Non-bank loans are an increasingly popular product. The loan in the bank involves checking the credit rating, and not everyone would pass it positively. A large part of loan companies offer loans without Retrodatabase. This is one of the most sought-after types of loans. Loans without certificates and installment loans are also popular.
Types of non-bank loans. What should I choose?
Everyone lacks cash from time to time. A lot of people then reach for a loan. If this is not their first financial commitment of this type, they usually have no problem with choosing a loan company and offer. If someone takes the first loan, they may feel a bit lost. The types of loans are different and you have to take a good look at the offers to choose the best one.
However, before we start choosing the type of loan, we must consider whether we need it. Maybe, however, a loan would be better for us? These two financial products are different. Among others the loan can be granted by a loan company, a private person or a bank – and only the bank grants the loan. In addition, the loan in a bank always involves more formalities than a loan in a non-bank institution.
However, if we are sure that we only need an “ordinary” loan in the company – then we should decide what kind of loan we take. To do this, you need to analyze your needs, your home budget, and consider your situation as an employee.
An installment loan or a payday loan? Loans that we will take online
Online monitors and online installment loans are similar to each other, but both are very easy. The loan application process is done online. After positive verification, as a rule, the money still affects our account the same day.
These two types of loans differ in repayment time and the amount of debt we can incur. The crediting period in payday loans over the internet is from 30 to 60 days (depending on the offer). Usually, the highest amount that we can conclude is 10,000. zł. We pay all of it back at the loan date specified by the loan company. Often, the first hour can be obtained for free – then we pay back exactly as much as we borrowed.
On the other hand, installment loans, as the name suggests, are repaid in installments. The debt is incurred for a much longer period (up to 3 years). Installments are repaid monthly in the day specified in the contract. It is worth remembering them, because unpaid loans can make life miserable.
Social loan. How does social lending work?
Social loans – the same as the installment and payday – we get online. If we get it, because social lending is risky for both the borrower and the lender.
Social lending consists in placing a notice by the borrower about the need to take a loan on the selected portal. To do this, first you must pass the verification. One of the most popular verification methods is to transfer a symbolic sum to the account of the website, where one is looking for someone who is willing to share a surplus of money.
This system of operation can be compared to popular portals with various advertisements. Only that in this case the subject of the announcement is taking a loan from a specific person. When you find an investor, the money from his account is transferred to the borrower’s account. Depending on the contract, a social loan can be repaid at the same time as a break or a payday.
Social lending, however, is risky. The investor is not sure that his money will be given back. The borrower is also not sure exactly who lends money – although we know the person’s identity, it is not a specific financial institution.
Loans with a revolving limit. On how to replace the credit card
Thanks to the revolving loan, the credit card is no longer needed. This type of loan is a good option for someone who needs a steady flow of funds on their account. Loans with revolving limits are easy to take: after logging in to the lender, we need to indicate what amount we want to borrow (and we can usually borrow up to several thousand zlotys).
We can use this money many times. Each time we regulate debt, the funds available through the loan increase. When we apply for a credit card, we usually get it for an indefinite period of time – until we give it up. A loan with a revolving limit is taken for the time specified in the contract.
Loan without certificates – fast cash without unnecessary formalities
Loans without credentials are loans that we can take and online, and being on site at a particular loan company. This is a commitment to which we do not need a certificate from the employer about our earnings. Of course, we have to be verified in the debtors’ databases, but the question of whether and how much we earn “deals” with the statement signed by us.
Of course, the amount of earnings we provide in the statement must be true. A representative of a loan company has the right to contact our employer and confirm the data we provide. And if we take a loan without any certificates, it means that we would prefer to avoid calling the employer.
Cash loan. Money with home delivery
You can apply for this loan by phone, at the branch of the company or modern – online. As it turns out, we are still eager to choose this type of loan. After verifying and receiving a positive decision, the customer gets money straight to the house. The repayment method is dependent on the agreement with the lender (installment payment or one-off payment).
It might seem that in the era of digitization this way of borrowing will disappear, but as you can see there is a large group of people who want to receive cash straight home. If someone does not have a bank account or has an account taken by a bailiff, it’s hard to be surprised.
Loan social benefits and retirement. A commitment to alternative sources of income
Pensioners are not excluded from the group of borrowers. However, not every loan company is able to lend them money, just as not everyone wants to lend money to 18-year-olds. Non-bank institutions individually set the lower and upper age limits as a risk that they are able to take. In addition, some loan companies provide help for social and family benefits.
If you want to be sure if a given company gave us a loan and do not waste time before submitting the application, it is enough to read the terms of the loan, which are always described on the lender’s website.
Contract loan and contract for specific work. Do you need to have a contract of employment?
Non-banking institutions very often accept a contract of mandate and a contract of work as a source of income sufficient to take out a loan. Sometimes you have to show that you are paid for a specific period, but you do not always have to do it – it all depends on the arrangements of the company we went to. It is important for the lender that we are a credible borrower.
Therefore, the employment contract will always have an advantage over the so-called śmieciówkami. However, its lack does not mean that we do not have any rights to apply for a loan. The current job market is reluctant to give permanent contracts and loan companies understand this, so they adapt to their clients. Even some banks are already accepting alternative sources of income.
How to choose a loan? Ways to choose a loan
As you can see, there are many types of loans. If we really need a quick cash injection, we have to choose the right offer. The only question is how to do it? First of all let’s check all available options, and let’s not choose the first better offer. The company must be checked for credibility and whether the contract contains hidden costs.
At this stage, we can eliminate all companies that will not give us a loan because of our situation or age. It makes no sense to look at loan offers for 25 years, when you are only 18. It does not make sense to look for a loan that we only get with a contract if we do not have one.
Finally, it is worth to analyze your home budget. How high will we be able to pay back? How long will it take for us? Will not taking this loan lead us into a spiral of debt? Only after answering these questions is it worth completing the application – in case of different situations, do not waste your time as well as the consultant who will have to deal with our loan application.
Consolidation of loans. The way for several debts
There is another type of loan that we should sometimes take into account. It is a loan for debt consolidation, which we are already burdened with. It happens that without reflection we take one loan for another and before we know it, we are unable to pay off our debts. Instead of waiting for a bailiff or an equally stressful call for payment, you have to start working – for example, consolidating debts.
We can do this by taking a consolidation loan at the bank. The bank repays our debts at the same time, and we owe money to only one institution. You can also take one larger installment loan and pay off your debts yourself, and then be a debtor in one loan company. The third way to consolidate is to take advantage of the relatively new consolidation loan offer, which works just like a consolidation loan.
In each case, we pay one, lower installment, and our portfolio is relieved. It is true that the debt increases even more, so we will pay it longer, but we no longer have a dangerous bailiff above us. In general, it is not worth it to reach the moment when a consolidation loan is needed, but when we are not able to meet our obligations – it is worth thinking about.