Mofin- the Credit Card in the 4.0 Technology Era

by Fintechnews US
/
November 10, 2018

Credit cards are essentially a form of credit based on the credibility of the bank towards cardholders. The Mofin application is also considered a form of credit in the 4.0 technology era, as the nature of loans is fully online based on honest information that are provided by users.

Mofin’s credit-based loans are similar to credit cards

As mentioned above, the nature of using a credit card is to borrow money from a bank to make payment transactions based on the credit card’s holders’ credibility. Mofin’s borrowers also borrow money online based on their credibility as for credit cards. However, Mofin's loan approval requirements are not as high as opening credit cards.

Normally, the conditions for banks to grant credit cards in Vietnam is to declare accurate personal information and financial records, to have stable occupations that are not listed in the credit card granting restricted occupations, are not having bad debts and must be over 18 years old Vietnamese citizens or  foreigners residing in Vietnam. With Mofin, it is much easier to set up a loan account, just satisfying two basic requirements: i) providing accurate, sufficient, honest information and ii) over 18 years of age.

Mofin is a peer-to-peer lending technology that connects lenders to borrowers anytime, anywhere. In its nature, Mofin's application is like an invisible credit card, users can borrow money online at any time when needed with extreme convenience.

 

Mofin’s credit-based loans are similar to credit cards.

Mofin as an invisible credit card that facilitates many incentives

Mofin’s application assists borrowers with some preferential policies similar to the form of credit card loans. To be particular, when borrowing money on Mofin, borrowers will receive the following incentives:

A small fee is required for loans

Mofin does not charge interest on a loan, but charges a fixed service fee for each loan as if you withdraw cash in your credit cards. This fixed fee is not high, only 100,000 dongs per loan for students and 200,000 dongs for employees. The fixed fee is directly deducted from the Mofin loans, for example, if you are employed and make a loan of 5,000,000VND on Mofin, you will receive VND4,800,000 in your ATM account.

No property mortgage required

This is also one of the similarities between Mofin's online loan application and credit cards. When borrowing on Mofin clients just need to provide correct and sufficient information that is required by the system, no need to mortgage papers such as identity cards, driver's licenses, telephones, transportation means, etc. As long as the provided information is verified, the loan will go directly to the registered ATM account.

These procedures are similar to opening credit cards. Clients need to bring all relevant documents that are required by banks and submit them directly to banks; then wait for banks to assess the files, to classify their files for credit limit granting and finally issue credit cards.

 

No interest is charged on the loan

Mofin's loan policy does not include interest on all loans. For example, if you choose a loan of VND 5,000,000 (~ 215 USD) and a payback period of 15 days, after 15 days, you will only pay VND 5,000,000 without any additional interest.

This policy of interest-free loans of Mofin seems to be similar to the form of preferential loans on credit cards. As for cash withdrawal / credit card payment, if borrowers pay the loan on time, and the loan will not be charged interest. However, Mofin's interest-free loan policy differs from that of credit card loans, which tend to do more favor to borrowers.

The difference between online loans via Mofin and payment on credit cards

As mentioned above, Mofin's detailed loan assistance policy differs from credit cards. The difference is that the loan is charged interest when overdue, but Mofin loans are not.

Credit cards have a maximum 45-day billing period, which includes a 30-day billing cycle and a 15-day extending period for repayments. Exceeding the above-mentioned period, the cardholder will be subject to the penalty fee imposed on the bank. However, with Mofin, even if the loan is overdue, the borrower will only be subject to overdue penalties without being charged interest on the loan.

Mofin - The online credit solution for all

The credit card payment model is civilized and supports many priorities, but not everyone is eligible to open the card. However, for those who are still students or work in the list of credit card granting restricted occupations, if they have urgent need to borrow small loans, their only way is to borrow money from the black market. Many people are forced to pay exorbitant interest rates when they fall into the so-called "black credit". Therefore, when it is impossible to borrow money from the bank, the use of Mofin is a simple and civilized credit solution in urgent circumstances for everyone.

With only a smartphone, a bank card and all necessary personal documents such as an ID and a student ID card, you can borrow a loan from VND 1,000,000 to VND 5,000,000 on Mofin without any interest charges. This Mofin's humane lending policy has been providing a great deal of assistance to those who need a quick loan to pay their rent, utilities, monthly living expenses, funeral/wedding expenses, tuition fees, the cost of hospitalization, etc. without knowing where to borrow or not being able to pay both principal and interest when borrowing from the black market.

The possession of a highly rated loan account on the Mofin application is similar to having a credit card on hand. Any time you urgently need money, you just need to access Mofin application, choose the loan amount and loan period, wait for transfer and withdraw money from an ATM. No time for cumbersome loan procedures plus no interest on loans, no mortgages, Mofin has become the number one civilized online loan application in Vietnam today.