to thoroughly research and understand the terms before committing to a loan from these apps.
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