5 Things to Look For Before Applying for a Loan in an Online Loan Application

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

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.

 

Personal data

loan data

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.

 

Approval Process

loan Approval Process

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

credit loans

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)

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.

The grouping of credits in 5 questions

The grouping of credits often challenges … Between television advertisements, the reality on the ground and that of the profession, many questions often arise among our customers. We will answer the 5 most common questions.

 

Why carry out a grouping of credits?

credit loans

We are all looking for controlled budget management. But when we have projects in mind, we are all inclined to take out loans. Grouping them into a single monthly payment allows you to:

  • Reduce your monthly payments rather than accumulating them
  • Include your current loans (real estate, consumption…) and also your personal debts
  • Invest or finance new projects (purchase of real estate, children’s studies, preparing for retirement, etc.)
  • Reassure your banker about the solutions you adopt to better manage your budget

Quick to set up, credit consolidation offers you a simple and effective solution to give new impetus to your budget.

 

What are the steps to take for a loan consolidation?

The first thing to do is to clearly present your situation and clearly express your needs (Will the grouping be used to improve your cash flow and / or to finance new projects?).

Then, you must provide all the administrative documents necessary for the study of your file.

And that’s all! It is up to your broker to question the various banking partners to meet your needs and find you a suitable solution.

Practical information:

You do not have to change banks during a credit consolidation.

 

Do I have to put several brokers into competition?

credit loans

There are only 7 banks specializing in credit consolidation. They all work with different brokers.

You are very likely to have your file deposited at the same banks at the same time and only the first file deposited counts. So multiplying contacts with several brokers will not help.

Practical information:

Check that your broker is properly mandated by these 7 banks to offer you all the existing solutions

 

Consolidate its credit, how much does it cost?

All people with so-called “stable” incomes (permanent contracts, pensions, etc.), of all ages, whether or not they are owners (remove files from French banks), are eligible for credit consolidation.

 

Who is eligible for a loan consolidation?

Consolidate its credit, how much does it cost?

All people, of all ages, owners or not, including those registered with the Banque de France, are eligible for credit consolidation.

Credit consolidation is a simple solution to reduce your monthly loan payments and finance new projects. Any more questions?

Real estate credit: bank criteria

Is there a possibility of being an owner? borrow how much? will the credit application be accepted? When we decide to start buying apartments in Bayonne, there are many questions that arise. Above all, the amount of your home loan depends on your income and your personal contribution. These are the two criteria that will determine the estimate of the amount you can claim. Lending institutions pay a keen interest in the debt ratio of their customers, which must not exceed 33% of their income. Normally this is the case, but as soon as the buyer has comfortable income, the banker, taking into account the “remaining to live” will increase the debt ratio.

 

How much can we apply for?

loan apply for?

Each rule has its exception. Regarding the 33% rule, households with substantial resources will escape the fateful threshold of 33%. Banking institutions are integrating another parameter into their calculation rules: “the rest to live”. It is defined by the amount that remains in the household, when the monthly mortgage loan has been paid. This remainder must be sufficient to cover the expenses of daily life (food, clothing, etc.). Also, in the event that you have considerable income, the bank can possibly grant a more substantial mortgage, in spite of raising your debt ratio to 40 or 45%.

 

Personal contribution

Theoretically, having sufficient personal input is frequently the cornerstone of successful funding. Personal contribution is a sum of your own and available to you before borrowing. The larger this contribution, the better the conditions agreed by the bank.

 

Funding

online loan

To obtain a mortgage, it is best to first contact your bank. Indeed, she knows you better. However, it is not absolutely certain that she will offer you the best product. Checking other offers at other lender establishments may be wise. Do not hesitate to compare and let the competition between banks play. Your bank can align itself with the proposals of its colleagues, or you opt for the offer of another lender more advantageous for you. You can also ask a broker who will present your file to the various banking establishments that work with him. You can make sure you have the best rate and you will escape the numerous steps of banks.

 

Bank administration fees

In the range of 600 and 1000 dollars, the administrative costs represent approximately 1% of the borrowed capital. Its administrative fees differ from one bank to another, the rates are not regulated. As a result, they are therefore negotiable. Try to get a discount especially if you find that the frauds offered by the other bank are cheaper.