A financial company must become a reliable partner if you plan to borrow from it.
The fact is that there are enough fraudsters from either side of this financial transaction. People looking for a loan are very often in a difficult moral situation, and they do not need additional hardships with unscrupulous partners. That is why you need to be very careful when choosing a company from which you can take a loan. Where do you start checking?
Legal regulation of the online loan market
Despite the fact that online loans are received and returned online, it is an equal financial relationship, as is the case with bank loans. Obtaining instant loans on the card still implies the signing of an agreement. Due to the fact that the interaction between clients and creditors takes place online, the physical signing of the contract does not take place. When applying for a loan, the client receives a loan agreement by email or it is saved in a personal account on the organization’s website, signing is with a one-time password that comes to a mobile phone. Of course, first of all, this all happens in the interests of a financial organization, which is important to protect itself from the risk of default on loans. But what should bona fide borrowers, who can also get caught by scammers on the network, do? How to determine if the organization is reliable enough and whether it is worth contacting it for a loan?
What information about the company should be checked first?
It is very important, when choosing an organization for lending, to collect as much information about it as possible. Here’s where to start:
- Time of foundation of the company – how many years on the market;
- Key financial indicators that are in the public domain – are there any reports for the last period, whether the indicators are good enough, whether the company has problems that can then affect the borrowers;
- Does the company have all the necessary licenses, certificates, permits and certificates; it is important to check not only their presence, but also their validity period, whether they have been revoked. This will show whether the company is eligible to engage in such activities.
- If there is publicly available information – how many clients were served by this company for the entire period of operation, and how many of them then applied again. This information is very important, it confirms customer loyalty.
Usually, all information can be found on the company’s website or on the website of official regulators. It is worth spending your time checking a future counterparty, this can save you from more serious problems in the future.
How to choose the right MFI?
Of course, before entrusting a company with your personal data and applying for an online money loan transfer (vay tiền online chuyển khoản), it is worth checking if it is reliable enough. What you should pay attention to first of all:
- Check the information about the MFI you are interested in through the system of the national bank or other financial regulators. If there is no information about the organization, do not use its services, this company is illegal.
- Explore the official website of the MFI. Give preference to companies with authorization via BankID or PCI DSS certification. Also, the site should have transparent lending terms. The site itself must be reasonably well protected from potential hacking and meet the highest security standards.
- Read the contract carefully. It should describe not only fines and penalties for late payment, but also the conditions for calculating interest. For example, you can request a loan for one amount, while half will be given to you immediately, and another half – in a few days, and the conditions for the first and second loans will be different. Remember: you have the right to familiarize yourself with the agreement before signing.
- Request a loan repayment schedule. Please note that MFIs indicate interest rates per day, and the real cost of the loan is hidden behind the designation APR (Annual Percentage Rate). Do not be lazy to independently calculate the correctness of the accrual of interest, especially if the organization has promised promotional or bonus reduced interest. The terms and conditions of all publicly announced promotions must be complied with in full. But it is worth checking.
- For loans of any amount exceeding the minimum, the financial institution is obliged to provide a passport for a consumer loan, where all the important nuances of obtaining and repaying a loan should be described in as much detail as possible.
- Monitor the legality of the accrual of fines and penalties. Even if there is a delay, all payments must be charged in strict accordance with the amounts and interest specified in the contract. Any violations are already a reason to contact this company and find out the reasons for the discrepancy in the amounts.
Should I check the reviews of the company on the Internet?
Undoubtedly. And you should be on your guard if there is no information about this company on the Internet (no contacts, no reviews). Or, on the contrary, very unflattering information about fraudulent activity may appear. In the second case, not a step towards the habitat of deceivers. And in any case, you need to be extremely careful and attentive, since a new company always tries to enter its contact details into business directories on the Internet as soon as possible. In the case of swindlers, they prefer to spread information about themselves through the media and through street ads.
Of course, it is quite difficult to focus only on reviews – very often reviews can be customized. Moreover, both positive – their own order, and negative – the order of competitors. Therefore, carefully read the review itself – what exactly was the client satisfied or dissatisfied with, this will help determine how sincere the person who wrote it was.
How to choose a reliable company?
If several sources at once confirm that a financial institution is reliable, such as oncredit.vn, if information about it is in open sources, if several people who can be trusted recommend it to you at once, you can conclude an agreement with this company.
By the way, a good advice – after you complete the first deal with the company of your choice, do not forget to leave a detailed review about this experience, this will help clients in the future to decide on a reliable financial partner.
Why is it very important that the company from which you take a loan is reliable enough? The whole lending process is a rather lengthy procedure. In order for everything to go smoothly enough, it is very important that both partners are focused on concluding a mutually beneficial contract. If only one partner has such a goal, problems are inevitable. This can be unauthorized transfer of personal data to third parties, and incorrect accrual of interest and fines, and many other unpleasant moments that can be prevented if the choice of a partner is approached as responsibly as possible.
If you are lucky enough to find a good reliable company, the best option is to remain a loyal customer and apply again to the same company for the next loan. This step has several positive aspects:
- the reliability of the company has already been tested on our own experience and is beyond doubt;
- You know to the smallest detail the whole procedure for granting a loan, and the company already has your personal data and there is no need to upload it again;
- You can find all the necessary information on the site, as well as use your personal account;
- many MFIs have special loyalty programs for regular customers, which can involve either the accrual of bonuses, or a decrease in the interest rate, or other pleasant little things;
- such a step significantly saves time on checking a new company for compliance with all reliability parameters.
You should not chase the ghostly advantages that are described in advertising – very often they simply do not correspond to reality. Trust your own experience – choose the best.
Read more:
HOW TO FIND OUT WHETHER A CREDIT COMPANY IS RELIABLE?