Instant, app-based loans could lead you to debt traps

 Instant, app-based loans could lead you to debt traps

The adoption of technology amid covid-19 in the Indian financial ecosystem is on an overdrive. Over the past 18 months, banks and NBFCs have been quick to adapt to this change. In tandem, we also saw a record surge in the launch of fintech apps in India. A recent study by apps analytics firm AppsFlyer revealed that India has registered highest number of installs in the world for finance apps from January 2019 to March 2021. With 1.49 billion downloads, India dominated the universe of fintech apps, followed by Brazil and Indonesia at 500 million and 400 million, respectively. The promise of real-time access to loans makes instant app loans more attractive (on the surface) than personal loans from established banks, especially for urgent requirements. However, borrowing in haste could be your first step towards a potential debt trap and a ruined credit score.

Recently the ministry of electronics and information…

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