The vast majority of us, non-bank companies are associated with breaks, or loans for small amounts that can be obtained without leaving home. Their characteristic feature is that we have to pay back the money relatively quickly, and we usually have 30 days for it (hence the name “payday loan”, meaning money borrowed for a while). However, recently, non-bank companies have broadened their offer. Many of them offer non-bank installment loans today, whose repayment takes place within a dozen or so months.
You can borrow up to PLN 25,000 in this way, and pay off your debt even for 48 months. Such amounts will satisfy many customers, so, as the lender says, the demand for their product is relatively high. So let’s think about whether it is worth using such loans. Certainly their great advantage is the fact that we can get them very easily. Most companies give them via the Internet, which means we can borrow money without leaving home. It is enough to register on the website of the lender, we will verify our data by means of a verification transfer and we can already apply for money. Most companies do not require us to provide income or security certificates. You can have money at your disposal within a few hours of starting the procedure, which is a very good result. Some non-bank companies that grant installment loans send their representatives to the customer’s home to sign a loan agreement with them. In this case, the source of income may be verified, although this is not always a condition for granting a loan. Also in such cases, there is usually no security and the applicant’s money is at his disposal very quickly. The advantage of such loans is certainly the fact that usually borrowers are not checked in the databases of the Credit Information Bureau. For many people this is of great importance, because many of them have a bad credit history, so they can forget about a loan in a bank. So, to sum up, the greatest asset of non-bank loans is the time after which we have money at our disposal, as well as the lack of security.
However, we must be aware that non-bank installment loans have one major disadvantage. This is, of course, their high cost. Compared to loans offered by banks or credit unions, it is many times higher. This cost consists of many different types of fees, interest or commissions. Fortunately, when applying for such a loan, we are almost always informed about the amount of monthly installments as well as the total cost of the loan. Since these amounts are fixed and will not change during the repayment of debt, we can analyze whether we can afford such a loan and whether it is worth applying for it.
Non-bank installment loans are becoming more and more boldly entering our market. They also have more and more clients who are happy that they have an alternative when choosing an institution where they will borrow money. However, we must realize that these are relatively expensive loans, so before we make a request for money, let us consider whether we will be able to pay our liabilities in time. Otherwise, we may get into financial trouble because we will be charged additional costs, which will make the loan costs even higher.