The difference between financial company loans and bank loans

1. The difference in interest rates

Since the threshold for bank loans is higher, while the threshold for financial companies is relatively low, The loan interest rates of banks are even lower, while those of online financial companies are relatively high. The loan interest rates of some Internet financial platforms even exceed legal regulations.

2. Reliability is different

The bank has a high reputation and the loan is guaranteed. Financial platforms are not that reliable. Some platforms will even set various traps for users so that users cannot repay on time, and then users will have to repay extremely high interest in the future.

3. The convenience brought by the loan amount is different

Comparing the two needs to be discussed on a case-by-case basis. For example, if the loan funds are small, there is no need to go to the bank for a loan. You can directly apply for a loan on a reliable online loan platform and you can quickly disburse the money, which is extremely convenient. If the loan amount is relatively large, up to tens of thousands of yuan, it is reliable to go to the bank for a loan. Bank loans have low interest rates and are more reliable. Although the loan process is more troublesome and the review is stricter, if you want to feel completely at ease, of course you must choose a bank.

Loan notes:

1. Borrowing amount

Borrowers should also apply for a loan amount based on their own repayment ability to avoid having the monthly payment be too high. , causing economic pressure.

2. Borrowing information

Borrowers must ensure that the information they provide to the lending institution is true and complete. Once suspected of fraud, the lending institution will directly refuse the loan.

3. Loan Purpose

When filling in the loan purpose, the borrower should write down the loan purpose frankly and clearly, which will make it easier to pass the review. What is the difference between financial loans and bank loans?

The difference between financial loans and bank loans is as follows: Financial loan interest rates are high. Bank car loans are strictly based on the central bank's interest rates, which are basically around 6 and fluctuate with the central bank's interest rate adjustments. The interest rates for loans from auto finance companies are significantly higher. For example, Volkswagen Finance Company's 5-year car loan interest rate with a 30-year down payment is about 3 percentage points higher than that of banks. The car loan interest rate of Shanghai General Motors Finance Company is 7.94, which is about 1.91 higher than the bank interest rate. The interest rate is higher, reaching 10-12, and is usually a fixed interest rate. Although many brands have launched interest-free discounts, they are based on the fact that the car price cannot be negotiated. Therefore, the benefits received by consumers are not large. Taking a loan of 100,000 yuan as an example, the total interest expense of an auto finance company is generally 20,000 to 30,000 yuan. Of course, some financial companies will also adopt interest-free loan business in order to increase the sales of some non-best-selling models, such as Ford Financial Company's interest-free loan business. Bank loan application thresholds are high, while auto finance companies have looser lending standards and simpler loan procedures. Under normal circumstances, the whole process only takes two or three days, and the customer can get the car without paying handling fees, mortgage fees, etc., which is convenient and fast. Throughout the loan application process, a consumer's personal credit is an important factor that determines whether they can successfully apply for a loan. The loan applicant's education, income, job, residence, and even whether he or she has a driving license all affect his or her creditworthiness. The higher your creditworthiness, the smoother the loan will naturally be. The bank car loan review procedures are relatively complicated, usually taking 5 working days or a week, and have relatively high requirements on the borrower's occupation, income and creditworthiness. When a car buyer applies for a car loan from a bank, the information required and the bank's review process are very strict. However, banks' strict review of customers does not mean that customers cannot apply for loans at banks. Generally speaking, professional groups with relatively stable incomes such as civil servants, teachers, and employees of well-known companies are more likely to be approved. What is the difference between a financial loan and a bank loan?

The difference between financial loans and bank loans is:

1. Different institutions that approve loans: bank loans are approved by banks, while financial institution loans are approved by financial institutions Or a bank that cooperates with a financial institution to run an appropriation.

2. Bank loans will definitely be subject to credit reporting, but some less than genuine loans from financial institutions will not be subject to credit reporting.

3. The thresholds for loans are different: The thresholds for loans from financial institutions are relatively looser than those for bank loans.

4. The review process is different. The review of bank loans is relatively stricter than the review of loans from financial institutions.

5. The appropriation speed is different. Financial institutions generally approve loans faster than bank loans.

6. Loan interest rates are different. Bank loan interest rates are generally lower than loan interest rates from financial institutions.

7. Different business scope: The business scope of bank loans is generally wider than that of financial institution loans.

Generally speaking, if users can apply for a loan at a bank, they should apply at the bank as much as possible, because the bank's interest rate is lower. If the bank cannot apply for a loan, they can consider borrowing from a financial institution. What are the differences between financial loans and bank loans? The truth is actually very different

With the continuous development of the credit market, there are more and more loan channels on the market. For many borrowers, the convenience of applying for loans is also different. However, many borrowers have some questions about loan channels. What are the differences between financial loans and bank loans? The truth is actually like this!

What are the differences between financial loans and bank loans?

1. Different loan application thresholds. Although banks also provide small loans to some ordinary customers, they are essentially more willing to provide loan services to mid-to-high-end customers. If you want to borrow money from a bank, your financial ability and creditworthiness are very important. In order to ensure the authenticity of the borrower's income, banks only accept people whose wages are paid by punching in and can provide bank statements. They hardly dare to easily grant unsecured loans to people whose wages are paid in cash, in order to maximize the control of lending risks. Private financial institutions, on the other hand, open their doors to the majority of people who are shut out by banks. For example, some low-income working-class people, or people who receive their wages in cash, can provide more than 6 months of self-saved wages.

2. Different loan interest rates. Private financial institutions have simple review procedures and loose loan conditions, which invisibly increases the lending risks of small loan companies. And high risk often means high fees. Compared with bank loans, people who obtain loans from small loan companies often need to pay higher loan costs. Therefore, loan interest rates from private financial institutions are often several times higher than bank loan interest rates. In addition, financial loans are disbursed faster than bank loans, and the loan business of financial loans is not as extensive as bank loans. Financial loans are issued by non-bank financial institutions, and bank loans are issued by banks. The above is the sharing of relevant content about "the difference between financial loans and bank loans". I hope it can help everyone!