In terms of security, asking for a payday loan through the Internet does not have to be very different from doing it through a traditional financial institution. The goal of online platforms, which allow loans between people, is to offer innovative services that simplify, diversify and facilitate the way we access the money we need. In this post we talk about some issues that you should consider about the security of payday loans on the Web.
To compete with the traditional financial system.
The lack of liquidity in recent years in our country, together with the difficulties in accessing a loan, has led to the emergence of participatory financing platforms. These are regulated by the Law on the Promotion of Business Financing, which normalizes the legal regime of loans between people in Spain, to compete with the traditional financial system.
These platforms, which base their business models on the Internet, have demanded a regulation of their activity with regulations that minimize the risk of people resorting to alternative financing. The aforementioned Law supports new forms of participatory financing, such as Brakoloan that connects people who want to lend their money to others who need it to finance themselves.
The problem is that at the same time other unsafe formulas have emerged on the Internet, such as private loans or fast loans, which offer few guarantees and loans at abusive prices. Beware of the platforms that offer credits in which the entity does not study your case carefully to assess the viability of the loan. In these entities, the delinquency rate is very high and the interest charged is usually abusive. The result is that the good payers end up paying with their interests the defaults of the delinquents.
To minimize the risks of investments and avoid cases of default,
Loan Company only approves loans from those who meet a certain level of solvency. In addition, it has the Coverage System , a security fund that reduces the risk of investments in case the borrower does not pay, in whole or in part, what is due.
One of the challenges facing the new models and platforms based on the collaborative economy is building trust among users. New technologies and the Internet are an opportunity to make the financial market more flexible, thanks to an alternative model that aims to change the traditional ecosystem in a reliable and efficient way, to make our lives easier.