What are the hazards of peer-to-peer lending?

1. The rates of some online lending platforms are unclear, and the expressions such as handling fees, overdue fees and liquidated damages are hidden. This may firmly lock in the loan students. Once the repayment is overdue, college students are likely to be unable to bear the loss of funds, which will lead to the credit crisis of exceeding consumption.

2. Due to the low threshold of online loan installment consumption, it provides a platform for college students to spend in advance and luxury consumption. However, many college students are heavily in debt because of impulsive consumption, which brings trouble to their normal study.

3. Once the payment is overdue, it will affect the personal credit information of college students in the bank. Once you have a personal credit stain, whether you apply for a credit card or a loan in the future, you must pay more than others, and may even be rejected. In addition, once these small online lending companies change, there are also hidden dangers of revealing private information such as student ID cards and college student ID cards.

Extended data

Disadvantages of person-to-person loans

Unsecured, high interest rate, high risk

Compared with the traditional way of borrowing, peer-to-peer lending has no guarantee at all. Moreover, the central bank has repeatedly made it clear that the annual compound interest rate exceeds the bank interest rate by four times and is not protected by law. It also increases the high risk of online lending (generally 7 times or even higher than the bank interest rate).

2. Credit risk

The inherent capital of the online lending platform is small, so it cannot bear large guarantees. Once there is a large loan problem, it is difficult to solve it. In addition, some borrowers also make loans for the purpose of cheating, while some purposes of the founders of the loan platform are not simple, and cases of absconding with money occur frequently.

3. Lack of effective means of supervision

As peer-to-peer lending is a new financing method, the central bank and the China Banking Regulatory Commission have no clear laws and regulations to guide peer-to-peer lending. For online loans, the regulatory authorities are mainly neutral and do not violate the rules or recognize online loans. However, with the prevalence of peer-to-peer lending, it is believed that relevant measures will be formulated and implemented in time.