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Loan apps, i was aware of these things even into our local online wallet provider did really have that kind of offering but of course the interest is on the rooftop which makes even more worse.
It must be because those do not tend to take collateral before providing the loans, because I have noticed that on Binance for example, there is a lending service with interest I personally find competitive and fair, but of course one needs to leave as over-collateralized amount of USD in crypto. However I have no experience taking loans on FIAT apps and I have no idea of the typical interest rates they enforce for their services.