Non-Credit Lending Loans vs Online Loans, Which Is Best?


In the event of a sudden need for funds, lending is a natural thing to do. There are two types of cash loans that are often preferred – Non-Credit Lending and online loans. What’s the difference between the two? Check it out here!

Anyone should have applied for a loan. Making a real money loan is not just because we are not good at managing personal finances or having an extravagant lifestyle, but it can be because we are facing an unexpected situation in an emergency where we need immediate funds in large numbers so that we do not can only rely on savings. This kind of emergency can happen because you have an illness or accident, a natural disaster, and so on.

There have been two types of loans

There have been two types of loans

That are very popular among the public: Non-Credit Lending loans and online loans. The existence of both is quite opaque and very easy to find. Whether it’s a Non-Credit Lending loan or an online loan, they can both be popular because they don’t require a loan or guarantee to apply for a loan. Regardless of their similarities, they both have quite a big difference. How much better and worth it to get an application? Let’s compare it together!

The biggest difference we can see from Non-Credit Lending loan providers and online lenders. Non-Credit Lending lenders are banks, both private and government owned (SOE). The online lender is a fintech company that implements a peer to peer lending (P2P lending ) system that provides financial services in the form of loans provided to the public using the Internet.

How to Apply


Current Non-Credit Lending loans can be applied in two ways – both offline and online . For the classic offline way, you will need to visit your nearest bank branch to provide a credit card Non-Credit Lending loan. For online Non-Credit Lending loan applications, you can apply through the official website of your online Non-Credit Lending provider bank.

If the Non-Credit Lending loan can be applied in two ways, the online loan can only be applied online through the site or application you need to download first. When it comes to submitting online , you can definitely save time, energy, and money because you don’t have to leave the house.

Loan Limit

This is the question most people ask. Exactly what are the limit on Non-Credit Lending loans and online loans? In terms of loan terms, they are very different. For Non-Credit Lending loan limits, you can apply for a loan of up to $ 500,000 while online loans typically range in the tens of millions, from $ 20,000 to US $ 30,000. But unfortunately Non-Credit Lending loans always have a nominal loan value of at least $ 5,000 so you don’t want to need funds under $ 5,000, you have to cancel the loan. In contrast to online lending, the average lender has a minimum limit of US $ 1,000.

Loan Period

Loan Period

The term of the Non-Credit Lending loan and online loan are affected by the nominal loan limit granted. For Non-Credit Lending loans, due to the very large loan limit, the average bank lends a minimum of 12 months to a maximum of 60 months. Whereas for an online loan term that has a smaller loan limit, it usually lasts from 7 days to 180 days.

For Non-Credit Lending loans, the average bank implements a fixed interest rate system for the first 1-2 years, while the rest is calculated based on floating interest rates that are in line with the fluctuations in the market. In contrast to the online loan interest rates that most apply the interest rate fixing system, the interest rates remain the same until the end of the installment.

There is another difference in interest calculations that you need to know when it comes to online loan interest rates as the days of loan lending are small and tenor times are shorter. In contrast to the interest rate of the Non-Credit Lending loan calculated on a monthly basis as the loan amount is larger and tenor is longer.

Required document requirements


All loan products always provide the terms of the document you need to fulfill, but of course the requirements of the documents vary. For Non-Credit Lending loans, the required document requirements are usually a National ID (Citizenship Card), NPWP (Taxpayer Identification Number), pay slip (income statement), newspaper account, credit card ownership (not all banks require this). As for online lending, the required document requirements are less and easier to fill. The average online loan requires only ID and NRP documents.

The process applies

The process required for Non-Credit Lending loans and online loans is also very different. This is due to a number of factors, especially loan nominations and document requirements. For a Non-Credit Lending loan, the process takes between 3-14 business days because the bank has to check the completeness of some of the documents you provide in advance. Plus, if your loan amount is above $ 100,000, it will take some time for the funds to be credited to your account. In contrast to Non-Credit Lending loans, online loans do not take long to process loan applications because the loan amount is too small and the terms of the document are too sluggish to be processed quickly. The average online loan can be disbursed in just 1-3 business days.

Possible approval

We must have heard of many mortgage applications being rejected by related banks. There are many reasons why a Non-Credit Lending loan is not approved, from the incomplete documentation provided to the failure of BI Checking . With the Non-Credit Lending loan issued by the bank, there will be a BI Checking done first by checking if you have a bad credit record. Other than online loans that do not require BI Checking so are more likely to be approved.

Credibility and security

Lastly is the credibility and security that Non-Credit Lending loans and online loans have. For a Non-Credit Lending loan because it is issued by a bank, then its credibility and security are guaranteed. As for online lending, you need to be extra careful in choosing the fintech company that provides it as not all fintech companies are registered and overseen by the OJK (Financial Services Authority). One of the leading fintech companies registered with OJK is Good Finance so it is guaranteed to be safe. So if you want to apply for an online loan, Good Finance can be a good option.

Consider and Calculate the Maturity Before Applying for a Loan

Whether it’s a Non-Credit Lending loan or an online loan, before you apply for one, it’s a good idea to consider and do some calculations first. See the applicable terms and conditions, from the payment system, the additional costs incurred, to the penalties or penalty fees incurred if you are late for installment payments. By studying them carefully, the filing and payment process can be carried out safely without any hassle.