Despite its popularity in the public eye, liquid direct online lending has the advantages and disadvantages you need to know. In order to understand it properly, find out more here!
When the need for funds is urgent, liquid direct online lending is available to help people from big to small cities. As the name implies, loans online direct liquid type of loan is done online, whether it’s through a website or application that can be downloaded at PlayStore. Liquid direct online loans are provided or provided by fintech companies, whether they are market aggregator or peer to peer lending.
The existence of online lending in Indonesia has begun to worsen since the existence of the internet has become more popular among the public since the 2010s. Until now there are dozens of more sites offering online loans FinTech direct liquid. The growth of fintech sites in Indonesia has not diminished from the height of public interest in liquid direct lending which offers a variety of attractive offers. So it’s no surprise that the existence of a liquid online loan is no longer a foreign matter in the eyes of the public.
Advantages of Liquid Direct Lending Online
For those who are unfamiliar with liquid loans online, you might want to know what the advantages of this type of loan are so that you can understand why people choose online money loans. Let’s see it together!
The advantage of liquid direct online lending is that it is much easier than an offline loan which requires you to come to the nearest bank branch first to apply for a loan.
Just by using gadgets and internet networks, applying for a direct online loan can be done right away. That way, you can save more time and energy as the submission process can be done anywhere and anytime.
Liquid Funds in Days
One of the main reasons some people apply for a direct online loan is because the loan funds can be liquid within a period of only 1-3 business days. If you’ve already applied for a loan, the process can even take just a matter of hours. So when you are in a state of desperation and need a sudden amount of money, a direct cash loan can be an advantage. Why is the fundraising process so fast?
This is because there is no guarantee given that there is no need for the asset valuation process first. Plus, all data is digitally provided so it can be processed immediately. It is different if you apply for a loan offline by coming directly to your bank as the data provided is physical data and must be transferred to digital for processing.
The requirements of the documents required by these liquid direct online loans are also not sluggish as they basically want to provide loans that can be easily made by anyone. Most of the terms provided by a direct online lender provider include ownership of a National ID (Resident Card), a Personal Identification Number, a tax slip or income statement, and savings account. With requirements that are flexible and easy to fill, anyone can apply online.
Can be Used for Any Need
Unlike other types of home loans (mortgages) that are exclusively for home buying, KKB (Motor Vehicle Credit) dedicated to buying motor vehicles, or KUR (People’s Business Credit) dedicated to venture capital, liquid direct online loans can is used for any purpose. You can use it for home renovations, educational expenses, hospitalization costs, and even marriage capital.
But remember, money lending is not recommended for paying off credit card debt, prepayment for a vehicle or home, and for consumer purposes such as shopping.
Liquidity Online Loan Lack
Every financial and banking product must have a shortage, with the exception of liquid direct online lending. So be aware of the shortcomings of cash loans first so that you can consider them carefully before applying for a loan.
The Daily Flower
Unlike bank loans with no credit provided by banks that implement a monthly interest rate system, online lending is liquid using a daily interest rate system. It is true that if we take a short tenor then the flowers do not feel very good, but if the tenor is taken long enough, the interest charged will be quite heavy.
Therefore, before applying for a loan, it is advisable that you do some calculations first so that you can determine the difference in interest due to short and long tenure.
Loan Offer Not Too Large
Since direct online lending can be liquid within 1-3 business days, the lending platform is not too large. Unlike unsecured loans that offer up to $ 50 million in a loan, a liquid loan online can only give you a loan of up to $ 20-30 million. But actually this, not a very large loan plaque can be an advantage because for unsecured credit, the minimum loan requirement is $ 5 million so those who need funds under $ 5 million will not be able to apply for a loan. In contrast to a liquid direct online loan that holds at least a $ 1 million loan.
Short Tenor Period
A not-so-large loan ceiling also affects the tenor of the term given by the liquidity of online loans. Typically tenor offers range from 10 days to 180 days. The longer the tenor period you take, the greater the installment interest must be paid. So it is best to take a liquid loan online immediately, you also take into account the tenor of the deduction and adjust it with the ability to pay the installment.
Not All Loans Live Loan Online
The shortage of liquid lenders online lately is worth noting because there are many liquid lenders online lenders that are affordable but not all reliable and have high credibility. We rarely hear of cases of fraudulent loan fraud in various media. Online lending is extremely prone to fraud, so when it comes to getting a loan, the first thing you need to look at is whether the lender is registered with the OJK (Financial Services Authority). With direct online loan providers registered in the FSA liquid, then it means FinTech companies supervised by the FSA so that it is safe and reliable.
Think carefully and do some calculations
Now you know what the advantages and disadvantages of having a direct online loan are. So before applying, first think carefully about how much you will borrow and what tenor you will choose. It’s best if you do a simulation first. By doing simulations, you know how much a month-to-month installment you need to pay in order to match your monthly repayment ability.