What is the difference between online lending and bank loans?

There are the following differences between online lending and bank loans:

1. Channel differences: online lending is lending through an internet platform, while bank loans are handled through traditional banking institutions.

2. Threshold of entry: Internet lending is relatively low, and borrowers can apply for a loan by simply registering on the Internet lending platform; while the threshold of entry for bank loans is usually higher, and needs to meet certain requirements such as credit assessment and collateral guarantees.

3. Interest rate level: the interest rate of online lending is generally higher because online lending platforms are more risky and are not subject to regulatory constraints; whereas the interest rate of bank loans is relatively lower due to the fact that banks are equipped with more sources of funds and regulatory mechanisms.

4. Loan amount and duration: online lending platforms usually provide small, short-term loans, which are suitable for personal emergency needs; while bank loans usually provide larger amounts and longer terms, which are suitable for business operations or home purchases and other needs.

5. Risk control: online lending platforms are relatively weak in risk control, and may have operational and credit risks; while bank loans are relatively more reliable in risk control due to strict approval processes and regulatory requirements.

In summary, there are obvious differences between online lending and bank loans in terms of channels, entry thresholds, interest rate levels, loan amounts and terms, and risk control. When choosing a loan that suits your needs, you need to consider these factors comprehensively and make a choice based on your personal situation.

Expanded: According to China's relevant regulatory provisions, online lending platforms need to operate in compliance, but there are still some illegal platforms and non-compliant behavior. Bank loans are strictly regulated and offer a high level of security. During the lending process, it is recommended to carefully choose a legitimate and reputable organization to understand and ensure that your rights and interests are protected.