How to Choose the Right Term of Online Cash Loans to Avoid Loans

When applying for a cash online loan, tenor times are important to keep in mind because if you choose the wrong tenor, you may not be able to pay the installments so you are out of debt. Therefore, first, study the ways below before choosing one!

Online cash lending is a staple in society today. The reason is that online cash lending offers a lot of conveniences to reach all the people, young and old. The variety of facilities provided by online cash lending can be done anywhere and anytime, the process is fast and financially viable in just a few days, with requirements that are easy to fill. The most common requirements for applying for a cash online loan are IDRs, Taxpayer Identification Number, Tax Slips, Pay Slips, Employment Letters, and even personal account number holders.

When you apply for a cash online loan

When you apply for a cash online loan

What is the first thing you notice about the terms? The average person’s attention will be focused on how much interest the online cash lender will charge. But there is one thing that you need to look at carefully, which is the tenor of the loan tenure. The tenor is the term loan provided by your online cash lender for you to pay off the installment.

For the average tenor of online cash loans, it ranges from 10 days to 360 days a year. Why is tenor time offered on a daily, not monthly basis? This is because the interest charged is calculated by day, not a month. So, of course, the tenor of the tenor is different from the Creditless Credit tenor, which has a monthly tenor and interest calculation. Before you choose a tenor, get acquainted with the two types of the tenor of online cash loans that you need to know:

Short Tenor Period

For short term tenants, online cash loans usually range from 10 days to 60 days (3 months). Short term tenants are chosen by those who feel they can afford to pay for larger installments because the shorter the tenor term is selected, then surely the nominal amount of the installment will be greater.

This is where short tenor shortages come in. As for the advantages, given the short tenor tenure, the interest rate also becomes smaller as the interest is calculated on a daily basis. If you feel that you can afford to pay high monthly installments, then the short tenor option is a good choice. But if you want a fast-paced debt, but don’t have the ability to pay a large installment, then you should choose a long tenor.

Long Tenor Period

Whereas for a long term tenure, the period of time that your online cash lender gives you ranges from 90 days (3 months) to 360 days (1 year). If you choose the long tenor, then the nominal installment will be less than the short tenor so those of you who have a passive income can pay it off. But unfortunately, the total debt becomes bigger. Considering the interest charged is likely to increase as the number of days is longer.

How to Choose an Online Cash Loan Duration

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From the explanation of the short tenor and the long tenor above, you can already see where the difference between the two is. But if you’re still confused about which tenor is right for you, you can find out how to choose it below!

Pay attention to Financial Capability

The first way you can do that is to look at your financial skills first. Remember, what kind of debt installment are you currently paying off? These types of installment debt can be credit card debt, mortgage (Home Ownership Credit), KPA (Apartment Ownership Credit), KTA (Non-Credit), KMG (Multiple Credit), KUR (People’s Business Credit), KKB (Vehicle Credit) Motor), and so on. You need to pay off all the debts you have, if they total more than 35% of your monthly income, then pay off those debts before you can take out a cash online loan.

Let’s say you currently have a credit card debt of $ 500 and a $ 2 million mortgage. While your monthly income is $ 10 million, your debt should not be more than $ 10 million x 35% = $ 5 million. Given that the total debt is just $ 500 + + 2 million = $ 2.5 million, then you can get online cash loans at a rate of US $ 1 per month.

Simulate Calculations

The second way is very important because by performing a fluctuation simulation, you can see how much money you can set aside each month to pay off your online cash loan installment debt. This time we will try to simulate the calculation of interest for short tenor 90 days (3 months) with the 180-day long tenor (6 months) with 0.5% daily interest. The amount borrowed was $ 10 million. So the calculation goes like this:

  • Short Tenor Period

Basic installment : $ 10 million (borrowed funds): 3 months = $ 3.3 million

Interest payable: $ 10 million (funds borrowed) x 0.5% x 30 days = $ 1.5 million

Monthly installment : $ 3.3 million (principal installment) + $ 1.10 million (interest paid) = $ 4.8 million

Total debt total: $ 4.8 million (monthly installments) x 3 months tenor = $ 14.4 million

  • Long Tenor Period

Basic installment : $ 10 million (borrowed funds): 6 months = $ 1.67 million

Interest payable: $ 10 million (funds borrowed) x 0.5% x 30 days = $ 1.5 million

Total installments per month: $ 1.67 million + $ 1.5 million = R32.17 million

Total debt total: USD3.17 million x 6 month tenor = $ 19.02 million

  It doesn’t seem that different if you choose a different tenor. If you choose the short term tenure, the monthly installment will be larger, but if the overall debt is reduced, the long term tenure is the opposite as monthly installments become lighter, but the total debt becomes larger. So, consider carefully when you take an online cash Pinjaan tenor yes!

Check Returns on Owned Assets

Check Returns on Owned Assets

We tend to be reluctant to pay off our assets to a bank or pawnshop because the loan application process is so sluggish that you prefer cash online loans. But when taking out a cash online loan, you have to re-check the assets you own to prevent unwanted things like the inability to pay back the overdue cash online loan due to mismanagement or for other unforeseen circumstances such as layoffs ( Termination of Work Relationships). That way, when you face unpaid arrears, you can immediately sell the assets so that the installment can be repaid quickly.

Please note the Early Payment Fee Fees

It’s been a long time, but do you have more money to pay for it sooner? Don’t rush into paying all the installments because you need to know that there are early repayment fees if you pay them back sooner. The costs of course vary, which can range from 1% to 5% of the remaining installment amount. Therefore, keep in mind the terms and conditions that apply when you apply for an online cash loan to know for sure what the fees will be.  

After learning about the advantages and disadvantages of short and long term tenants along with choosing the right one, it’s time to apply for an online cash loan through the Palliser family which can lend you up to $ 20 million with a maximum tenor of up to 180 days. The requirement is very simple as it has a national ID, NPWP, and local bank account.

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