Students from universities have reported that some local financial platforms offer quick loans of 1000 dirhams aimed at their children and catch them in the trap of early borrowing without a regular income or job. They highlighted the danger of such practices for the future of their children, teaching them recklessness, dependence on loans, and spending larger sums of money than their income. Additionally, a 10% fee is charged, around 100 dirhams, alongside 34% annual interest rates, calling for the prohibition of these platforms from marketing to students and not granting them loans without a written consent from a guardian.
According to the guardians, electronic platforms in the country provide quick loans with very simple conditions: only a valid student ID for individuals over 18 years old is required, a sum of 1000 dirhams is offered, a fee of about 100 dirhams is deducted, and the student must repay the loan within one month, and in case of delays, a fine of 40 dirhams per day is charged, plus established interest rates on the loan.
Most university students do not have a regular monthly income, which means their parents will be compelled to settle their obligations before these platforms. Guardians underline the danger of early borrowing for university students or individuals over 18, since they are still unable to manage their finances wisely and need support to learn about healthy financial culture rather than being lured into a long-term trap.
Banking expert Amjad Nasr mentioned that such platforms offer short-term loans at high interest rates, apply high fees, and conduct borrower checks through Union Credit Information for income verification and credit history before issuing a loan of 5000 dirhams. However, for students without a constant income, such checks are typically not conducted, and they receive only 1000 dirhams or less.
The loan financing period on these platforms usually consists of three months to avoid the risks of not being able to repay, and interest rates on them are high, along with high penalties for delays. Nasr emphasized the necessity of obtaining guardian consent for individuals aged 18 and students without a stable income, to ensure parents are aware of their children's financial actions. He added that there are no guarantees provided when issuing loans to students, as they typically only require a phone number and an ID, hence the interest rates on them are high, as well as the fees.
