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Information disclosure

Second, is it risky to borrow money online?

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First, the risk of online lending.

(1) The virtual nature of online transactions makes it impossible to authenticate the credit status of both borrowers and borrowers, which is prone to fraud and default.

(2) A lot of lender information published on the Internet platform is in the name of loan companies and financing companies. In fact, financial institutions must be approved by the state to engage in financial services such as credit financing. Those who engage in financial activities without authorization will often be investigated for legal responsibilities such as illegal fund-raising, illegal absorption of public deposits, and disruption of financial management order.

(3) If loans are issued on behalf of the network platform, then if the network platform neglects self-discipline, or the internal control procedures fail, or are used by others, there may be cases of fabricating loan information and illegally raising funds.

Second, the shortcomings of online lending

(1) The interest of online loans sometimes far exceeds the stipulated interest rate, and once the economy occurs, the lender cannot safeguard this part of the interests.

(2) Due to the lack of bank credit system, overdue payments often occur.

(3) Some online loans often have bad debts, and some even have economic suspicions. Besides, peer-to-peer lending can easily become a tool for illegal fund-raising.