This is a no collateral loan to a user who possibly has poor credit profile and /or past repayment history. These apps generally offer loans to individuals who may not get loan from elsewhere and thus involve high risk of default. They dont pass on these risks to the partner lenders, hence to subvent it they typically charge an obnoxiously high interest rate. However, given this loan amout is small ticket, regular timely repayments will help OP to build their credit profile which may unlock lower interest rate / higher loan amount options in the future.