In daily life, it is inevitable that some people will be short of money. In addition to bank loans, many people will look for private loans, so they are likely to encounter usury. So what is usury? Don't borrow these kinds of loans, commonly known as usury. Let's have a look.

Which loans are usurious?

1, big ear hole

The interest rate is very high. According to the interest, you may only be able to borrow three or five hundred. A few months later, the total amount to be repaid may reach tens of thousands of yuan, which the average person can't afford, followed by violent collection.

Step 2 scroll around

As the name implies, this kind of loan has a fixed loan term, and the monthly interest is basically 3-5 cents. If the loan term is exceeded, the interest will be doubled and credited to the next principal, which will accumulate over time and keep rolling.

Step 3 rest the lamb

This way of borrowing is to borrow one and return two, that is to say, how much money to borrow will be doubled in the second year. For example, you borrowed 65,438+00,000 yuan at the beginning of the year and have to pay back 20,000 yuan at the end of the year.

Step 4 sit on the ground and smoke

This kind of borrowing method may be common in some non-compliant platforms. The fixed loan period is one month, and a part of the loan amount will be deducted when borrowing. For example, if you want to borrow 10000 yuan, you can only get 9000 yuan, and pay interest according to the principal of 10000 yuan after maturity.

Which loan methods are more formal?

1, bank loan

There are bank outlets all over the country. If you go directly to the bank, there will be a special staff to guide you to borrow money. This process is convenient, safe and formal.

2. Consumer finance companies

Because of the participation of banks and the supervision of the China Banking Regulatory Commission, such institutions are much more formal than usury.