You need to know the advantages and disadvantages of online loans before applying for a loan. Different from conventional loans, online loans can be submitted easily and quickly online through the platform or download the application first.
The online loan itself can only be processed online. You must submit an online electronic application form (Chinese or English version), supporting documents submitted by the company, and also a copy of the certification document that the applicant company has substantive business operations in Hong Kong. (Commercial contracts, office leases, etc.)
However, you must be careful in choosing an online fintech loan or bud fund. Choose a credible and trusted online loan fintech. They already have to have permission to avoid things that are not desirable. In addition, you also have to weigh the advantages and disadvantages of online loans before deciding to apply for an online loan. Check out the following review.
Advantages of Online Loans
There are many advantages that you will get when you make an online loan. Such as a practical process, easy conditions, and fast disbursement of funds. You will only get these three advantages for fintech online loans that are credible and have obtained permits
For more details, here is an explanation of the advantages of online loans.
1. Easy and Practical Submission
You don’t need to apply for a loan by visiting the office directly. Currently you can simply use a smartphone to apply for a loan. The application can be downloaded for free on the Play Store and you only need an internet connection to download and access it.
When applying for a loan, you simply meet the requirements and submit the documents requested by the lender online. On most platforms, there is no interview process that must come to the branch office and a site survey in order for your application to be accepted. Fintech will check the completeness of your requirements within a maximum of 2 x 24 hours before it is decided whether your application is accepted.
2. Funds can be withdrawn quickly
Online loans can be a solution for those who need funds in an urgent situation. This is because funds can be disbursed instantly in a short time. After your application is received, the funds will be directly transferred to the account.
So that the funds can be disbursed in a fast time, make sure you have fulfilled all the requirements and documents without missing a single one. So that the application is quickly approved and you can use the funds for urgent purposes.
3. Easy and Uncomplicated Requirements
The ease of applying for an online loan is also due to the simple conditions. You don’t need to have assets to use as collateral or collateral, and you don’t need a credit card because online loans only require personal files.
Disadvantages of Online Loans
Although there are a myriad of advantages, online loans are also not without drawbacks. The disadvantages of online loans are in the interest system, loan ceiling and repayment tenor. As a consideration before applying for a loan, consider the following disadvantages of online loans.
1. There is a Daily Interest System
Most online loans apply a daily interest system, which reaches 0.8% per day. This interest method will not be a burden for those who take a short tenor, but it will be the opposite for those who take a long tenor.
You need to do the calculations first so as not to cause the installments to swell to the point of burdening your finances. Moreover, the risk of being fined if you are late in paying the installments.
2. Limited Loan Ceiling
To minimize the risk when customers are unable to pay off installments, online fintech loans only provide a limited loan limit, which is only up to tens of millions. This may be quite difficult for those of you who need a loan in the tens of millions.
3. Shorter Repayment
You can choose the repayment tenor according to your ability. However, the maximum repayment tenor is shorter, which is a maximum of 6 months. Actually, this is enough to provide a return for you considering that there is daily interest that you have to pay in each installment, so that the choice of the right tenor can keep your finances in a healthy condition.
Those an explanation of the advantages and disadvantages of online loans that you should know. Hope it is useful.