Non-bank loan – what is it and who grants it?

Non-bank loans can be the last resort in non-gate situations, but they can also become a nail in a casket. Each borrower should be well aware of his rights and obligations, and above all, carefully read the lender’s offer before signing the contract.

What is a non-bank loan?

Non-bank loans are financial assistance offered by institutions other than banks – the so-called parabanks, loan companies as well as private investors. Each of them operates on a different basis, therefore the rules for granting loans may be different. Non-bank loans over the internet, including payday loans and installment loans, have been the most popular among quick loans for many years.

Non-bank loans have a short repayment period, minimum formalities and quick access to cash. Often enough access to the Internet and just a few minutes to get the amount needed on the customer’s account. In many cases, formalities have been reduced to the necessary minimum – all you need is your ID card, internet mail, an open bank account and phone number. Obtaining a non-bank loan online does not usually require any certification.

A person applying for support should be of legal age, sometimes they are also asked to confirm the source of income and its amount. Non-bank lending institutions verify the correctness of the borrower’s data by means of a transfer made by him or by logging into electronic banking through a special application; this data can also be checked by phone. The disadvantage of non-bank “loans” is the short repayment period – usually from 7 to 30 days.

Installment loans outside the bank

An online loan can be a solution for those in debt. However, you have to be very careful with these types of products, because it is easy to fall into a spiral of debt and lead to bankruptcy. Loans for those in debt can usually be divided into installments, usually the lender also requires additional security for repayment in the form of real estate or valuable movable property.

A non-bank loan in installments can be a cash flow of up to several tens of thousands of zlotys, and installments can be spread over two years – it all depends on the amount borrowed and arrangements made in the given financial institution or with a private lender.

Many non-banking institutions do not check the credit history of their clients in all databases, but only in some – loans without BIK are becoming more and more popular. Interestingly, the market also offers proposals for financial support for the unemployed.

Advantages and disadvantages of non-bank loans

Advantages and disadvantages of non-bank loans

The advantage of quick loans is primarily their affordability, minimizing formalities, lack of certificates, and even the possibility of obtaining money without leaving home. Funds can be obtained in a dozen or so minutes, and often the borrower’s ID is the only necessary document.

The disadvantages of loans granted by loan companies include, most often, a short repayment period, as well as high loan costs (due to a higher risk of default). It is also worth considering that for each day of delay in repayment, quite large penalty interest is charged, sometimes also fees for reminders and reminders to pay. Ineffective writings usually lead to legal proceedings, the costs of which are borne by the debtor.

Types of non-bank loans – loans for companies

Non-bank loans are intended not only for individual clients, but also for companies – also in this case formalities have been kept to a minimum.

An entrepreneur who wants to apply for financial support must have a company headquarters in Poland, cannot be in the debtors database, and his activity must be entered in the CEIDG register.