Non-bank loans – everything you need to know about them

Non-bank loans are an opportunity to receive the money you need at an express pace. There are many benefits, but we are still ashamed to talk about payday loans, despite the fact that we have become accustomed to talking loudly and openly about loans and bank loans.

Meanwhile, it is the same financial product as any other, only the terms of cooperation with loan companies differ slightly from those we know from banking procedures. Not only that – contrary to what we think, more and more Poles, having a choice of a bank loan or payday loan, are choosing the latter. Why is this happening? What else do you need to know about loans in parabanks? 

Non-bank loans

bank

Non-bank loans are an alternative to bank loans that loan companies offer to their clients. These include long-term and short-term products. They are targeted at customers who need a quick cash injection. It happens that a non-bank loan is the last resort for people rejected by banking institutions. Why? Lenders set less stringent criteria for their clients. Very often to receive non-bank cash loans, all you need is a device connected to the internet, ID card and basic knowledge of your financial situation.

A quick non-bank loan is possible thanks to the transfer of application forms to websites. Many lenders guarantee that they will receive the money within 15 minutes of accepting the application. Special identity verification applications are an increasingly common alternative to micro-flows, which allows you to bypass elixir sessions that have extended the waiting time for contract finalization. However, still not all non-bank loans provide the opportunity to take advantage of the latest solutions. Despite this, in traditional conditions we can count on receiving cash within a maximum of 24 hours.

Non-bank loans – types

Non-bank loans - types

Based on the opinions of friends or those that are available on internet forums, one might think that the term “payday loan” means only one type of loan. We borrow several hundred zlotys, we get 30 days to pay back and the end of the topic. Nothing could be more wrong. Contrary to appearances, the non-bank loans sector is very extensive and in addition to containing, let’s call it, classic payday loans, it also offers installment and long-term loans – also in the online version.

We have a chance to tailor the product to your needs and financial capabilities. You will admit that it sounds exactly as if we were talking about a bank loan. An additional advantage is that loan companies do not close their doors to customers who either have little income or are already paying back some credit and paying a high installment every month. Of course, they will check every potential borrower in the Credit Information Bureau. However, it is extremely rare that it affects the final credit decision.

Installment loans outside the bank

Installment loans outside the bank

Not only banks offer installment loans to their clients. It is true that in their case it is a much cheaper solution (the interest rate usually does not exceed 10%), but not everyone can use it. I am talking about the debtors mentioned above. They must get over that the cost of such a non-bank loan in installments, e.g. in Providence, for larger amounts will be even twice as high as the loan value. If we decide to cooperate with Good Finance and submit a loan application for PLN 10,000, the total cost of the loan will be over PLN 22,000, assuming 48 installments. Their repayment time will also not be up to 9 years, as it happens in banks. The debt should be settled between 2 and 48 months.

Let’s pay attention to this issue, because some companies, like Profi Credit, allow you to take payday loans for a period of 3 to 36 months. Underestimating such differences can be very painful for us. Remember that long-term non-bank loans carry more financial risk than their 30-day counterparts.