Easy loans, hard lives

The growing availability of easy loans and microcredit schemes may seem like a blessing for low-income individuals, but in reality, they are pushing many into a dangerous cycle of debt. Loan apps and quick approval systems often target the poor with minimal background checks, offering fast cash at high interest rates.

While the money provides short-term relief, the long-term repayment burden becomes a trap that's hard to escape. Many borrowers, unaware of the hidden fees and compound interest rates, fall behind on payments, forcing them to take additional loans to repay the previous ones.

This cycle leads to mental stress, loss of savings, and in some cases, extreme actions. The lack of financial literacy and regulation makes the situation worse.

It is time for stronger oversight and public education. Financial institutions and digital lenders must be held accountable for ethical lending practices. Empowering people with financial knowledge is just as important as giving them access to credit.

Rahim Hossain

Student

Bachelor of Business Administration

North South University

rahim.hossain01@northsouth.edu