Why dont people just get a loan from licensed moneylenders?

Apart from the high interest rates, there has been an increase in the number of reports of unlicensed moneylenders attempting to pass off as licensed moneylenders. If so, there is a risk of harassment (there are even moneylenders using food delivery services to harass individuals now!). That might be something that individuals might unintentionally be embroiled in.

Most individuals should probably also look into alternatives like financial assistance schemes offered by government agencies before proceeding with loans from moneylenders, which have the potential of snowballing.

4% interest rate per month.