What Are the Pros and Cons of a Unsecured Business Line Of Credit?

Unsecured loans, also known as unsecured loans, or credit loans. No collateral is required, only identity proof, income proof, address proof and other materials (the specific proof materials depend on the bank) loans applied to the bank, Ziqing Financial Information Service unsecured loan bank is based on personal credit To issue loans, the interest rate is generally slightly higher than that of secured loans. Customers can choose the length of the loan according to the specific circumstances of the individual, and then sign a contract with the bank, which is guaranteed.

Unsecured credit borrowing

Right!

Unsecured loans, also known as unsecured loans, or credit loans. No collateral is required, only identity proof, income proof, address proof and other materials (the specific proof materials depend on the bank) loan applied to the bank, Ziqing Financial Information Service unsecured loan bank is based on personal credit status To issue loans, the interest rate is generally slightly higher than that of secured loans. Customers can choose the length of the loan according to the specific circumstances of the individual, and then sign a contract with the bank, which is guaranteed.

Chinese name

Unsecured credit borrowing

nickname

Unsecured loan

Features

No collateral required

Material

Proof of identity

An unsecured loan is a form of borrowing debt that is not guaranteed by a specific asset, that is, a loan that is not issued by a borrower or a third party to provide guarantees in accordance with the law. Unsecured loans are also called unsecured loans, or credit loans. With the continuous development of the loan industry, more and more companies and individuals know or understand unsecured loans, and many companies stand out in unsecured loans. For example, Ziqing Finance is a collection of wealth management, credit risk assessment and management. , Credit data integration services, micro-loan industry investment, micro-micro loan consulting services and transactions facilitated, is one of the leaders in the comprehensive P2P field in Shanghai, providing customers with comprehensive and personalized inclusive finance and wealth management services . Weidai creates the fastest financing platform for small and micro enterprises and private capital, actively explores the best way of debt financing, and strives to create a unique high-speed, effective, and legal online lending platform. , The lenders and borrowers will be self-matched to solve the most urgently needed loans and financing problems for the vast number of individuals and small and medium enterprises in China. Ziqing Wealth is aspiring to become a long-term trusted wealth management partner for the wealthy class in China, bringing integrity, professionalism and innovative services to every customer and their families. Based on customers 'financial needs, Ziqing Wealth tailors financial planning based on customers' risk preferences, financial conditions, family structure and other factors, bringing the best fixed-income wealth management models and comprehensive wealth management services to the wealthy class in China To provide investors with high-quality wealth management services. Ziqing Finance believes that with the development of the Internet and the improvement of China's personal credit system, advanced ideas and innovative technologies will bring historic changes to private lending, and Ziqing Finance will be the leader of this change. No collateral is required, only the identity certificate, income certificate, address proof and other materials (the specific proof materials depend on the bank). The loan is applied to the bank. The bank issues the loan based on the personal credit situation. For secured loans, customers can choose the length of the loan according to individual circumstances and then sign a contract with the bank.

1. Unsecured-no property mortgage required ^[1]

Applicants are aged 18 to 60 years of age, in good health, have a local hukou or have lived there for at least one year; have a business license approved by the industry and commerce department and have passed the annual inspection; have been operating normally for more than three months; the main place of business is in the city (county) Within range.

Salary Loan-You only need to provide a bank passbook or statement, identification, proof of address, etc. to apply for a personal loan.

Owner's Loan-A loan product specially arranged for property owners. As long as they own the real estate in the city or the real estate in the mortgage, they can easily obtain the loan.

Education loan-a loan product specially designed for people with a bachelor degree or above, and then the final loan amount is determined according to income and other conditions.

Private Owner Loans-If you are a private owner, what hesitation, loans?-No more worries!

1. Business license, organization code, tax registration certificate of the loan applicant. Legal representative identity card;

2. Permit to open an account for the loan applicant's basic account;

3. The loan applicant's flow of corporate accounts in the past year, and the flow of personal banks that can reflect the business of the enterprise;

4.Lease contract for office land or own property right certificate;

5. The loan applicant's rent invoice for the business premises in the last month. Water and electricity bills. Property fee bills (any one can be);

6, the loan applicant's recent personal residence rent payment receipt or utility bill

7. Loan applicant's tax payment certificate in the last 3 months (can provide tax payment certificate issued by the tax bureau. Or tax account details, or business tax, value-added tax invoice)

8. Special place business license (industries that require franchise must provide, such as; health permits, road transport business licenses, special industry business licenses);

9. Recent business contracts, orders;

Conditions to prepare for unsecured loans

Loan preparation procedures

Unsecured small loans, we need Chinese nationality (excluding residents of Hong Kong, Macau and Taiwan);

At the same time you must be in the range of 25-55 years of age;

The current residential address must be at least six months, and the local work must be at least six months;

At the same time, the most important thing is that the credit card repayment record is good, and it is currently not overdue. If you are an office worker, it will take you 6 months to work in your current unit.

Loan need to prepare for the second step

First, applicants fill in their contact information online and send relevant materials to Xinyi loan by mail or fax;

Secondly, after receiving the applicant's information, the relevant bank will have a special customer service to contact the applicant; Finally, the applicant will come to the site to submit relevant materials, the bank will review and approve, and the bank will lend after the approval.

As long as your materials are available, you can arrive in the account as soon as 1 day.

Bank unsecured loan application process

(1) Provide personal identification information, including ID card, residence permit, household register, marriage certificate, etc .; (2) Provide stable address, house lease contract, water and electricity payment slip, property management and other related information;

(3) Provide a stable source of income, bank slips, labor contracts, etc.

With the development of the times and the prosperity of the financial market, many non-bank channels have also launched unsecured loan business, of which private lending accounts for a large proportion.

In the private lending market, small loan companies and P2P online lending platforms account for most of unsecured loans, and P2P online lending has become the newest and most popular channel for unsecured loans. Since 2009, P2P has been in China. Since its rise, P2P has gradually become familiar and recognized by the general public.

Peer to peer lending is an abbreviation of peer to peer lending. Peer means personal. P2P lending is both personal to personal lending. In the process of borrowing, materials and funds, contracts, procedures, etc. are all realized through the Internet. It is a new financial model developed with the development of the Internet and the rise of private lending, which is also the development trend of future financial services.

With the development and progress of the entire P2P industry, various domestic P2P companies have gradually shown different development directions and trends. For those who have borrowing needs, they also need to identify the authenticity of them and not be deceived. When looking for related companies, pay attention to the following issues:

1. Years of establishment of the enterprise: Whether the period of establishment of the enterprise is within half a year or even less than one year, due to the short establishment period, whether it is reliable has not been reflected;

2. Whether there are upfront charges: if you charge before you borrow money, it must be irregular;

3. Whether the interest rate meets the standard: According to relevant requirements, the interest rate of private loans cannot exceed four times the bank interest rate during the same period, and it cannot be protected by law.

Borrowers can find suitable P2P platforms based on these conditions. At present, the more well-known domestic companies include Nuo Nuo Keke, CreditEase, Souqian, and Paipai Loan. Among them, Nuo Keoke has relatively low interest rates and services Attitude is also good. CreditEase adopts a pure offline business model, and its method of creditor's rights transfer has certain risks; the loan amount of Papiao loan is small. If the required amount is not large, it can be considered.

Business applies for loan at bank

(The company makes a pre-assessment of the collateral)

After approval by the bank, the company signs the relevant contract with the guarantee company and the bank

(For mortgage insurance and mortgage registration)

Bank loan

Corporate repayment of loan on schedule

High loan amount autonomous repayment method

Provide enterprises with unsecured loans with revolving liquidity within half a year to 3 years, or mortgages with 1 to 10 years

Acceptable collateral: housing, commercial premises and industrial plants (title)

Loan amount can be selected according to needs

l The term of the mortgage loan is 1 year, and it can be re-used on a monthly basis during the validity period.

Unsecured loans and mortgage loans for 1 to 10 years, equal principal and interest repayment

What benefits can you enjoy?

Bank Credit-Establish bank credit, real credit lending can be added, comprehensive credit can be granted, and revolving loans can be added.

Simple application process-simple procedures, fast approval, and timely lending.

Appropriate loan term and amount-The loan term is up to 120 months, and the loan amount is up to 70% of the value of the mortgage.

The repayment method is convenient-in accordance with the normal cash flow of the business, reducing the interest burden and the pressure on the capital flow of the one-time repayment of the due funds

There are a lot of so-called nationwide Internet and unsecured personal unsecured loans on the Internet today. These so-called "loan companies" and "loan groups" all declare that they do not restrict where you are and you do not need any mortgage. Just the ID card can give you money. This type of information is fraudulent, so please be aware of the risks:

Scam Features:

1. The company's name is relatively large, so-called "integrity group", "xx loan group", "xx loan group company", etc. It is impossible for such companies to exist, and the industrial and commercial departments are not allowed to register such company names;

2. Without an office address, and cannot provide a real company business license and personal identification card;

3. Generally only the mobile phone number and contact person are provided in the advertisement information. It can be seen from the mobile phone number query that the publishers are concentrated in a few provinces in China

4. Easy loan conditions, no need to mortgage or check income, basically an ID card can be used for loan;

5. When the loan seeker is tempted, the scammers will use your reasons to ask for a fee first, such as "interest, lawyer fees, verification fees, insurance fees, handling fees, security deposits, etc."

6. When the loan applicant first paid, it was found that the scammer's mobile phone could no longer be reached. Even some loan applicants did not know the other company's company, personal name, ID card, or even the other party's whereabouts. Cheated.

There will be no pie in the sky, reminding you to pay attention to the risks:

1. Only a few banks have opened individual unsecured loan types for certain regions, and they follow the normal process: they need to sign a contract with the bank, provide bank statement of salary card, etc .;

2. Please go to the other company for site inspection and sign a formal contract;

3. Please keep a copy of the company's business license and ID card of the other party, and discern the authenticity. (The authenticity of the enterprise can be checked through the industrial and commercial website, and the personal ID can be checked through mobile phone text messages or online)

4. Please do not pay any fees until the loan has reached your account.

With the development of the information age, applications for personal unsecured loans can also be applied online. There are many formal personal credit loan application platforms on the website, such as Rongdao.com, whether it is an unsecured loan, unsecured loan, or personal credit loan, you can apply for an online loan through Rongdao.com, such as Standard Chartered Bank, Citibank The personal credit products of many banks, such as Ping An Bank, have comparative advantages. Applicants can fill out loan application information online through Rongdao.com, ^[1]

1. The company's name is relatively exaggerated. The so-called "so-and-so loan group", etc., even some also provide copies of business licenses, the traces of fraud are obvious;

2. Generally only provide mobile phone number, contact person and QQ, no fixed phone, no specific office address;

3. It is generally stated that the company has branches in major and medium cities across the country, and can handle business conveniently everywhere;

4. Lending conditions are very loose and the procedures are simple. Only basic information is required and no mortgage is required.

5. The interest rate is so attractive that the monthly interest rate is only 1% -3%;

6. When the borrower is contacted, the scammers will find various reasons to ask for the upfront fees (such as prepaid interest, etc.);

Judging from the existence of unsecured property, unsecured loans do not need to be mortgaged in kind. Mortgage loans require mortgaged real estate, and require that the real estate is purchased in full or the loan is settled;

In terms of loan amount, unsecured loans can generally be loaned to 10-15 times the proof of flow, the highest is generally 300,000 to 400,000, and the amount of mortgage loans is generally 70% of the appraised value of the mortgaged property, up to tens of millions. The advantages of mortgage loans are obvious;

In terms of loan interest rates, the interest rate for unsecured loans is generally 7.9% -9.9%, and the interest rate for mortgage loans is generally 5.94%, which is lower than unsecured loans;

In terms of loan life, unsecured loans can be loaned up to 4 years, mortgage loans can be loaned up to 20 years, and the mortgage loan wins;

From the perspective of the loan time, after the unsecured loan review is successful, the loan can be released on the same day. The mortgage loan generally takes 10 working days, and the unsecured loan wins;

Judging from the strictness of the borrower's review, because there is no collateral for unsecured loans, the qualification of the borrower is very strict. Compared with unsecured loans, the mortgage loan is slightly looser than the unsecured loan;

From the point of view of the need for a use certificate, unsecured loans do not require the borrower to provide a use certificate, and the mortgage loan requires the borrower to provide a use certificate, and only the bank can provide housing, car purchase, study abroad, decoration and other certifications. Mortgage funds are more widely used;

From the perspective of operable banks, unsecured loans can only be operated by individual foreign banks and domestic banks, while mortgage loans are relatively common, and both domestic and foreign banks can operate.