What is the difference between a non-bank loan and a loan, and to whom are such offers addressed? Check with us!
An online non-bank loan is often called quick credit by customers. However, it is worth noting that, as the name suggests, these are not liabilities that can be incurred in a banking institution. This is not the only feature that distinguishes loans from online loans.
Guaranteed bad credit loans with no fax required
When the financial crisis hits us overnight, we do not have time to analyze individual offers. In such situations, the time and the first Google search results count. For example, typing “needs money quickly” will show not only message boards with auctions of various items but also articles on loans as a way out of the financial hole and specific offers from lenders. However, it happens that they are not the epitome of the best features of payday loans online. Therefore, it is worth having a basic knowledge of financial products in case of problems with your household budget or to give advice to others.
Currently, the fastest way to obtain the money you need is a guaranteed bad credit loan. Both in the case of payday loans and repayment in installments, the application procedure is carried out quickly and on clear, understandable terms. Usually, the information required when completing the form is on hand in the form of data contained in the identity card or on the contract confirming our earnings. In the non-banking sector, inference procedures are usually transferred to a virtual environment, which is why it is so important to present all information in a way that can be understood by everyone. If problems still arise, we can contact the consultants via the hotline.
In turn, when applying for a loan at a bank, we must take into account the need for extensive documentation regarding our finances, employment, and general financial situation. We will be asked to submit a tax return for the last year, employer certificates of employment, etc. In the case of a mortgage, formalities will increase with documents regarding the property. In addition, Usually, the rules for granting this type of commitment are not entirely clear to us. Most often, the reason for problems with understanding the course of the inference procedure is to use the professional vocabulary characteristic of the banking sector. However, we always have an adviser who guides us through the next stages of reasoning and, if necessary, dispels our doubts. What other differences can we find between a bank loan and a non-bank loan?
Amount and repayment date
The first thing to mention, apart from the issues mentioned above, is the difference in the values specifying the date and amount of the liability in non-bank institutions and banks. When we decide on a loan, we have a chance to receive huge amounts of money, sometimes reaching up to several hundred thousand zlotys. It all depends on the type of commitment. In the case of a mortgage, they will be larger than cash loans. The repayment deadline can be up to several dozen years, for example, 30. The consequence of this is the abovementioned extensive documentation submitted during the application procedure and detailed examination of the applicant in the debtors’ databases. People with any negative entries will not get a chance for a bank loan.
In turn, in the case of a non-bank installment loan, the repayment deadline is a maximum of several years – usually 4 years. This is also caused by the lower amount of financial support, which reaches PLN 25,000. Due to these differences, the procedure of verifying the customer in the debtors’ databases also takes place less stringently. Some companies accept negative entries if our income guarantees trouble-free repayment.
What can we use financial support for?
The largest restrictions on the purpose for which the funds will be allocated appear in the case of bank loans. All information on the expenses for which we have incurred obligations is included in the contract. For example, if you are applying for a mortgage, you must have a certain amount of your own contribution and a specific plan to spend the funds received. What can we use the bank loan for? Here are some examples:
– house construction,
– consolidation of other liabilities,
– purchase of home electronics and household appliances
– buying an apartment,
– purchase of a plot,
– property renovation.
If we break the terms of the contract and allocate the money for another purpose, then we may be accused of extorting the loan or we will be charged with the obligation to return the funds received to the bank.
In contrast, online installment non-bank loans can be used for any purpose. When applying for financial support, you will not be asked what the money will be used for. We will not be accounted for whether we have properly used the assistance received. However, you are warned against taking out payday loans to pay another liability. For consolidation purposes, installment loans are recommended.
Where can we find legal regulations?
All activities that include the conclusion of a contract between two entities are regulated by Polish law. This is to harmonize procedures and eliminate the dangers of possible fraud. The same applies to money-lending contracts. Here, too, we will find the difference between a bank loan and a non-bank loan.
In the case of ambiguity and willingness to check the provisions on bank credit, we should look for any information in the dedicated Banking Law. On the other hand, fast online non-bank loans are included in the Civil Law standards.
Who provides financial support?
For financial support providers, you can also find the difference, as mentioned above. How does it look like? Non-bank loan for online installments can be granted by loan companies, other enterprises or natural persons. For example, if you apply for social lending, then the investor will be our lender. It is worth noting that a non-bank loan can also be called financial support from parents or friends. In turn, traditional cash loans or mortgages can only be granted by banks.