Current location - Loan Platform Complete Network - Loan consultation - Risks of online loans
Risks of online loans
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 breach of contract disputes.

2. A lot of lender information published on the Internet platform is in the name of "loan company" and "financing company". 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 are often punished for "illegal fund-raising", "illegal absorption of public deposits" and disturbing the order of financial management.

3. If loans are issued on behalf of the network platform, 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.