Stick to regulated entities for short-term personal loans: Analysts

Avoid online platforms that charge exorbitant interest rates

The issue of online lending platforms (OLPs) charging exorbitant rates of interest and upfront processing fees from borrowers, and harassing them through their recovery agents, is once again in the spotlight.
 
The Delhi High Court last week heard a public interest litigation, where the petitioner alleged that OLPs charge interest rates as high as 500 per cent per annum, and processing fee of up to 30 per cent.
 
Until some regulatory action is taken against these entities, borrowers need to watch out for their interests themselves.
 
Stick to regulated entities
 
Most problems arise in a