The Internet-based lending product has gained widespread acceptance with its ease and popularity in the midst of financial overtness on the Internet. However, the pattern of "first-in-first-in-first-in-first-in-first-in-first-out-out-of-high-frequency repayments has shown a gradual trend of “neglect” in recent times. What's the reason it lost its “puppet” status in web-based lending products? Let's get to know what's going on in the way Internet lending is going to go away。

Why can't the Internet mortgage take the rest

First, the borrowing costs are higher. This mechanism allows the borrower to repay interest only during the repayment period, thus forcing the lending institution to include the outstanding principal as well as the corresponding venture capital cost when calculating the loan rate. Assuming default, the agency would even have to pay additional costs to recover the arrears。

Second, the pattern of pre-emissions breeds problems of poor financial flows. Under this model, the agency can only recover interest, but the source of the original profit, the principal, cannot be recovered, without putting pressure on the agency's financial flows. It is assumed that, if most of the funds are left idle in bank accounts, the bank will be able to use the money to borrow and earn interest earnings, but under a first-in-first-in-first-in-kind network lending, the lending institution will be able to recover the principal only on maturity, a state that is likely to stagger the financial chain。

Finally, repayments under the first-in-first-in-first-in-first-out model are not stable. In the process, the borrower would simply have to repay interest and float in an uncertain state for the time of repayment. For example, unforeseen circumstances, such as the loss of employment of the borrower or the bankruptcy of the company, may prevent the borrower from recovering the principal within a specified time. At the same time, if interest is abandoned, the borrower will fall into deeper debt problems。

So, I'm sure you're concerned about how long it's gonna take to complete the loan application? In practice, this is closely related to the type of loan and the means of application. As a general rule, upon submission of an application for a loan, the staff member reviews the application and the applicant ' s qualifications and, accordingly, if the information is correct and the applicant is of high quality, the rate of clearance may normally be in the order of two weeks. However, it could take only a few minutes if it was automatically reviewed through the system; however, if the application was for a Provident Fund loan, it would take more time to pass through two institutions, the Provident Fund Centre and the Bank。