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Advantages and disadvantages of common channels for wage earners to apply for loans
Ordinary wage earners are one of the main targets of inclusive finance's welfare policy. Because wage earners have stable conditions such as work or income, low default risk is also an innate advantage. In addition, the huge demand group of wage earners' loans makes Internet finance companies, including banks and small loan companies, flock to this market. However, when faced with numerous loan institutions and loan products, wage earners can't grasp which one is the most suitable for them. Therefore, the advantages and disadvantages of common loan channels for wage earners are analyzed.

Apply for a loan from a bank

For wage earners who apply for loans for the first time, it is inevitable that they will first think of the bank as a borrowing channel. In response to inclusive finance's policy, the bank has indeed launched a loan product for the working class, and the bank's loan interest rate is very low (and it has always been the lowest compared with other channels). However, most banks still don't pay attention to ordinary wage earners. Their conditions are often relatively high, and the application threshold is also relatively high. Generally speaking, credit information must be spotless, with high income requirements, even the entry threshold of the industry. In addition, the complicated process and slow approval are also long-standing problems.

Apply for a small loan company

Microfinance companies are the product of private lending, but now they have been renamed as financial lending institutions. Wage earners are one of the key customer sources of small loan companies, and the loan products launched are more targeted. Compared with banks, the conditions for small loan companies to apply for loans are relatively open, the threshold is low, the procedures are very simple, the approval speed is fast, and they can even lend money on the same day. However, due to its nature of private lending, the loan interest rate has been criticized, which is extremely high compared with banks.

Looking for a loan intermediary company

The loan intermediary shoulders the mission of "making the loan easier", making the borrower stop doing it himself, leaving him exhausted and exhausted, but finally he didn't get the loan. Loan intermediaries need to integrate the loan products of local banks, small loan companies and other institutions, and finally make reasonable and effective matching according to the borrower's conditions, customize the most suitable loan scheme for the borrower, and at the same time improve the loan approval rate to meet the borrower's needs as much as possible (directly seek the bank, usually the bank has the final say). However, when handling loans, loan intermediaries need to pay service fees (also called handling fees) in addition to the corresponding loan interest.

Internet financial platform

With Internet finance, the channels for borrowers to apply are more abundant. At present, there are thousands of internet financial platforms, and they are not limited by geography, which greatly improves the convenience of wage earners to apply for loans. The characteristics of mutual fund platform applying for loans are: fast, fast and very fast! However, such platforms often have more "exorbitant taxes and miscellaneous fees" and the loan cost is still very high!