With the advantage of no mortgage, no need for relatives/colleagues to guaranty, unsecured loans have become the preferred choice of many customers who need loans today. Loan approval or not is based on the borrower’s personal loan history and his or her ability to repay. In addition to these issues, what do you need to pay attention to when taking out a salary-based unsecured loan?
The concept of unsecured loans according to payroll
If you are a new borrower for the first time, you should learn through the form of unsecured loans by salary before making a final decision on the loan option.
An unsecured salary loan is a loan product from retail banks or financial companies that is not secured by valuable assets. Accordingly, the prerequisite to borrow in this form is that customers must be working in organizations and businesses and have income from monthly salary.
Depending on each credit institution, the regulations on loan conditions will be similar or different (current working time, monthly salary, etc.). In addition, interest rates and investment limits are different.
Basic conditions to apply for a payroll loan
If you are an officer, employee, or employee who is working in organizations and businesses and receives a monthly salary, you are eligible to apply. Banks, credit companies will have regulations on your working time or minimum salary. Usually required to have worked at the unit for 1 year (12 months) or more and the salary is from 3-4 million VND/month.
In addition, for customers who are employees of the bank/financial company, the loan will have many incentives in terms of interest or registration procedures.
Some risks when borrowing money according to payroll
In the process of applying for a loan of any kind, there will be risks that customers may face, for example:
Influence of loan history/credit card payments
When there is no guarantee of the ability to pay on time, the customer’s credit history will be negatively evaluated. Basically, loan history is considered as a means for lending institutions to analyze and evaluate the reputation of customers. It can also affect the maximum limit that 1 Customer can borrow.
If you’ve ever made a late payment on a credit card or loan, you’ll get a bad rating and can greatly affect your mortgage in the future.
Penalties incurred due to late payment
When the payment is due, but the customer is late to pay, fails to pay, or fails to fully pay the principal or interest according to the contract, he/she must bear a certain amount of fine. This fine level is agreed in advance in the contract between the customer and the credit company. The customer’s inability to complete the amounts as signed leads to an additional fee that is not small.
Affecting loved ones
Such a slow payment may cause trouble for the customer’s relatives for a long time. The lender can even contact the customer’s colleague to request a payment contact.
In addition, cases where borrowers face risks affecting their ability to work, live, and cannot pay debts may also occur. In these cases, the borrower’s relatives will have to bear part of the loan (depending on the initial agreement between the two parties).
Classification of common unsecured loan packages
Consumer cash loan
Borrowers will be able to transfer cash to meet personal purposes (buying furniture, traveling, paying tuition fees, medical examination and treatment, etc.). The lending bank will directly transfer money to the customer via the bank account or the customer will receive it directly at the transaction office if the loan application is approved.
Loan to buy goods in installments
When buying products that are supported by installments, buyers only need to pay 10% – 50% of the value of the product. The rest of the loan will be paid in advance to the store. The customer will pay the borrowed amount, including principal and interest or fees, on a monthly or quarterly basis.
Loans for business activities of small and medium enterprises
It is also a form of loan to supplement working capital for small and medium-sized enterprises. The loan amount can be used to serve production and business activities of the enterprise.
What is the best unsecured loan package?
We will not be able to have an exact answer to this question. Because you must consider your own financial needs and capacity to choose the most suitable loan product. You can compare loan packages currently supported by banks and large and small credit finance companies for more options.
Besides, if you are in need of a consumer loan of less than 18 million, quick approval of documents just need ID card, you can choose quick loan packages online. OnCredit is always ready to advise you on the most suitable loan supported by our lending partners. Submit a consultation application easily via the website OnCredit.vn or download the OnCredit application on your Android/iPhone phone.