When the necessities of life are getting more difficult and you also need money to make ends meet, then the only way is to borrow money. Where can you get the money? Getting a loan is not fun because you also have to pay off every month. So, what do you do when your relative asks to borrow money? You can borrow money from a bank. Continue reading below and know everything about online loans or personal loans, including their benefits and losses.
The Advantages of Online Loan
- Fast Process, Save Time
The presence of technology is supposed to facilitate all kinds of matters, including the matter of this loan. The main advantage of online loans is that you don’t need to make time to go to the bank. You can apply for a loan online between breaks or while doing other activities. Everything can be done only by using a smartphone or laptop, without having to go out of your house.
Still, doubt it? You can actually find so many online loan providers. The registration is very easy and hassle-free, all you have to do is provide your ID card and some other needed documents. The process is only within one up to few working hours . you want to get a fast online loan, personal loan is the best choice.
- Can keep cash flow more organized
You can count on an online loan when you have special or urgent needs such as attending a friend’s wedding outside the city or having to attend a seminar outside the city. The cost of this trip is easily tricked by using an online loan so as not to sacrifice the monthly budget planned. This convenience comes because you have a variety of payment tenor and low installment fees from online credit.
- A platform that can be trusted and recorded by the authorities
To be able to provide services in the form of online loans, online loan platforms have passed a series of tests and were finally given permission by the authorities. Also, they also provide guarantees that personal data will remain protected and kept confidential. So, you do not have to worry about your personal data that is stored online. Everything will be safe and secured. But, it all depends on the loan provider. You have to choose a trusted online loan company for this matter.
- Meet your urgent financial necessity
Borrowing money from a bank is not a good idea if you need fast money. If you want to get an urgent loan, you have to count on an online lender. This is one advantage of an online loan company to help people with financial issues despite the fact that they cannot borrow too much money. Somehow, you can only borrow money between $100 up to $3000, but it also depends on the company’s policy.
- You will get Credit Simulation
For those of you who want to apply for a loan, you must know in advance how much interest and simulation installment list. In an online financial comparison service company, you will be given a complete credit simulation from various credit categories. It is intended that you can find out transparently and will not regret it in the future. So, you don’t need to bother to calculate using a calculator.
- Everything is handled by the expert
Still hesitant to apply for a loan online? Take it easy, because everything will be taken care of by the expert. Apart from that, they will also protect your personal information. By making loans online, your financial problems will be immediately handled by the right party. Of course, in a short period of time, so that all forms of the process become more effective.
- It is more practical compared to bank loan
If you apply for a loan offline, it is not certain that at one time the process of the loan can be successful. One of the things that makes a loan unacceptable at one time is the lack of conditions attached so that making a loan application takes a long time and also takes time and effort. You also do not need to struggle with a thick pile of documents that you have to collect at the loan location. Even for those of you who have a busy schedule, you will not be disturbed by this online lending process because you do not need to leave your busy schedule right away.
Disadvantages of Online Loan
- Small credit limit
The first drawback is the small loan limit. If you want to use it as a venture capital loan without collateral, this is not suitable for you because the limit is not as large as using collateral.
- Short tenors
When compared to using collateral, the tenor of an unsecured loan is shorter. This will cause the debt repayment process to be shorter so that you don’t have much time to pay off.
- Interest is quite high
Even without collateral, the interest you have to bear is quite high when compared to those who use collateral. The reason is that there are no valuable assets that can be used as a substitute if you cannot pay the debt or the loan repayments.
- Expensive installments
Short tenures and high-interest rates certainly make the installments that you have to bear every month are also high. These large installments can make it difficult for you to make payments.
- Have a credit card
The next shortage of cash loans without using collateral is that you must have a credit card. This is what causes many to fail when applying for the loan.
- Easily blacklisted
The last drawback is that you will easily get into the blacklist or blacklisted by the Association of Government Financing Companies. It may occur if a civil lawsuit in court occurs to you. This lawsuit occurs if your loan repayments are bad or you cannot repay.