The online loan has become the most favorite choice for many people in this digital era. This can be proven by the proliferation of providers. Although there are so many online lenders out there, there are only a few of the best licensed Money Lender How do you know? Check the tips and tricks below first before you choose a service.
Along with the rapid advancement of technology and the smooth internet network all around the world, online loans have become one of the favorite types of loans in many circles. Just try to pay attention in the past few years, we can find dozens of companies that provide online loans.
Actually, this can also be a sign that the economic needs of the community are still not proportional to the income that we get so that we can’t help but be forced into debt when we need funds urgently or because there are important needs to pay immediately.
However, you need to know that it turns out that not all are safe and reliable because fraud cases often occur that can harm you. Therefore, if you want to choose the best online loan provider, first look at the tips and tricks below!
Have an Official Office
In addition to seeing whether the best service is registered with the country’s financial authority service, you also have to see if the company has an official office that you can track through your Google Maps. The existence of an official office is very important so that if there is an unwanted risk, you can claim by visiting the official office. That way, you can trust that the online loan service that you choose is not fake.
No Advance Requirements
Actually, there are easy tricks that can prove that the best online loan company you choose is safe and reliable, which is by seeing whether they ask for a down payment or not. If the online loan provider asks for some funds to smooth the loan disbursement, then surely they intend to deceive you because after all there is no service that requires a down payment.
First, always choose the best service that has been registered with the Financial Services Authority because companies that have been registered are monitored by the government so that they cannot act fraudulently or harm the borrower.
No Requesting Banking Data
Apart from not asking for a down payment as the main requirement for loan disbursement, a safe and reliable online loan provider never asks for your banking data. Remember, they usually only ask for account numbers, but not other banking data such as biological mother’s name, credit card numbers, etc. So always be vigilant if there are providers that ask for your banking data.
Because it is online, without face-to-face meetings, the clarity of processes, requirements, and costs has been crucial from the start. Transparency is the key.
How much interest should be paid? Loan terms and related fees are information that must be available on the loan website. Ideally, prospective customers can already see all the information easily and transparently on the website’s home page.
However, not a few online loan websites that are less clear include these things. The interest rates are unclear and the fees charged to borrowers are not transparent. Customers need to work harder to search the website to find this important information.
Ease of Requirements
Why borrow online if they ask difficult conditions and requirements?. Maybe that’s the reason why people glance at this type of loan. Convenience is the appeal of online loans compared to conventional loans. One of them is the completeness of documents. Because many people find it difficult to apply for credit to the bank due to not being able to meet the document requirements.
We once found one online loan that only asked for an ID card and photo as a document requirement. This is clearly a condition that almost anyone can fulfill.
However, we have also met one that requires quite a lot of documents, such as electricity bills and others. Not an easy requirement to fulfill. Thus, though it is easier compared to banks, not all of them offer easy conditions.
One of the advantages highlighted by online loans is the speed of disbursement. They claim faster than banks. However, in reality, we see that this speed varies between them.
First, there are promising decisions within 1 week, but not a few can disburse loans for less than 1 day. Second, this is rather tricky, the borrower must pay attention to the definition of the promise of speed. For borrowers, when loan approval and funds enter the account. That’s the most crucial thing. The problem is that not all online loans apply the same definition. Some say fast approval if all conditions are met and verification is done. There is also a time gap between agreement and disbursement.
Banks have a number of limitations in unsecured loan products. Take, for example, the minimum loan size is quite large, the minimum loan term is 6 months installments and if the repayment is accelerated, the penalty is fined.
Online loans offer flexibility that cannot be provided by banks. For instance, they can be lower than $1000. In fact, one of them gives credit of $100. The loan period can be daily. No need to be paid in installments. Expedited repayments are not subject to fines. When you are looking for a loan online, this flexibility can be a crucial consideration. Compare providers and see which one offers the best flexibility.
So, do you want to get an online loan? Perhaps, you can conduct research to find the right one for you.