Money has become one thing that is needed for many people. Money can be a solution when people want to open a business, to develop a business that they have, to buy daily necessities or use it for emergency needs. It is this emergency need that sometimes people never expect to come so there is no emergency fund preparation that can be used.
However, as time goes by there are many conveniences that you can feel when you need emergency funds, namely by using an online loan application. With this online loan application, it is easier for many people to apply for loan funds more easily and quickly, but this ease is sometimes used by some individuals to commit fraud and such.
Therefore, before using the convenience of online loans you must first understand the 5 risks involved in online loan applications.
Things to Look Out For in an Online Loan Application
High Interest Rates
Usually some online loan platforms apply at relatively high interest rate compared to the specified interest rate. Therefore, the high risk is due to the ease of the requirements and the fast approval process. However, if the customer understands and can make calculations at the beginning of the loan agreement, it should not be a problem.
The problem is that most of these prospective borrowers immediately apply for loans without thinking about the risks in the future, without doing calculations then making late payments and finally confusion in returning the loans.
Therefore, the most important thing for prospective borrowers is knowing the interest rates of the proposed loan and the conditions that exist in the loan application.
Usually when downloading an application on your personal cellphone, of course there is agreement for the downloader regarding the data that will be used by the application developer. This is what is sometimes used by unscrupulous individuals and make your personal data finally exposed.
Actually it is not entirely wrong if indeed the data is used for credit applications that have also been approved by you. A trusted online loan application will also certainly use this personal data for the right purposes not to be used for other purposes.
The most important thing is that the prospective customer understands and understands that he has given approval for the use and access of personal data for the purposes of applying for loans not for other needs.
This is not merely fast and not always long in the approval process. It depends on how many loans are filed on the platform, some online loans that we often know will certainly offer a promise to disburse funds in less than 24 hours. It is indeed not impossible, but sometimes the mistake is approval that ‘hang’ is sometimes complained of potential borrowers. The intention is that the submission submitted by the prospective borrower is accepted or not.
These conditions need to be considered and understood by prospective borrowers when applying for loans online.
Billing Administration Fee
This is also something that is often forgotten by prospective borrowers. Remember! When you are in arrears, the risk is not only facing the collector, but there are also late payment fees. This risk can be reduced by ensuring that online payment access is good enough and providing more payment access is easier.
One thing to remember is that the amount of this fee is quite large when compared to the loan ceiling. The problem is that the provisions regarding the fees that need to be paid if the prospective borrower is later in arrears, are not clearly stated on the website on some existing online loans. However, there are also some online loan applications that clearly display the conditions.
The most important thing is that prospective borrowers must understand clearly all credit agreements carefully so that misunderstandings occur that cause you to lose money eventually.
Online Loan Application Not Registered Financial Services Authority (OJK)
Many application services offer online loans quickly and easily. However, of the many existing services, not many have pocketed a permit from the Financial Services Authority (OJK). Well, because of this permission from OJK is very important considering applications that already have licenses from financial institutions such as OJK certainly make these applications have more credibility and are more secure with the supervision of institutions such as OJK.
Then, how to see which online loan applications already have licenses from the Financial Services Authority? You can see it through the OJK website directly, because currently there are only 25 companies that are licensed and registered with OJK. One of the 25 companies is Lite Lenders Credit.
Lite Lenders Credit is a Lending Indonesia Peer-to-Peer (P2P) platform that connects SMEs who need loans to develop their business with a group of lenders to fund these loans. Lite Lenders Credit also provides access to business capital loans to SMEs with competitive interest rates and flexibility in loan tenors, payment models and collateral participation. Not only that, the Lite Lenders Credit also provides an opportunity for prospective lenders to obtain attractive returns in accordance with existing risks.