When applying for an online loan, there is one thing that you need to do first – to install an installment calculation. How? Let’s check out the easy way below!
In this sophisticated era, everything we can do online, from shopping, paying bills, to lending. There is currently one called online fund lending which is one of the types of loans that are being applied online. This type of loan is being widely discussed by the public as it is of great interest.
Advantages and disadvantages
Exactly what is the reason behind the popularity of this online fundraiser? Let’s see firsthand what the advantages and disadvantages it has!
1. Easy process
The advantage of an online loan is that it’s much easier than an offline loan that requires you to come to the nearest bank branch to apply for a loan. Just by using gadgets and the internet network, applying for online loans can be done right away. That way, you can save more time and energy as the submission process can be done anywhere and anytime.
2. Liquid Funds in Days
One of the main reasons some people apply for online loan lending is that it 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.
3. Necessary Requirements
The terms of this online fundraising requirement are also sloppy as they basically want to provide a loan that can be easily applied for 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, tax slip or income statement, and savings account. With requirements that are flexible and easy to fill, anyone can apply for an online loan.
4. Can be Used for Any Need
Unlike other types of home loans (mortgages) that are solely for home buying, KKB (Motor Vehicle Credit) dedicated to buying motor vehicles, or KUR (People’s Business Credit) dedicated to venture capital, online funds can be used for whatever 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.
5. Daily Flower System
Unlike bank loans provided by banks that implement a monthly interest rate system, online fund lending uses the daily interest rate calculation 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.
6. Extra Large Loan Offer
Since this loan can be disbursed within 1-3 business days, the loan ceiling given is not too large. Unlike unsecured loans that offer up to $ 50 million in loan plans, online funds can only offer you up to $ 20 million in loans. 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.
7. Short Tenor Period
A not-so-large loan ceiling also affects the tenor of the term provided by online fund lending. 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 loan online, you also take into account the tenor of the loan and adjust it to the ability to pay the installment
Terms in Online Loan Simulation
It is a financial institution that lends a large sum of money through the credit system to the public Examples of financial institutions that are lenders are banks, pawnshops, and fintech companies.
A cash lender to a financial institution with a credit rating over a period of time.
- Loan Plans
A loan plan is the amount of money the bank gives you. The amount varies depending on the provider, but typically ranges from $ 1 million to $ 20 million.
- Tenor period
Tenor is the term of the loan provided by bank. This tenor election is very influential on the amount of installment you have to pay later. So consider carefully when choosing a tenor.
- Interest rate
This is the amount of interest to be paid each month along with the installment or installment of funds. In online fund lending, the most widely used rates are flat rates and floating rates. The flat interest rate is a flat rate where the interest rate and installment remain the same so that each month the installment payment amount remains constant until the end of the tenor period. According floating interest rates are different per month depending on the movement of interest rates on the market.
- The main installment
The principal installment is a compulsory monthly installment. The main installment nomination is obtained from dividing the loan ceiling by the tenor taken.
- Installment Installment
The installment installment is different from the principal installment because the installment installment is a combination of the principal installment and interest paid on a monthly basis.
Apply For Online Loans
Keep in mind that when applying for an online loan, you need to apply as much as possible to avoid overstating your financial ability so that the debt will not accumulate in the future and also that the installment can be paid off smoothly. Congratulations on applying for an online loan.