The online loan has lately become so popular among people all around the world. They borrow money online due to the easy requirements. Also, the disbursement of funds is relatively very fast compared to a conventional loan. No wonder the emergence of this online loan platform becomes a breath of fresh air for those who need cash fast. However, you need to know whether to get a personal loan is a good idea. Let us find out all about the online loan and how to get it safely.
What is an online personal loan?
Along with the development of technology, many things can be done online, including borrowing money online. You just sit on your chair at home with an internet-connected cell phone, and then the loan will be processed within 1 x 24 hours.
Meanwhile, when you apply for a loan through banks, the requirements are fairly stringent than online loans. In addition, the disbursement of funds also takes days up to 14 working days.
Getting a loan at a bank is usually complicated and requires a long process. Borrowers are required to attach a variety of supporting documents, ranging from ID and Family Cards, Credit Cards, Home and Parent Telephone Numbers and relatives, house surveys, and others.
Of course, this is far different when compared to borrowing money online, where the requirements are very easy, that is, you only need to take a picture of yourself while holding your ID card, e-mail address, or social media account.
But behind all the convenience of borrowing online, there are consequences that you may pay. As an internet user, we know that all things about our data will be stored in an online server. So, if we do a digital transaction agreement, we inevitably give other parties the authority to access personal data based on applicable regulations.
How to borrow money online safely?
- Determine the purpose of borrow money online
What will you use the money for? Getting an online loan is not a bad idea as long as you need it. Somehow, when you borrow money either online or offline, you also have to return it and pay the interest. In addition, you also have to make sure that you have a job and have enough salary to repay the debt. You may be happy to get an online personal loan, but it can be a nightmare if you cannot repay it. Once you determine the purpose, then you can find the best online loan provider.
- Choose an Official Online Loan Application
Of course, the first thing you should pay attention to before getting an online loan is to understand this type of online loans. This means that you don’t just download an online loan application. Choose which online loan provider has been registered with the Financial Services Authority. Registered online loan companies will follow the procedures that apply, starting from the way of collection, the provisions of the large loan interest that should not be more than 30%, and others.
- Read some clients reviews
If you want to borrow money online check out Money Lender Open on Sunday, then you also have to read some reviews from previous clients. Perhaps, you have found an online loan provider, but you are not sure if it is safe and trustworthy. Well, you probably can read some reviews from their clients. If they say good comments about the service, then you can trust it too. If there are so many negative reviews, then you should not take it. Fortunately, there are so many online loan providers available to choose from, so you can compare them with one another.
- Make sure the company identity is clear
It will be better if find more information about the loan service profile. You can begin with the easiest thing like checking the office address, company management, and hours of operation. If you do not get it, you can be vigilant. Moreover, you also have to check the customer care service either phone number and social media account. If they do not provide a customer care, you should not take because it may be an illegal online loan service.
- Compare online Loan Interest to bank interest
An online personal loan commonly has a higher interest rate compared to the conventional bank interest rate. However, if it is too high, you may cancel the loan. For your information, It is only about 10% for most bank interest rate while an online personal loan can be only`12%. So, if it is more than 15%, then you must think twice. Keep in mind, you should not easily get tempted by the easy process of getting online loan, otherwise it will only get more complicated.
- 3. Choose Online Loans with Low Interest
Next, you can choose an online loan application that offers less interest than others. However low-interest rates are certainly more profitable, right? However, it is not easy to find an online load provider with low interest. You need to take your time to compare one online loan provider to other providers.
- Don’t borrow If the fund and interest are not transparent
If you want to get a personal loan online, you should know that there will be no face-to-face process to discuss the lending process. Thus, before you decide to borrow it, it is better to look for as much information about costs, interest and other important provisions. Otherwise, you will only get trapped and you must pay the highest interest rate.
- Understand the risks of arrears online loans
Pay attention to how the billing process is carried out. If the billing is unsuccessful and the customer remains in arrears, the last effort of the company is to report the outstanding credit obligations and status to the credit bureau. This means that if you have a bad record (in arrears) on credit bureaus, chances to apply for credit at another financial institution will be difficult because other financial institutions will see a bad record of your credit arrears.
In summary, is it safe to borrow money online? Well, we can say that it is quite safe to get an online loan as long as you choose a trustworthy and reliable online loan company or provider. An online loan is also relatively easy to get because you do not need to come to the office and it does not need a lot of requirements compared to a bank loan.