Things to take care while taking loan from P2P lending apps

Be careful about these things while borrowing from P2P lending apps:

Check the reliability of the app

P2P lending can only be done through online portals such as apps. Therefore, before availing any loan from the portal, it is important to check its authenticity and reliability through its Registration information, ratings and reviews. Look for any information online, by typing the name of the app on Google.

Compare interest rates

Different P2P lending apps can offer you a loan at different interest rates. Since, your chances of getting a loan totally depends on another person lending money, it is better to compare different apps before availing a loan

Check for hidden charges

P2P lending involves more hidden charges such as processing fees etc that helps them run their business. Therefore, it is important to read the terms and conditions carefully before availing a loan. Go through the loan terms and conditions to check for all the hidden charges and fees that would be applied apart from your EMI

Borrow within your capacity

Whether you are borrowing from a P2P lending app or a bank/NBFC, it’s important to keep your borrowing within limits. P2P borrowers usually calculate your risk on your repayment capacity. Therefore, if you are borrowing beyond your capacity you might have to pay a heavy interest, that might lead to default.

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