We all face such situations in our lives, where an urgent financial support from anyone or anywhere seems the only plausible solution. In such difficult times, we often look for people who can provide a financial help fast and with minimal hassle.
While looking for such options, a lot of people get into the claws of loan sharks and local money lenders. Borrowing from them usually cost them their lands, houses and valuables over and above the heavy interest payments they are already making. Despite the risks, people still borrow from them again and again due to the ‘no security or no guarantor’ ease in borrowing.
These loan sharks take advantage of these desperate situations and charge exorbitant rate of interest. Usually the interest is so high that the borrowers can only pay the interest of the loan and not the principal. In such arrangements, the borrowers keep paying the interest forever and it becomes a never-ending loan. The other method used by such lenders is to lure the borrower to take more than they need. The ease of borrowing overpowers the borrowers from thinking of future consequences and then it becomes too late to identify the debt trap. Similarly, when the borrowers are unable to close the existing loan, they pressure them into taking another loan and weave them into a never-ending web of debt.
So, what should one do? If you need a loan and you are new to credit, there are many legitimate financial institutions, like Home Credit India, who offer credit to first-time borrowers. If you are not a first-time borrower, then you have plethora of options like banks and NBFCs to borrow from. Always ensure that you borrow from licensed financial institutions like banks or NBFCs. Also, stay away from false promises of easy loans as it can be expensive in the long run, if coming from a ‘Sahukar’ or an illegal money lender.
We, Home Credit India, are an NBFC pledged to help customers in fulfilling their dreams by entering them into a formal credit/borrowing system, under the guidance of RBI. Whether it is purchasing a mobile phone or home appliance or taking a personal loan for your financial needs, we are here to serve you. To know more, you can visit our website.