One of the phenomena that has proliferated throughout the history of Colombia, given the characteristics of its economic composition, is that of informal lenders, also known as ‘gota a gota’, which lend money to people who do not have access to banks or financial institutions, with very high interest rates and are sometimes financed by criminal networks.
Although for many it seems that these money lenders are a quick alternative to get out of economic troubles, they generally tend to become a headache, since they take advantage of people’s poverty and generate spirals of debt with their interests, not to mention with episodes of violence that can sometimes occur when hanging up on payments.
Monet experts warn that beyond the easy path that drips may seem, it is necessary to avoid them since they are not safe and those who resort to them can be victims of scams. This without taking into account that this guy of loans does not impact the credit life because they are not recorded within the credit history.
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“Although it is a quick option, you should know what the risks are and why you should avoid using this type of loan. Here we will tell you a little more about drop-by-drop loans and the tips to avoid going to them,” they explained.
Drop by drop
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However, it is no secret to anyone that in Colombia, this type of informal credit is used more frequently than it should be and its operation is characterized by the fact that small amounts of money are lent and collection is made in periods of less than a month. This type of loan can be granted by anyone who has capital to lend money.
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“Drop by drop loans are granted for amounts less than $1,000,000, within a period of one month to 5 months. The term is usually quite short, so the person must make daily payments until the total amount of the debt is covered. This loan generates daily interest,” they added in Monet.
The popularity of this type of credit, despite the warning from the authorities, has reached such a point that its modus operandi can already be seen on the Internet, where through fraudulent advertisements or with inaccurate information, Not only do they recruit people to borrow money, but they traffic in personal information.
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According to Monet, digital drippers are informal lenders who promote their services through eye-catching advertisements on walls or poles, word of mouth, and social media accounts with messages of fast and immediate loans. They also operate from commercial premises close to the areas where people live or work.
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“These lenders seek to attract people in need by offering quick and seemingly hassle-free financial solutions. To grant loans, they only request the applicant’s ID, which facilitates access money but also exposes borrowers to high financial risks,” they explained.
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Among their characteristics to identify them, they added that they use mass text messages with links that promise immediate loans and, once the contact is made, they transfer the money directly to their cell phone through digital wallets, and then request payment of the loan with exorbitant interest. applied, which can lead to a spiral of debt.
Saving
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“These informal lenders take advantage of people’s specific needs without explaining the risks and real conditions of the loan. When receiving a suspicious transfer, it is crucial to immediately report it to the financial institution and return the money. It is important to be alert and take preventive measures to avoid fall into these dangerous schemes that can seriously compromise financial stability,” they concluded.
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