Demand for loans increases, which is an opportunity for profiteers to "take action". And black credit - the "trap" that many people fall into. So what is the identifying feature, how to avoid it?
During the Covid-19 pandemic, financial difficulties have surrounded and "knocked" door-to-door, one by one. It can be said that this is a "golden" time, a fertile land, creating conditions for black credit to develop. What is black credit usury , how to avoid fraudulent black credit traps? Please refer to the article immediately.
Walls, street corners, power poles from urban to rural areas are flooded with advertisements with offers to support credit such as: simple unsecured loans, just need money, loan support Disbursement within the same day,...
Black credit loan procedures are quite simple, no collateral, no surcharges, quick receipt of money, etc. have attracted many people who need to borrow money. In particular, the subjects they target are poor, near-poor households, young people growing up in rural villages, unemployed people, people who need unexpected money, etc.
Black credit is an unorthodox activity. This is a form of loan sharking carried out by individuals or organizations beyond the control of the law.
Interest rates of black credit are often not regulated, most are set by individuals or lending institutions and are often very high, exceeding the provisions of current Vietnamese law (150%). .
We can easily see black credit loans everywhere with simple and concise advertisements such as: "No need to mortgage assets, no need to prove financial, quick procedures" ; or more simply like: "Just call the number xxx to have a day's money".
Despite being warned, many people still come to this form because of the fast disbursement time and simple procedure. Just through a phone call and face-to-face meeting, the borrower can own the money in hand without having to prepare complicated documents or financial proof.
So, how to know if the credit is black to avoid "trapping"? Please apply the recognition below.
- Advertising form
Usually black credit transactions are in the form of leaflets posted at power poles, intersections or signs at pawn shops. In contrast, financial companies often associate with reputable brands such as electronics stores and supermarkets to promote their lending services.
- Loan procedure
The black credit loan process is very simple and fast, usually disbursing 10-30 minutes. Customers only need to have a photo ID card or household registration book or a car document that they own and some other documents to be able to receive money easily.
- The contract is not in accordance with the law or there is no contract
Usually agreed by a simple contract, sometimes oral agreement, no accompanying documents.
- Exorbitant interest rates
The interest rate of the black credit loan contract is usually from 100-360%/year depending on the loan amount. This is a very high interest rate compared to current interest rates at commercial banks and financial companies. If you pay late, you will be subject to debt collection according to the law of Gypsies or the suppression of debt collection teams.
The lending interest rate of black credit is usually very high, from 100% - 300% , even up to 700%/year . These civil transactions are agreed upon by the parties themselves, not authenticated by law, without collateral.
If the borrower is unable to repay the loan or is late to pay the interest, the lenders will use many tricks to force the borrower and relatives to pay. From there arise illegal acts such as: rape, robbery, illegal arrest, intentional injury, destruction of property, ...
Not only appearing in rural areas, but also in industrial zones, black credit also develops very strongly, customers are workers working in industrial zones.
There are many other cases of black credit loans due to their inability to repay, which have been demanded by "gangsters" and foreclosed on debt by ways from swearing to arresting people, terrorizing even their relatives. debtor"…
It can be said that, with the core filtering in " black credit " activities, loan sharks always appear at the right time to solve the needs of those who need money.
In some cases, when knowing that the victim is in debt to others, these subjects appear with the creditor and suggest the victim borrow money from their company to settle the current debt, avoiding troublesome litigation.
As a last resort, the borrower had to accept this option to have money to repay the loan. So the debt of the old owner was transferred to the new owner with an extremely high interest rate.
On the other hand, black credit is often confused with unsecured loans because both types meet the immediate needs of consumers. However, unsecured loans are usually carried out by companies and financial institutions licensed by the state, so borrowers are protected by law. In the form of black credit , the borrower is completely unprotected.
The problem of black credit has significantly affected the reputation of financial companies operating in the field of unsecured loans . Because both of these forms of lending are fast, the procedure is simple , meeting the diverse needs of customers. However, the nature and way of handling loans of these two types of loans are completely different.
What makes customers feel more secure when looking for unsecured loans is that their loans are supervised by state management agencies, interest rates are open and transparent according to Vietnamese law. . And all benefits are clearly stated in the contract.
We can easily see the huge difference in these two types of loans through the following comparison table:
Table comparing the difference between unsecured loan and black credit
Black credit loan
Simple, fast, no mortgage or proof of income, no appraisal. Disbursement instantly or within hours.
According to the financial company's process, the loan application must be appraised before it can be disbursed.
Very high, depending on the lender, ranging from 100% - 360%/year.
According to state regulations, depends on the borrower's credit score.
Forms of debt payment and debt recovery
Cash or bank transfer. Often uses threats and personal attacks.
Cash or bank transfer. No threats to customers or personal attacks.
It can be said that in order to limit and repel black credit , credit institutions or banks need more flexible loan packages to support people and low-income people. Along with that, credit institutions need to diversify types of credit to serve people's life and consumption with simple and convenient procedures.
Understanding the difficulties in borrowing money of many people, CashBerry financial company is currently supporting the policy of fast online money lending . Just register your profile, take a photo of your ID/CCCD to verify that you can borrow up to 10 million VND.
This is a reputable, safe and secure 24/7 online lending service . Customers can fully take the initiative in the loan process. All information about the loan, interest rate as well as loan amount and term will be transparent on the contract. Customers can refuse if it feels unreasonable.
Above is general information about black credit so that customers can understand more and avoid falling into these organizations. Instead of choosing to borrow hot money at black credit , you can get a quick and safe loan at CashBerry company . Visit cashberry.vn for financial support if you need money urgently during the day!