“Financial Inclusion” in P2P Lending May Just Be a Debt Trap in Disguise

There is something deeply attractive about a loan that arrives before the need becomes an emergency. For millions of people who have spent years outside traditional banking, this can look like freedom. When credit becomes extremely easy to obtain, the question changes from “Can this person get a loan?” to “Should this person be taking another loan?” and this is where the debate over financial inclusion and predatory inclusion begins. The World Bank describes digital credit as typically short-term, relatively small loans delivered through mobile devices, often using automated or alternative-data credit scoring.

Source: DeFi Planet