Does an installment loan from a non-bank company have to be expensive?

 

Due to the fact that the non-banking company pays PLN 15,000 or PLN 20,000 to the customer, the loan repayment is spread over several or even several months. The rules are therefore similar to the rules in force in banks. However, the non-bank institution reviews the application within a few minutes. Installment loans are long-term loans. They are an alternative to loans granted by banks. Who uses them most often?

The first group is people who did not receive a loan from the bank. The second belongs to customers who want a short payout period.

Who has the chance of an installment loan?

Who has the chance of an installment loan?

Persons with even low incomes can count on payday loans. For installment loans that are granted for higher amounts, the situation is different. The financial institution carefully verifies that the applicant will be able to pay the commitment.

Generally, the installment loan is most likely to have people who:

  1. They earn a steady income
    The loan company may request a salary certificate or statement, which it will then verify.
  2. They have a good credit history
    Non-bank entities, similarly to banks, estimate the risk of providing financial support to a given client. At the same time, they use various databases and registers gathering information on how clients regulate their obligations.
  3. They do not have too many other liabilities in banks and loan companies – an excess of loans and credits may cause the lender to cope with the servicing of another debt.

Some loan companies give preference to people who appear on their database as regular customers.

How much does the installment loan cost?

How much does the installment loan cost?

There is no 0% promotion in the installment loans segment which you can meet with popular payday loans. This means that even the first commitment will be charged with interest and additional costs calculated in accordance with the policy of the loan company.

Installment loan costs should be compared based on specific examples. Let’s assume that we want to borrow PLN 10,000 for 24 months. How much will we have to give back?

Lender Amount to give away [PLN] APRC [percent]
Extramoney 19583.02 107.09%
Headled 19574.80 107.1%
Providencia 19445.28 105.82%
Ralka 17906.51 85.6%
Kinoi 19546.54 106.41%

As you can see, the differences in the total cost of loans are significant. Therefore, it is worth carefully comparing the products offered.

To do this, you do not need to search and collate information on the pages of individual bidders. Just take advantage of a good ranking of non-bank products.

Warning! Most loan companies stipulate that after a detailed analysis of the customer’s creditworthiness, they can offer a loan with a higher interest rate or with additional fees.

How to choose a loan company?

How to choose a loan company?

Costs are an important point to look out for when choosing a liability to be paid in installments. But not the only one.

It is worth ensuring that the loan company operates legally. How? Checking the list of loan companies on the website of the Polish Financial Supervision Authority.

Entities applying the highest business and ethical standards belong to the Polish Association of Loan Institutions. This organization also publishes a list of its members on its website.

 

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