Credit through banks or through online cash loan provider services? Such questions are often asked by the public, especially those who intend to apply for credit. The emergence of these questions is actually a common thing because so far many people do not know what exactly is the strengths and weaknesses of each – each. Some people then choose to borrow cash online because they think that the process of applying for credit to the bank is too long-winded and complicated, not to mention the process takes a long time. However, some others prefer to take credit to the bank because it is considered more secure and comfortable. Then, which is actually more profitable?
To find out which is the best choice, then we must understand what are the advantages and disadvantages of each – each. Here is the analysis that can be used as a material consideration to determine which is most appropriate. Between online cash loans and banking. Of course this will add to your horizons and you can determine where you will make a loan of funds. So that there are no more doubts in mind, you should first know the advantages – advantages of both. We describe everything below.
Almost everyone knows what banks and credit products offer. In this case, in outline bank credit products offer several advantages, namely:
- Able to provide a very high credit limit, depending on the value of the collateral or collateral provided
- Providing very competitive credit interest because almost all banks are required to follow the interest rate determined by Bank Indonesia as a regulator
- Many bank options are available, from regional banks, national scale banks, people’s credit banks to Islamic banks that use the system in accordance with Islamic law which is usury free
- The customer or debtor is insured
- Credit tenure or term can be adjusted according to needs
The shortcomings of bank credit include:
- Terms and documents for applying for credit are quite a lot
- Must have an impressive credit history
- The approval process can take days to make it unsuitable for sudden or emergency needs
- Some credit products require the debtor to have a credit card
- Credit limit is far from the value of the collateral given
- Some loan products are subject to penalties for repayment before the deadline
Online Cash Loans
Although there are now a number of national banks that have launched loan products online, what is discussed here is a loan product from a non-bank company. So it’s very different from what is in your mind. This loan product is indeed mushrooming and fairly rising. Even so, it never hurts if you know what are the advantages and disadvantages.
Advantages of online cash loans:
- Terms and documents for applying for online cash loan loans are very easy
- The approval process can be done in one day or even just a few hours
- The submission process can be done at any time and without having to come directly to the creditor concerned
- No penalty is charged when repaying the loan before maturity
- Not asking for collateral or collateral from customers
- Funds can be used for various purposes, including for urgent or emergency needs
- Tenors are very flexible, ranging from 6 weeks to 36 months
- Some companies do not require customers to have a good credit history
By knowing and understanding what are the strengths of each option, you will be able to more easily choose which one suits your needs. One more thing that must always be remembered is, both applying for credit to banks and online cash loan providers, customers should continue to maintain discipline in paying installments. Of course, if examined closely, lending online is considered the most practical and hassle-free. Regarding the rules or conditions for withdrawing loan funds is almost the same as offline banking.