The pros and cons of digital loan apps

Are the borrowers getting into a debt trap, without understanding the risks? Digital lending is still a grey area

During a visit to Kolkata in December, I decided to drop by a bar with a few old friends. A group of young men — probably collegians, busy making merry with beer — nearly spoiled our nostalgia trip in Job Charnock’s city.

We were disturbed, but it didn’t take me much time to strike a conversation with the group. The gentlemen visit the bar, where drinks are moderately priced, twice a month. None of them is working. They have been looking for jobs.

How do they get the money to come there so often? Well, it’s not difficult. They borrow from a