Standing loans are increasingly popular, chosen by many people because of their fast disbursement time and easy loan conditions. However, this is considered a form of borrowing with potential risks.
In fact, standing loan is a variation of the form of consumer loan in installments deployed by unorthodox lending organizations and individuals. Customers can borrow money in the form of a mortgage or a mortgage.
So, in addition to the inherent advantages, what are the potential risks of standing loans? Follow the information below for details.
Standing loan is a form of loan where each payment period you only need to pay interest according to the agreement without paying the principal. At the final closing period, you proceed to pay the final interest and principal amount borrowed.
Many people often confuse standing loans with installment loans. However, these are two different types of loans. Specifically:
● Installment loan: is to pay both interest and principal at the same time on a monthly or quarterly basis. You can end the contract at any time if you have the conditions to pay off the debt.
● Borrowing money standing: is to pay interest first, the principal remains the same until it is due. At this time, you will pay both principal and interest for the last time. Paying both principal and interest on time as agreed, you can end the contract. In case you want to end the contract early, you will have to pay a rather high penalty fee.
In fact, standing loan is a form of standing loan. Therefore, the loan conditions are quite simple, not as cumbersome as when applying for a bank unsecured loan, specifically as follows:
● Be a citizen of Vietnam
● Age 18 - 60
● Have ID card / CCCD or household book
● Having a car hatch is an advantage
● Proof of work, ability to repay: Salary sheet/ labor contract
● Mortgage documents (if any)
● Other valuable papers (if any)
As can be seen, the form of standing money lending has a much higher interest rate than unsecured loans from banks or financial companies. So why, many customers still choose to borrow?
● Firstly, the hot money loan has a rather flexible form of interest payment. Depending on the agreement of the lender and the borrower, interest can be paid daily, weekly, monthly, etc.
● Second, the form of standing loan is suitable for the group of customers who need urgent capital, in a short time because of the simple application, and quickly disbursed.
● Third, when borrowing money for consumption by standing contribution, borrowers can pay flexibly, directly or transfer via internet banking. Borrower's information is also secure in case of full payment.
● Finally, most of the money lenders in Ho Chi Minh City or other big cities are private, so they accept even customers with bad debts at banks, just need to pay interest in full.
● High and flexible loan limit.
● Simple quick loan application.
● Support disbursement within the day.
● No proof of income or collateral is required.
● Confidentiality of borrower information.
● Standing loans have higher interest rates than other forms of loans because the loan application is too simple and there are many risks that lenders may face.
● Standing money lenders are usually private, so there is no legality in the loan agreement.
● Standing loans often apply very high early repayment fees, making it difficult for borrowers to pay off early.
● Standing loan contracts are usually handwritten, not certified by the government, so they have no legal value.
Standing loan interest rates are usually not fixed but will be changed depending on the loan package selected by the customer. The formula for calculating loan interest is as follows:
Interest rate = Loan amount x % interest rate
Example: Borrow 10 million dong for 1 week and the daily interest rate is 1%/day
=> The amount of interest paid per day is 10,000,000 x 1% = 100,000 VND/day.
At first glance, it can be seen that the form of standing loan is quite convenient and easy, with bad debt, you can still apply for a loan and receive money. However, for that reason, standing loans is really an unsafe form of borrowing, with many potential risks.
Because interest rates are extremely high. If you don't make your payments on time, you may have your mortgage taken over. In a worse case, you will be used by black credit institutions with many debt collection methods, causing psychological pressure, affecting your spirit and work.
Therefore, if you want a fast and safe consumer loan, you should choose another form of loan, and at the same time carefully study the loan address.
If you are worried about the risks and do not want to borrow money standing, then a quick online loan at CashBerry will be a safe and effective financial solution for you.
Online cash loans are a form of unsecured loans that do not need a guarantor or collateral. Cash loan through the application is an online loan that is registered 100% via the internet by downloading and filling in the information at the financial institution's application. Just need an ID card or a citizen's identity card, you can get a loan.
Steps to apply for a loan online:
● Step 1: Download the app or visit the financial institution website
● Step 2: Fill in the necessary information to make an application
* * Note: For fast, high limit browsing, you need to fill in your personal information completely and accurately.
● Step 3: Wait for appraisal and approval
* * Note: After registering the application, the appraisal department will contact you to confirm loan information, set a specific limit and interest rate.
● Step 4: Receive the disbursed amount if your application is approved
● Step 5: Pay via internet banking or e-wallet
* Online cash loan will be the most effective option if you need to borrow less than 10 million VND, short term and cannot prove income.
In today's lending financial market, CashBerry is the leading online cash loan financial consulting organization with the CashBerry application applied with outstanding modern technology to bring absolute advantages to users, including including:
● Easy to understand interface, easy to use, easy to register
● The registration steps are designed to be simple, helping you to register in just 5 minutes
● Quick review and disbursement time for you to receive money within the day
● Just ID card, no need to prove income or provide payroll.
It's time for you to hold your phone in hand to download and install CashBerry right away by searching by name CashBerry on CH Play or visiting cashberry.vn to register. No need to borrow money because now you can borrow money online with CashBerry: faster - easier - safer.