Advantages and Disadvantages of Online Loans, Must Know

You need to know the advantages and disadvantages of online loans before applying for a loan. Different from conventional loans, online loans can be submitted easily and quickly online through the platform or download the application first.

The online loan itself can only be processed online . You must download and install the application on your smartphone and submit a photo of your ID card, selfie photo with your ID card, and submit several other supporting documents. Usually the funds will be disbursed within 2 x 24 hours if the application has been approved.

However, you must be careful in choosing an online fintech loan . Choose a credible and trusted online loan fintech . They already have to get permission from the OJK so that you avoid things that are not desirable. In addition, you also have to weigh the advantages and disadvantages of online loans before deciding to apply for an online loan . Check out the following review.

Advantages of Online Loans

There are many advantages that you will get when you make an online loan . Such as a practical process, easy conditions, and fast disbursement of funds. You will only get these three advantages for fintech online loans that are credible and have obtained permission from the OJK. For more details, here is an explanation of the advantages of online loans.

1. Easy and Practical Submission

You don't need to apply for a loan by visiting the office directly. Currently you can simply use a smartphone to apply for a loan. The application can be downloaded for free on the Play Store and you only need an internet connection to download and access it.

When applying for a loan, you simply meet the requirements and submit the documents requested by the lender online. On most platforms, there is no interview process required to come to the branch office and a site survey in order for your application to be accepted. Fintech  will check the completeness of your requirements within a maximum of 2 x 24 hours before it is decided whether your application is accepted.

2. Funds can be withdrawn quickly

Online loans can be a solution for those who need funds in an urgent situation. This is because funds can be disbursed instantly in a short time. After your application is received, the funds will be directly transferred to the account.

So so that the funds can loanplususa.com be disbursed in a fast time, make sure you have fulfilled all the requirements and documents without missing a single one. So that the application is quickly approved and you can use the funds for urgent purposes.

3. Easy and Uncomplicated Requirements

The ease of applying for an online loan is also due to the simple conditions. You don't need to have assets to use as collateral or collateral, and you don't need a credit card because online loans only require personal files including ID cards, NPWP and salary slips.

Disadvantages of Online Loans

While there are a myriad of advantages, online loans also do not escape the disadvantages. Lack of online loans is found in the interest system, loan ceiling as well as repayment tenor. As a consideration before applying for a loan, consider the following online loan shortcomings .

1. There is a Daily Flower System

Most online loans apply a daily interest system, which reaches 0.8% per day. This interest method will not be a burden for those who take a short tenor, but it will be the opposite for those who take a long tenor.

You need to do the calculations first so as not to cause the installments to swell to the point of burdening your finances. Moreover, the risk of being fined if you are late in paying the installments.

2. Limited Loan Ceiling

To minimize the risk when customers are unable to pay off installments, online fintech loans only provide a limited loan limit, which is only up to tens of millions. This may be quite difficult for those of you who need a loan in the tens of millions.

3. Shorter Repayment Tenor

You can choose the repayment tenor according to your ability. However, the maximum repayment tenor is shorter, which is a maximum of 6 months. Actually, this is enough to provide a return for you considering that there is daily interest that you have to pay in each installment, so that the choice of the right tenor can keep your finances in a healthy condition.