What do you know about credit loans? – Financial & Insurance News

What do you know about credit loans?

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Credit loans are very common, and because they do not require collateral, they are the first thing many people think of when they are short of money. How much do you know about credit loans?

 

What is a credit loan?

A credit loan is a loan granted on the creditworthiness of the borrower, without the need for collateral. It is characterized by the debtor’s ability to obtain a loan without collateral or third-party guarantees based on his or her creditworthiness alone, and is guaranteed by the borrower’s creditworthiness.

 

What are the features of credit loans?

1, credit loans are low. Compared with mortgage loans, the threshold of credit loans is relatively low, generally only need the borrower has a stable job and income, with the ability to repay on time, and has a good credit history, meet these conditions, the borrower can get a loan.

2. Credit loans are disbursed quickly. As long as the borrower meets the requirements of the loan and can provide complete loan procedures, the loan can be obtained on the same day at the earliest.

3. The amount of credit loan is low. Because credit loans are not secured by collateral, lending institutions need to assume a greater risk. In order to reduce the risk of the loan, the amount of loan to the borrower is not high, and generally will be about ten times the monthly income.

4. High interest rates on credit loans. For borrowers in need, credit loans can solve urgent needs, but also take into account its higher interest rates. Therefore, before taking out a loan, it is best for the borrower to determine the amount and duration of the loan according to his or her ability to repay, so as not to repay too much pressure and affect normal life.