Online loan or loan applications are increasingly making it easier for people to get debt aka money loans. Enough selfies with ID cards, immediate liquid money in just a matter of hours.
Online loans constitute a credit facility of fintech lending companies. Online loans can be filed through the loan application. Before borrowing money on an online loan application, sebHis aik used to know his merits and demerits.
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Overflow of Online Loan Applications
1. The conditions are very easy
The application conditions on the online loan application are easy. Generally only prepare selfies with a clear ID, as well as fill out self-data, such as name, email address, and tele-numberpound.
Subsequent stay pending approval or verification of the online loan application. Not for many days, it can be a matter of minutes or hours at the earliest, funds can already be liquidated if disapproved.
2. The quick liquid money
Online lending is the most appropriate financing facility for those of you who are in urgent need of funds. Online loan disbursements are arguably flashy, in less than 24 hours.
It is different from banks whose process is very long. It will take days to get an answer as to whether your credit application is approved. Not to mention the water treatment process.
3. Can make business capital
Online loan funds you can use for various purposes. One is venture capital to pioneer business in pandemic times.
Small-business, yet promising. Online loan debt money is spun off for productive activities that generate. Profit proceeds are used to pay debts.
Lack of Online Loan Applications
1. High interest rate
Behind the ease of online lending, there is one that is a concern. That is, high interest rates. The daily rate was 0.05 percent to a maximum of 0.8 percent.
That means that a month is 1.5 percent to 24 percent. That's when fintech lending is legal. That is officially registered with the Financial Services Authority (OJK). If entangled in illegal lending is more severe.
The interest rate can reach 30 percent or more. That means the daily loan interest is about 1 percent. Instead of helping, instead of strangling customers. Therefore, don't let you be a victim of fintech lending bodong.
2. Limited ceiling, short tenor
Online lending at fintech lending generally offers limited ceiling or limit. At most millions of rupiahs alone with shorter tensors, 24 months max.
Unlike bank credit. Loan ceilings can reach hundreds of millions of rupiahs to billions of rupiahs Some are without guarantees, such as KTA (Credit Without Agreed), but others are also dengan collateral such as KMG (Multipurpose Credit).
3. Risk of debt default and default
Because online loan interest is high, the risk of default or credit default is very large. Especially for customers who are in financial difficulties.
As a result the payment of the debt was late. Overdue to days, or months. This led to the debt continuing to roll along its interest and overdue fines.
Not surprisingly, many customers initially borrow only one or two million, to tens or hundreds of millions of rupiahs. Then billed the debt collector.
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4. Trapped in illegal online loans
Since it's been a stampede, the customer is dark-eyed. Not looking first for information on which online loan applications are legal or registered in OJK, whichever is not.
Finally, ignore this. Customers then apply for loans online at fintech lending bodong. Whose interest can be double that of the authorized online loan application.
Therefore, preferably before borrowing, check the official online lending list on the OJK website. As much as money is needed, never borrow at illegal fintech lending if you don't want zincra.
5. Addiction to borrowing
Online loans with easy terms and methods of application are addictive to borrowing. Any need for money, even though it's for consumptive, definitely run into online loan applications.
Borrowing money on an online loan application became a habit. a bad habit followed by the wrong use of money. Such behavior may harm finansia'slmu.
A month's salary runs out to pay the debt. While for daily necessities, you are forced to pay for it from another debt filing. Your life will forever be not off the utan billg.
Consider Before Making a Decision
Borrowing money on an online loan application is indeed very tempting. It's easy, practical, and quick to liquidate.
But you need to remember the risks or consequences to bear. Ensure borrowing as needed and financial capabilities.
If it doesn't really need money, it's best to avoid borrowing money. Be it on an online loan application, a bank, or to a friend. This is where the importance of regulating finances should not perlu owe.