Surely there are differences in functions, ways and advantages between one credit with another. For example, if you want to buy a home mortgage loan (mortgage) it seems more suitable. What are the benefits of taking credit without collateral?
# 1. It Does Not Need Long, It Can Be 5 Days Liquid
Unsecured credit services are a solution for those of you who need cash for urgent needs. Examples of urgent needs: there are families who are seriously ill, repair roofs due to storms, repair vehicles due to flooding and so on. Usually banks take care of credit in less than 5 days, even a bank can take care of it within 1 day.
# 2. Easy Submission Terms and Low Fees
The process of submitting credit without collateral is fairly easy. You only need to come to a (conventional) bank, compare loan (digital) products, fill out forms and meet the terms and conditions. There are several banks that eliminate administrative fees, but there are also some banks that charge fees. If you pay attention to banks that provide low loan interest, usually charge a provision fee (or the initial admin fee).
# 3. Loan Repayment Time Can Be Longer
Some banks also provide facilities with a longer tenor or repayment period. You can pay off loan within 5 years (60 months). With a longer tenor or repayment time, it is expected to facilitate installments.
# 4. Allows for Accelerated Repayment
Unsecured Credit (loan) has a feature for accelerating repayment. Be careful before, because there are several loan products that charge fees if you make an early repayment. Before you accelerate repayment, it’s best to compare the accelerated repayment costs with non-repayment fees.
# 5. Loan Ceiling Can Reach IDR 200 Million
At present the loan loan ceiling can reach Rp 200 million, and there are even banks that provide loans of up to Rp 500 million. Of course the higher the loan ceiling, of course the higher the terms.
What should loan be used for?
What do you think loan should be used for? Judging from the characteristics of its products, loan is more suitable to be classified as consumer credit. Usually people use loan to deal with lack of funds. For example, parents lack funds of Rp 10 million – Rp 20 million for tuition, so they can use loan.
Ideally large expenditures (such as buying a house, vehicle, funding for children’s education, kpr, marriage and religious travel) are prepared and planned in advance. Proper planning allows you to meet these needs without having to owe.
Sometimes there are also disasters and our emergency funds are insufficient. For example, suddenly there was a big storm and damaged the roof of our house. The emergency fund that we have prepared, turns out to be insufficient to replace the roof. loan is one of the solutions to these conditions.
How is loan for business? There are people who agree to loan for business capital, but there are also those who oppose it. In our opinion, if you want to use loan as a business capital, you should calculate the worst risk. Examples of what happens if your new business isn’t crowded and can’t cover loan interest? And so forth.
You are the one who determines
loan products certainly have their advantages and disadvantages. Make sure before you apply for loan, you have studied the product, the rules of the game, know the fines and fees that you have to pay. In addition, you need to be wise in using credit without collateral. Finally, you need high discipline and remember that a person’s maximum installments are 30% of income.
Have you ever intended to apply for loans without collateral? Why do you want to apply for loans without collateral ?