For individuals: it will lead to many credit records, and credit will become a flower. Later, when applying for other loans from banks, banks may think that they are short of money and their economic ability is not very stable. For financial institutions, there are uncontrollable risks in loan issuance, and loan recovery is prone to problems; Secondly, because the borrower can withdraw the loan at any time in the revolving loan, the bank cannot control the purpose and specific amount of the loan. The above is the harm of revolving lending. As the saying goes, everything has two sides. In terms of lending, it requires both the self-discipline of lenders and the supervision of financial institutions such as banks.

First, many friends often have insufficient funds in the process of using online loans. At this time, some online loans frequently recommend some products that can be used with non-performing loans. The specific form is that the loan that has just been paid off can be borrowed again, even in some installment loan platforms, as long as the borrower shows a certain amount after repaying part of the funds, it can be lent to continue consumption. And online lending institutions can enjoy terrible compound interest in the borrower's multiple loans. As long as borrowers are not seriously overdue, they can basically refinance carefully. This kind of revolving loan phenomenon is very humanized for some borrowers, and it can also make maximum use of the loan amount.

Second, everything happens for a reason, and it is precisely because these seemingly friendly rules have extremely strong negative effects, especially for groups with poor self-discipline and unreasonable consumption. Then, in the online loan industry, what harm will online loans supporting revolving loans cause to borrowers? For online lending companies, revolving loans are likely to bring great risks, but they can also achieve the purpose of stabilizing customers in disguise. After an institution borrows for a long time, some borrowers will become dependent and will be extravagant in daily consumption. Behind the revolving loan, there may be heavy debts, which will eventually be accompanied by loans to support loans, and then fall into revolving loans.

Third, for borrowers, revolving loans can easily create the illusion of abundant funds. In the long run, it is easy to lose the sensitivity to money and borrow money, and then use it to pay off old debts. If there is a P2P online loan with usury and beheading interest, the borrower's debt ratio will be high, and he may be forced to repay some unreasonable loan fees, and there is no legal channel. Therefore, we need to be vigilant against revolving loans.