Loans can be ruined by taking loans from Instant Loan App, 10 ways to get shocked
Reserve Bank has taken action
Taking cognizance of the complaints, RBI has taken action on the applications for giving instant loans. RBI has issued a guideline saying that only banks and shadow banks have the right to give and recover loans. RBI has clearly said that there should be no interference from any third party in this process. The Reserve Bank has clearly said that those who have taken a loan through the app, will pay it, there should not be any pressure on them. The bank said that the app should collect data only what is necessary.
Cannot increase credit limit
The Reserve Bank has said that the app cannot increase the credit limit of the customer on his own mind. The RBI was receiving frequent complaints against all the platforms giving digital loans. Following complaints, the bank constituted a committee last year. The bank had asked the committee to study the complaints and come up with a solution. Taking a digital loan is as easy as it is harmful.
What is the loss
Apps charge huge interest.
For not paying the installment, they impose a capricious penalty.
a credit score is affected
Most instant loan apps are not registered
steal data from phone
A service charge is levied for giving a loan
There is a lot of abuse to recover the loan amount
There has also been a complaint of blackmailing