When there is an urgent need for funds, signature loan lending is often a financial solution. Signature loan lending is one of the same types of Lending Credit. Signature credit is one of the loan products that offer any signature loan facility you can lend, but usually, the value of the loan is not great. Only about $ 2 million to $ 10 million per person on one loan.
Online signature loans for bad credit: a short form, instant decision
Borrowing an online signature loan for bad credit is very helpful in times of need. Sometimes, when you need urgent funds but there are no savings left in your account, one of the alternatives to getting money is to sign for a loan.
Online loans are often pursued by those who need fast funds within a few hours as the process of disbursement takes only minutes and hours. In Indonesia, there are many online loans available. Most are provided by online lending apps and websites with the quick process of interest but with interest calculated daily. These lenders are of the opinion that they have a fast process to assist potential customers in need of funds.
The application process is very simple, you simply download the online loan application you choose, then fill in your personal data, and the last step is to apply for the loan according to the terms provided by each online loan.
Usually, online lenders will verify just by asking for proof of personal data. Most lenders do not do surveys, just by telephone. However, before you apply for a loan there are several risks you may face when applying for an online loan.
Borrowing Signature Loan: The Risk You Will Understand
Online loans are quite expensive as they have daily interest rates of up to 0.5% – 3%. For example when you borrow $ 1 million, then with a daily interest of 1% per day, you have to pay interest at $ 10 a day. In a month, you are burdened with flowers of 300 thousand. If you borrow for three months, then you will repay up to $ 9.9 million or 90% interest for three months.
Therefore before borrowing, you should first calculate your willingness to pay the principal and interest. We recommend that you look for a loan with no interest in choosing the cheapest loan. There is currently a low-interest rate loan from the bank in the range of 0.95% per month.
If the average loan you can borrow through Credit Lending Bank is up to $ 200 million, this is the case with online loans that can only lend up to millions to tens of millions. The tenor is short, about 30 days. That’s why online lenders dare to lend a lot of signature loans. The small size of this floor can only cover the small needs usually associated with secondary needs.
As with buying new gadgets, you may need to rethink them just to meet those secondary needs. The reason is, loan interest runs every day, unknowingly draining your wallet. Credit card usage with a 0% discount may be safer. While for those who don’t have a credit card, borrowing a small amount can still be done with relatives or friends.
Because the number of borrowers you can borrow is relatively small, the tenor provided is short, only about 30 days. Different from conventional Bank Credit Lendings that provide tenors of 1-3 years. The tenor of this online money lending provider may be very burdensome for those who are unable to raise funds quickly. Instead of being the only way to get an online loan, it adds to the problems. Therefore, if you are not sure you can pay off your debt in one month you should choose another type of loan.
Similar to Credit Lending loans, liquid direct online loans also impose penalties for outstanding lenders. However, the amount of penalties from online loans quickly melts more than conventional banks. As a result, this penalty is equivalent to daily interest until the value is accumulated.
Often these penalties are unknown to us from the beginning. On the other hand, if you are confident of choosing this loan you will have to worry about the ability to pay plus the possible penalties. However, unlike conventional banks that impose penalties on debtors who want to pay off their loans faster, online lending does not impose accelerated repayment penalties. So whenever you have the money you should pay off your debt immediately.