No collateral required, as long as the cell phone App registration, provide identity information, the fastest a few minutes to discharge, low hundreds of dollars, high tens of thousands of dollars, which is a kind of convenient and flexible cash loans, to solve a lot of young people, "tight" the urgent need.

Conveniently, cash loans are also riddled with problems. The regulatory storm came suddenly, the regulator recently issued a "notice on the immediate suspension of the approval of the network of small loan companies" "on the network of small cash loan business risk tips. Immediately after, Beijing Mutual Funds Association took the lead in landing regulation, cash loans basic "one size fits all". This means that the regulatory layer to rectify the cash loan as the main business of the mutual fund market has been on the verge of the arrow.

Ningbo guy downloaded more than ten cash loan App in a month

To the third month found that he could not afford to pay back

Ningbo native Wu graduated from the specialty to Guangxi, in Qinzhou port engaged in crude oil loading and unloading, barging work. Sometimes, a trip to the sea is half a month, in order to kill the sea boring time, last year, Wu addicted to gambling.

As Wu recalls, within six months of gambling, he not only lost all his winnings, but also lost all his monthly salary. By chance, Wu found a shortcut to borrow money. He downloaded the app of a cash loan platform in his cell phone, and with the mentality of trying it out, after simply registering and providing his ID card, bank card and social security information, in less than 5 minutes, 3,000 yuan was credited to his bank card.

In this way, within a month, Wu frantically downloaded more than a dozen cash loan platform App to use, each platform to borrow a few thousand dollars to use to gamble, or pay back the money borrowed in front.

"At that time, I thought it was too easy to borrow money, and I was only thinking about turning over the money, I didn't care that the interest rate was so high." Wu said, he has borrowed money cash loan platform, most of the monthly interest rate of 5 points charged interest, equivalent to the adult interest rate is 60%, has belonged to the category of usury. Not only that, some platforms have to add a service fee of 5% to 10%.

Wu found that in the first two months, he was able to break down the wall and make up for it. In the third month, he panicked a little bit, his salary is only enough to repay the principal, but the interest rate is like a snowball, bigger and bigger, and ultimately can not afford.

Wu could not pay back the money by the collection calls constantly harassed, he had no choice but to find family members to help, with interest to repay nearly 80,000 yuan.

Loan annualized interest rate as high as 2229%

"First audit, through and then send a borrowing needs in borrowing × × ×, we borrow you 7,000 yuan, 7 days you have to pay back 10,000 yuan." Xiao Lu said that if you don't want to send a loan x x loan, you can go to the present x x (a cash loan app).

Loans are easier than you think

Fill in basic information and you can borrow thousands

Some people who have bad credit but are desperate for money seek help from loan brokers.

Cash loan platforms are facing a "life and death crisis", with multiple liabilities becoming the biggest risk in the cash loan model

From P2P to campus lending, and from the big data industry regulation to the ICO call it quits, we are no longer unfamiliar with the scene, and these so-called Internet financial products seem to be running on the same trajectory. After the barbaric growth, it is often the industry shuffle and remodeling.

Kaixin gold service general manager Zhou Zhihan said, the regulation called a halt to the new network microfinance licenses, the main purpose is to regulate the development of cash loans, to prevent financial risks, is not a blow to the network microfinance, including microfinance companies.

Tian Wei-Win, CEO of Online Loan Eye, said that in the current cash loan business, we are still fighting for the ability to acquire customers, who has more customers, who basically can make money, which is why it will lead to a lot of homogeneous platforms keep cutting into the cash loan platform. This leads to a problem and the biggest risk in the credit lending model - multiple liabilities.

Like the aforementioned Wu, those card-less people with generally low incomes and education, or poor credit histories who can't pass bank lending audits, or even have no personal credit records, will first think of seeking help from low-threshold cash lending platforms once they run out of money, borrowing new ones to pay back old ones, and taking out new ones to support the loans.

Data from the Qianhai Credit Thirty Wood Research Institute's Frequent Lender product shows that the current proportion of cash loan **** debtors is more than 60%, and these **** debtors have a borrowing record on at least two cash loan platforms, with an average number of borrowings of about six times. In comparison, the risk of loan delinquency for ****debtors is 3-4 times higher than the average person.

The higher default risk inevitably requires higher interest rates to cover in order to bring high enough returns. Under the lure of windfall profits, all kinds of funds are scrambling into the cash loan field. While the market is irrationally overheating, it has already laid the groundwork for the future bursting of the bubble. Not only that, the mixed qualifications of cash loan platforms have also laid the root of the trouble that it is being remedied today. It is reported that most cash loan platforms may not have lending qualifications now.