Spark Global Limited Reports:
Over the years, material consumption has caused many people’s deposits to be negative. Because of economic pressure, there will always be some “promotional” calls at this time to explain the knowledge of loans. Many people are deeply involved, because many people who lack funds have lower interest rates than banks. What everyone didn’t expect was that “routine loans”, “usage loans” and other violations occurred during repayment.
Once the borrower fails to repay the loan, it will be exposed to the address book, door-to-door collection and other methods. With the violation of the regulations, many families are affected, and even some college students are unable to continue their studies, resulting in serious public opinion. For this reason, the supervision and public security in 2018 The Ministry of Finance clearly stipulates that “usage loans” and “routine loans” are illegal.
The borrowers who entered the 2019 address book were also exposed. For this reason, many people calculated their own interest and finally chose to refuse repayment, requiring the platform to charge interest and principal normally, and apologize for exposing the address book. And compensation, but the online loan executives are of course unwilling to do so. For this reason, fewer and fewer people are repaying. In the end, the platform has financial difficulties and serious violations of regulations are banned.
Now everyone understands that online lending has a good beginning to promote innovation in financial reforms. However, in the process of development, many platforms violated the concept of supervision, either by allowing lenders to absorb deposits or harming borrowers. It’s a normal repayment plan, so it is very necessary to conduct a rigorous investigation.
Why is the opportunity for lenders to cash out? Expert Wang Qiang believes that more and more borrowers are repaying, and it is mainly reflected in two aspects at the moment!
1. People have sufficient funds, and the direction of repayment is relatively clear. When online lending was banned, everyone was burdened with debts, but the lenders who violated the regulations did not want to repay because they needed formal repayment to be able to do so. Accepted, so some platforms began to negotiate repayment after the online lending was completely banned, so that the borrower can repay the loan quickly and complete the opportunity for the lender to land.
2. With the intervention of supervision, the borrower’s repayment is guaranteed. We all knew before that borrowers suffered high interest rates during the repayment process and suffered losses to varying degrees. Service fees and guarantee fees alone would be allowed. These people can’t afford to repay. Since the platform began to scrutinize the loan, the borrowers used to be loan sharks with more than 36%, and now it is twice the LPR, so the borrower can negotiate the repayment of the principal if it violates the regulations.
As long as the borrower can repay normally, then some lenders will get the return of the principal. Of course, the borrower may only repay the principal, and the lender will only get the return of the principal. This is the best way The ending. If you say that lenders have always wanted the annualized interest rate of their lenders, unless the platform realizes full cashing, otherwise it will not be cashed normally under the current circumstances. Are you right?
Reprint indicated source：Spark Global Limited information