Private loans are a conscientious supplement to bank financial loans. After all, not everyone can successfully get a loan from a bank, so many people still choose private loans to solve their funding problems, which faces many risks. There are many companies in the market that are defaulting on loans. If you don't pay attention to identify them, you can easily be deceived.

1. Private loans Among private loans, many loan companies are informal and belong to private lending. A slightly more formal company will register a company. In fact, it does not cost much, but it is for illegal lending. Put on a legal veneer. The characteristic of these private loan companies is zero-threshold borrowing. As long as there is a loan demand, anyone can borrow money from these companies, but the interest will be very high. The main characteristics are high interest, short loan cycle, beheading interest, and violent collection. , overdue liquidated damages are very high, and most borrowers cannot afford to repay with compound interest, and then use violent collection methods to make the borrowers repay. For example, Xiao Li received a call from an online loan company and expressed his intention to get a loan. He went to a local store to sign a loan contract and borrowed 50,000 yuan. In the end, after deducting various expenses, he only got more than 30,000 yuan. Due to special reasons After failing to repay the loan in time, the debt eventually increased to 80,000 yuan. The matter was finally resolved by filing a lawsuit in court.

2. If an unqualified online loan company wants to apply for a loan, it must first check the website registration, information, business scope, etc. to see if the platform has formal business qualifications. If there is no formal business Please do not sign a contract with someone casually. It is easy to be tricked. Once you are trapped, you will easily be unable to get out. Various intimidation and threats will be used to force you to pay back the money. This kind of calling the police is of no use. You can only go to court to sue. It’s time-consuming, labor-intensive, and really troublesome.

3. Leather bag companies. Some online loan companies take advantage of borrowers’ lack of relevant knowledge. They don’t even have fixed assets, fixed business locations and fixed personnel. They can facilitate a loan with just a handbag. If you have subsequent problems, violent debt collection and calling the police will not be able to solve it. To sum up, the current Internet financial market is very chaotic, and various tricks may appear. In short, formal loans do not require advance payment of deposits or other fees, so everyone should pay attention to safety.