Online personal loans are a relatively new banking scheme where you will apply for a bank loan on the internet and you will get approval for it in as little time as 10 seconds. As you can expect, there have been a lot of fears about whether this will be safe or not. Generally, it is, however, there are a few risks involved with 10 second bank loan. They include the following:
1.Higher interest rates
This is a major problem with 10-second bank loans. They tend to have an APR of about 30% to 1500% which means that you are paying about a rupee equivalent to $2 or $50 for a $100 loan which you have to pay back in 14 days. If you find higher interest rates on loans on the online site, it is probably better to just go to the bank as they will give you a better and more importantly safer deal.
2. Identity theft
There are various security features which sites give to prevent identity theft from happening. However, many people are still worried that they there are people who will be able to get through those security barriers. Therefore, it is crucial that you be as careful as possible if you are using these ten-second bank loans and if you are too worried, it will be wise to not use it.
3. Hidden risks and terms
These are something which you have to be extremely wary of. There are many terms in every bank loan you take. However, they tend to be harder to hide on paper as compared to the internet due to the various web designs. Therefore, it is crucial that you do notice as much as you can and then triple check to make sure that there is not anything you are not aware of.
Scams are very common on the internet. It is absolutely crucial that you are as careful as possible when you browse those sites. A useful tip is that sites have to be https to be secure as https stands for hypertext transfer protocol secured.
These are just some things you should know about bank loans, especially found online. There are many more problems with this service at the moment and as of today, it will be safer and perhaps even cheaper to just go to the bank to get loans