Instant Loan: Convenience or Debt Trap? 5 Things to Know Before Taking Quick Credit

• Pre-approved messages are marketing tactics, not a guarantee; final approval depends on credit history and verification.
• Focus on Annual Percentage Rate (APR) instead of just EMI to understand the true cost, as digital apps include high processing and convenience fees.
• Verify RBI registration; unauthorized apps can overcharge and misuse personal data. Ensure the app is linked to a bank or registered NBFC.
• Frequent small loans or delayed payments can severely damage your CIBIL score, impacting future large loan approvals.
• Demand a 'Key Fact Statement' (KFS) from digital lenders, as mandated by RBI, to understand all loan expenses and terms.