The banks’ credit offer is extremely diverse. As an individual customer, you have special-purpose loans at your disposal, including a mortgage, car or consolidation loan; you can also use solutions that allow you to spend money in any way, such as a cash loan, cash loan, or revolving limit on your account. There are many differences between such products and payday loans. First of all, the vast majority of them are repaid in installments and have a longer repayment period than payday loans. They can be used by people with a permanent source of income, and even unemployed persons on unemployment benefit can apply for payday loans.
Who is the payday loan available to and who can take advantage of the bank loan?
Non-bank companies use milder criteria for assessing a loan application than banks, which is why payday loans are available to a wider range of interested parties. To be able to take advantage of a bank loan offer, you must have a good financial standing and a positive history of repayment of existing liabilities. Single negative entries in the BIK or the lack of a source of regular income are enough to cross out the chances of a mortgage or a cash loan.
Lending institutions use a different policy than banks and are also open to those customers who have had arrears in settling their debts in the past or who do not have stable earnings. On the other hand, they also check potential borrowers in BIK data sets and debtors’ registers. Contrary to popular belief, payday loans are therefore not available to everyone. Virtually no non-banking institution will grant a loan to a person having problems with repayment of liabilities incurred or having a bad credit history. As a general rule, people who have major income from social security or maintenance payments may have difficulty obtaining a financial commitment, but may apply for a payday loan in non-bank companies.
How much does the payday loan cost, and what are the loan-related costs at the bank?
Compared to banks, loan companies are open to more risky clients. They grant quick loans exclusively from their own cash resources, while banks also have funds from deposits and deposits at their disposal. The interest rate on loans or credits granted in banks is much lower than in the case of payday loans. Loan companies work to earn, and the source of this profit will be not only the percentage of the commitment, but also contractual penalties and interest for the lack of timely repayment or sending reminders. For example, interest for late payment may be calculated in the amount of four times the NBP lombard loan rate. Therefore, financing conditions in loan companies are not as attractive as in the banking sector.
When will payday payday be free?
Some non-bank companies offer the first quick loan with the APRC in the amount of 0% and no additional fees, which means that the payday loan is completely free. This attractive offer is to attract new customers who will be satisfied with the company’s services and come back for more loans. The second and each subsequent payday loan taken at the same institution is granted on standard terms. It is important to remember that the offer is free until you make repayments on time, you only need a few days to postpone them due to the lack of repayment of fees and interest.
Instantaneous and easy way to money, and a bank loan and waiting for a decision
If you want to take advantage of a revolving or cash loan offered by a bank where you already have a personal account, the formalities will be kept to an absolute minimum. In this case, you can usually apply for funding via the transaction website. Since the bank already has your personal data and has access to the history of your account, you can count on a quick credit decision and almost immediate availability of funds. In other cases, the procedures are more complicated and take more time. Meanwhile, when applying for payday loans, you can always count on the lack of unnecessary formalities and simple loan procedures – even if you are using the offer of a given lender for the first time. The decision usually takes 10-15 minutes, provided that the application is submitted during business hours. If you have a personal account in the same bank as the non-bank company, you can count on immediate transfer of a quick loan.