I. Characteristics of informal lending institutions
1, simple contact information
Formal lending institutions have fixed business premises and contact information, while informal lending institutions generally only have a mobile phone number or QQ number, and will not leave a fixed landline number, so pay attention to the contact information of this institution.
2. It is acceptable all over the country.
Formal lending institutions only handle local business, which is conducive to controlling credit risk, while informal institutions generally claim that they can handle national business, which is probably a means for them to cheat in different places, so you should pay more attention to this matter.
The interest rate is too low.
The interest rates of informal lending institutions are generally very low, but in fact, although the threshold of unsecured loans is low, the interest rate is not low, because lending institutions need to bear higher loan risks when issuing unsecured loans, and in order to control this risk, the loan cost will increase, so lending institutions with low interest rates must be cautious.
4. Charge before loan
Formal lending institutions will not require borrowers to pay any fees before the loan, while informal institutions are likely to charge fees before the loan for various reasons, so if the lending institution you are looking for requires you to pay before the loan, you should be cautious.
Second, the characteristics of formal lending institutions.
1, ask for personal qualifications carefully.
Because unsecured loans are loans issued by lending institutions only based on their trust in personal qualifications, they will focus on evaluating their repayment ability and willingness. For example, a series of questions such as the nature of your company, your income status, credit status, and the required loan amount will be asked in detail by the lending institution to judge your qualifications.
2. Invite the borrower to meet and discuss in detail.
If you meet the application conditions, the lending institution will invite you to communicate further and invite you to submit the application materials in person and sign the loan contract. They will be happy to show you the information of the organization, unlike informal organizations.
3. There is no charge before the loan.
Any formal lending institution will start to charge interest after the loan is completed, and will never charge you any fees before the loan. If the lending institution requires you to pay before lending, it is not a formal institution.
Adventure and income complement each other.
High risk often means high income. We often see that institutions with lower application thresholds tend to charge higher interest because of higher lending risks, and vice versa. Therefore, if it is a low-threshold and low-interest lending institution, it should not be a formal institution.