Why do you think most online loan apps charge the highest interest rates?

[Stardom22]

For me l have been a member for like two to three loan apps in my country. To my surprise, they charge exorbitantly interest rates on loans. What do you think?

 

[Augusta]

Many online loans are unsecured, meaning they don't require collateral. Unsecured loans typically carry higher interest rates than secured loans, as the lender has less recourse in case of non-payment.

 

[Springtime]

The situation is a bit different here. Loan apps do not charge very high interest rate. Sometimes, it may even be lower than bank rates.

 

[Kross]

Most of those online loan apps are not regulated. That's why they charge arbitrary interest rates for loans.

 

[eLdavis]

Most of these online loan apps tends to make it a lot easier for people to get loans, hence they take higher interest.

Post automatically merged: Yesterday at 5:17 PM

Most of these online loan apps tends to make it a lot easier for people to get loans, hence they take higher interest.

 

[Augusta]

High Risk of Default: This higher perceived risk of default can justify higher interest rates.
Online loan apps often lend to individuals with limited credit history