Windows to the World of Financial Services: Online Loans
The circle of companies that are ready to work in the financial market has become much wider.
16:43 27 August 2021
The history of financial services is rooted in antiquity - probably, they appeared simultaneously with financial-monetary relations. Despite millennia of development, the meaning of providing financial services has not changed, but the circle of companies that are ready to work in the financial market has become much wider. How to understand all the options offered and choose the best one?
Despite the different names and different marketing moves, the whole essence of financial services comes down, basically, to two operations:
A financial institution accepts money from a person for safekeeping and pays him interest for it. Such an operation is called depository;
A financial institution gives money to a person for his needs, and for this he must return the principal amount - the body and interest for using this amount. This type of transaction is called credit.
In the Middle Ages, moneylenders were engaged in such operations, then banks took over their functions. In connection with the development of digital operations, microfinance operations began to be actively organized around the world, which also began to engage in financial operations, competing with banks. But each type of financial organization has its own specifics.
Banks are quite serious enterprises that operate with larger amounts. On the one hand, this is their advantage. On the other hand, it is precisely with the seriousness and solidity of banks that their shortcomings are associated - very great inertia. Consideration of the issue of issuing a loan may take several working days, documents are accepted and funds are issued only during working hours on the territory of a bank branch after signing an official agreement. And the very transfer of money between countries, for example, through official channels, until recently, took up to three working days. Now the situation has improved slightly, but banks are still lagging behind microfinance organizations in terms of the speed of operations.
When banks stopped keeping pace with business development, more mobile microfinance organizations emerged. They operate on much smaller amounts, but they do it much faster. Their agility is also due to the fact that they are focused on only one of all banking operations - lending. But they do it quickly and reliably.
What types of loans do consumers most often request?
There are many types of loans, but not all of them can be provided by small organizations:
- Mortgage loans - issued by banks, because there are the largest amounts and complex paperwork secured by real estate;
- A loan for the purchase of a car against his own security - banks are also engaged in such types of lending;
- Credit cards - in order to obtain the right to issue credit cards, it is necessary to conclude an agreement with international operators of payment systems - microfinance organizations do this very rarely;
- Consumer loan - the type that is not very interesting for banks, but is the main activity of companies that issue online loans;
- Installment plan for consumer loans (vay tiền tiêu dùng trả góp) is also one of the types of consumer loans that you should apply for online;
- Other types of loans for small amounts - for education, medical treatment, etc. - companies that issue loans online usually do not require documents confirming the purpose of obtaining a loan.
Benefits of online loans
Millions of users around the world have already appreciated the advantages of working with such small organizations - despite the small amount issued, the total turnover of such companies is estimated at billions of dollars. Why has this service become so popular?
- Loan processing is carried out within 10-15 minutes;
- All documents can be submitted and filled out online, without a visit to the department;
- The withdrawal of money is made by transfer to the recipient's card a few minutes after the confirmation of the loan;
- Such companies work seven days a week, around the clock.
This service is very convenient when a small amount is urgently needed for a short time - on weekends, at night, on holidays.
Disadvantages of Loans Online
Of course, this service has its drawbacks. That is why they are not ready to completely replace banks. The main disadvantages include:
- Small amounts that can be issued as a loan;
- Short loan term, usually 1-6 months;
- Quite high percentages, which usually include all possible risks from online contracts.
Despite this, the popularity of such services is constantly growing - it is fast and convenient. There is no need to look for a bank branch, just go to the website and get a loan in a matter of minutes.
Should you use online financial services?
There are situations when an fast online loan (vay online nhanh) is the best and fastest way out of a situation when you urgently need money. This happens, and in this case, contacting microfinance organizations is an excellent option. Moreover, they always have quite a lot of competition, and you can find a fairly profitable offer. In any case, it is worth remembering that the loan will have to be repaid on time, and more will have to be repaid than it was taken. When submitting an application for a loan online, you should very carefully not only consider all the conditions for obtaining and repaying a loan, but also sensibly assess your own possibilities and prospects for repayment. Usually it is recommended that if you take a loan, then only for development. For example, to pay for courses that will help you take a higher-paying position, or to develop your own business. It makes sense to take on a profitable startup or investment only if the guaranteed profit exceeds the interest charged on the loan.
It is strictly forbidden to take out loans for online casino games, sports betting or lotteries. By the way, in some countries this is prohibited by law.
How to choose a reliable partner for online loans?
Another disadvantage of online loan companies is that they cannot be quickly verified. There are chances of getting to phishing sites that lure out personal and financial data. In order to avoid this, it is worth using simple rules:
- Use the services of only trusted companies;
- Read reviews on third-party sites;
- Carefully look in the address bar at the name of the site where the documents are being filled out;
- Provide only the information that is necessary to apply for a loan online;
- In case of suspicion, it is better to stop applying for an online loan, call back the call center of the company providing this service and clarify suspicious points.
If you take precautions and contact companies that have been leading the financial services market for many years, you will receive excellent service and affordable credit. But to receive it you should choose really reliable company, such as Oncredit.vn, that is one of the best in the country.
What to look for when applying for a loan?
There is a lot of competition in the financial services market. Therefore, before applying for an online loan, it is worth considering the main offers on the market. Why is it important? Many companies issue the first loan at a minimum interest rate, which will be very profitable. Others often hold all kinds of promotions with the opportunity to win valuable prizes only by applying for an online loan. There is still a very good opportunity to save money - very often, in honor of holidays or anniversaries, microfinance organizations distribute promotional codes for significant discounts on interest on loans. Therefore, before signing an agreement, it is worth considering all the possibilities and choosing the most profitable ones.
Online lending companies are developing quite rapidly, they are much more mobile and active compared to traditional banks. They pursue a fairly aggressive marketing policy, actively promoting themselves on social networks among the bulk of potential customers. Therefore, in the near future, we can expect further growth in the volume of lending issued in the online form. It is really convenient and fast, especially when money is urgently needed outside of working hours and there is no time to go to the bank and wait for its decision. However, when turning to microfinance organizations, it is important to remember about your own safety and carefully check counterparties.