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Beware of loan apps: Telangana police warning against predatory lending

One of the biggest dangers is the exorbitant interest rates these apps charge

Hyderabad: Loan apps offering instant cash may seem like a quick fix, but they often come with a heavy price. These apps can be deceptive, employing predatory practices that can leave borrowers in a worse financial position. They often lure users in with the promise of fast approval and minimal requirements, but the reality can be far different.

One of the biggest dangers is the exorbitant interest rates these apps charge. These rates are often significantly higher than traditional loans, making repayment incredibly difficult and trapping borrowers in a cycle of debt. Furthermore, hidden fees can inflate the overall cost of the loan, making it even harder to manage.
Beyond the financial burden, these apps pose a serious threat to your privacy. They often collect vast amounts of personal data from your phone, including contacts, messages, and even photos. This data can then be sold to third parties without your consent, compromising your privacy and potentially exposing you to further exploitation.
Perhaps most alarming is the potential for harassment. If you miss a payment, these apps may resort to aggressive tactics, including relentless phone calls and messages, to pressure you into paying. In some cases, they may even resort to blackmail, using the data they've collected to threaten and intimidate borrowers.

Protect yourself and your loved ones:

Avoid loan apps: The risks associated with these apps far outweigh any perceived benefits.
Spread awareness: Talk to your friends and family about the dangers of loan apps and encourage them to be cautious.
Explore safer alternatives: If you need to borrow money, consider more reputable options like banks or credit unions. These institutions are subject to stricter regulations and offer more transparent lending practices. While the application process may be slightly longer, it's a far safer route to take. They are less likely to engage in predatory lending and offer more reasonable interest rates and repayment terms.
Don't fall victim to the allure of instant cash. Protect yourself from the predatory practices of loan apps and explore safer, more responsible borrowing options.


( Source : Deccan Chronicle )
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