What is the impact of high interest rates on online loans?

P2P online lending, or peer-to-peer lending, refers to direct lending between individuals through the Internet platform. It is a sub-category of the Internet finance (ITFIN) industry. In 20 12, the number of online lending platforms in China increased rapidly, with about 350 active platforms so far, and the total number reached 3,054 by the end of April 20 15.

In fact, it has been controversial since its birth: some people think that online loan application is very convenient, payment is fast, and loan repayment is very convenient; Some people think that the interest on online loans is too high, the term is too short, and the interest is high, which is unreasonable. There are even people who lend their lives because of the internet!

So, why did you choose online loan? What are the advantages and disadvantages of online lending?

Low application threshold

Generally, you need to apply online and verify some basic information to apply for a loan.

Fast loan speed

Considering the performance and influence, the online lending platform will not be as strict as the bank review process, so the lending speed will be faster.

The loan information of some online loans will not be included in the credit record.

Some online loan products don't check the credit information, and the loan information will not be recorded in the credit record, which means that the borrower's debt situation and overdue behavior will not be recorded in the credit record, which has certain benefits. However, these products will check third-party credit, such as sesame credit. Therefore, it is very necessary to repay on time and maintain a good credit.

Warm reminder

Although more and more people choose online loans, online loan products do have the advantages of direct online application and fast payment, but online loans also have some disadvantages that we can't ignore.

1, high loan cost.

Due to the low application threshold, small loan companies naturally bear relatively large loan risks. In the loan industry where risks are turned into profits, the interest charged will naturally be higher than that of banks. However, it is worth noting that the charging standards among small loan companies will also be different, and shopping around is still king for borrowers.

2. There are many loan scams.

In the mixed unsecured loan market, many criminals wearing the "coat" of small loan companies cheat borrowers who are in a hurry to use money. Generally speaking, when the lender asks the borrower to repay in advance in the name of deposit, handling fee and interest. Be careful of liars. Regular small loan companies will only start charging related fees after the loan is successful.

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