The loan does not have to be taken out of the bank. Non-bank loans are also very popular. Currently, Fine Bank are a much safer place to take out a loan, if only because of the stricter regulations that regulate their activities.
What are non-bank loans?
This term means any loans that are not granted by banks, but loan companies, for both short and long term. Usually these are smaller amounts, however, some Fine Bank allow to incur liabilities of several dozen or even several hundred dollars.
In opposition to loans granted by banks, liabilities from loan companies are more accessible. They also often do not require any documents to be provided, e.g. a workplace certificate. The loan is granted on the basis of a contract concluded between the borrower (a natural person) and the lender, i.e. a financial institution. This document is governed by art. 720 of the Civil Code.
Types and characteristics of non-bank loans
- Short-term loans payday loans – by far the most popular type of non-bank loan. The repayment is usually made within 60 days, and the sum ranges from 200 to about 3000 USD. Also available are mini-payday loans that can be taken online and their amount usually does not exceed 1000 USD. The entire process of granting payday loans online often takes just 15 minutes. To get it, all you need is your ID card, phone number, email and bank account. Poor creditworthiness is not an obstacle to this type of loan. An example is payday loans without BIK.
- Installment loan – an ideal solution for people who need more cash, even up to tens of thousands of dollars. Usually it is granted for a period of 10 to 24 months, up to a maximum of 48 months. Repaid in monthly installments. These types of loans can be structured to be a suitable solution for indebted people. The larger sum of the liability allows repayment of the expired loan, and the extended – compared to payday loans – repayment time, allows the refund within the agreed period.
- Mortgage loan – this is a liability incurred against a specific property. It can be a built-up plot, a single-family house or a flat. This property will be a collateral for the liability, so it can be used as usual for the time of repayment. In the absence of repayment, it becomes the property of the loan company.
- Lombard loan – this is a liability contracted against movable property, e.g. watch, electronics, jewelry. It is granted for a short period of time, usually 30 days. At the time of the pledge, the pawnshop is obliged to keep the received item in appropriate conditions, so that after the deadline it can return intact to its owner.
- Social loan – the contract is concluded between private persons, without the intermediary of non-banking institutions. Special social platforms play this role, bringing together people in need of loans with people who are willing to make such a commitment. These types of websites provide appropriate tools that enable and facilitate such a transaction, and help recover funds in the event of non-repayment.
Non-bank loans granted via the internet can only be taken by adults. Some financial institutions set their own age limits. Usually the borrower is required to be at least 20 years old.
Differences between a loan and a non-bank loan
A non-bank installment loan can be compared in several respects to a loan, namely in the amount and repayment date. However, the inference process is different in both cases. An installment non-bank loan can be taken without meeting strict requirements. You also do not need to fill in complicated formal documents and specify the purpose for which you intend to use the money borrowed.
To make a commitment at the bank, the institution assesses the creditworthiness and creditworthiness of the person applying for the loan. The first one is assessed taking into account the amount of income, costs of monthly maintenance as well as education and occupation. To determine credibility, credit history is taken into account. In addition, the applicant must have an ID card and home address in Poland.
As for the liabilities granted by non-bank institutions, usually a valid ID card, having a source of income and address of residence in Poland are sufficient. Depending on the loan company, your credit history is checked or not.
Loans taken out of non-bank institutions without many formalities are a sure guarantee in the event of sudden and unforeseen expenses. Before choosing a loan company, it is worth getting a handful of information about this institution and checking the reviews, as well as carefully read the terms of the contract.