What are the advantages and disadvantages of Guangzhou microfinance company?

With the gradual acceptance of the concept of advanced consumption, loans came into being. We know that the threshold for applying for loans from banks is high and the procedures are complicated, so many borrowers give up bank loans and look for microfinance companies. What are the advantages and disadvantages of small loan companies in Guangzhou?

Advantages of Guangzhou Microfinance Company:

(1) The application threshold is relatively low. If the borrower's income is low or the borrower's salary is paid by borrowing, the borrower can apply for a loan through a microfinance company.

(2) Small loan companies lend faster and are suitable for borrowers who are in urgent need of funds. We know that the auditing procedures of banks are strict. In order to control the risk reasonably, a series of investigations are needed before lending. Small loan companies lend money faster, so they completely win at this point.

(3) The borrower's loan information in the microfinance company will not be included in the personal credit information system, in short, it will not be recorded in the credit information system, and it will not affect the borrower's credit record.

Disadvantages of Guangzhou Microfinance Company:

(1) The loan fee is relatively high. Because the internal control risk of small loan companies is not perfect, the threshold of loan application is relatively low, and the risks that small loan companies need to bear are relatively large. To a certain extent, small loan companies can effectively control risks by slightly increasing the expected annualized interest rate of loans, but there will also be different charging standards among small loan companies. The borrower can start the mode of shopping around and choose the appropriate loan method and the expected annualized interest rate of the loan.

(2) There are many scams. On the one hand, borrowers are in urgent need of money when applying for loans from microfinance companies. Many unqualified microfinance companies carry out various publicity, and then borrowers fall into scams. This requires the borrower to have a vision and need to distinguish whether the loan company is formal. Formal microfinance companies should not ask borrowers to pay fees for any reason before lending.

Although the threshold of microfinance companies is low, it is not without its own bottom line. If the borrower has a bad credit record, the borrower's loan application will also be rejected by the microfinance company.