Non-bank loans from a non-bank company – is it worth it?

Loans and non-bank loans are often the only solution for saving your home budget.

However, many people fall into the so-called debt spiral, they begin to have problems paying off subsequent loan installments, which often ends with an intervention by a bailiff. However, for such people, which by banks are usually described as insolvent or very high risk clients, financial institutions or a couple of banks decided to create payday loans without credit check, ie quick non-bank loans.

For this group of customers, this is often the only solution that allows them not only to temporarily save the household budget, so that it may also overcome the spiral of debt.

Parabanks

Parabanks

The banking institution is aware that loans with a bailiff are not only very difficult to pay back, but also extremely difficult for such persons to obtain another loan from the bank. As a result, loans for debtors with bailiffs offered to them by banks or other financial institutions are often the only ones they can get.

Payday loans without credit check

Payday loans without credit check

Despite the fact that payday loans without credit check may not be the most beneficial for people who already have problems with paying off their financial obligations, they often appear as the only available solutions in a difficult financial situation.

On the other hand, non-bank loans for debtors with bailiffs that are available in some banks are subject to very many conditions, which the borrower is not able to fulfill. As a consequence, people who have loans with a bailiff know very well that the only financial support they can count on in their difficult financial situation is offered to them by all types of banking institution.

Despite the fact that the banking institution is aware that perhaps lending to people who already have problems with the repayment of their current liabilities may be very risky, the high interest rate and relatively short repayment periods of subsequent installments constitute their type of guarantee that the amount of the non-bank loan will be repaid on time.

On the other hand, in order to convince more people to become interested in their offer, the banking pair institutions decide on beneficial solutions, on various types of promotions, competitions, but also allow changing the repayment terms of loans to be more convenient for the client, especially when the client tries to settle all your financial obligations in time.

Loan and credit: Do you know all the differences?

There are occasions in life when a person has the need to ask for money to buy a good, pay a certain service or face an unexpected expense. Other times you just need extra help to your economy to solve a liquidity problem in your business or start a major investment. In these circumstances there are many who need to ask for financing, but before accessing this route it is convenient to know the differences between the loan and credit terms. And, although they are often used as synonyms, these financial products are not the same. That is why it is convenient to know how to differentiate them and thus be able to decide between one or the other.

 

What is a loan? 

What is a loan? 

In a loan, the financial institution gives the applicant a fixed amount of money at the time of signing it. Both agree that the amount lent has to be returned within a certain period, usually through regular fees, which can be monthly, quarterly, etc. The usual thing is that the installments have the same amount for the entire time it takes to pay the loan and with them the money borrowed is returned and a portion of the interest is paid. These interests are charged on the total that the entity has lent to the requesting person.

Loans are usually requested for the purchase of a good, such as a house (mortgage loan) or a car; or a specific service, such as student loans or those used to book a vacation, for example.

 

What is a credit?

credit loans

In the case of credit, the financial institution makes available to the client an amount of money, but it is not delivered all at the beginning of the operation as with the loan. The money is available to the person to whom the credit is granted for a certain time and can use it according to the amount you need at any time. To access this money you can use an account or a card.

As the client returns the money, he may have more, but without exceeding the agreed limit. The deadlines for returning a credit are decided by the client, so it has more flexibility than loans.

Interest is paid based on the money that the client has used and a commission is usually charged on the balance that has not been used. These interests are usually higher than those of a loan. When the agreed term for the loan is over, it can be renewed or extended. The credits are usually used to overcome mismatches between collections and payments or moments of lack of liquidity, so they are more suitable for businesses than for individuals.

 

The main differences between loan and credit are

credit loan

  • Availability of money : in one payment or progressive.
  • Return terms : with fixed or more flexible fees.
  • Interest : depending on the total amount or what is actually available.
  • Purpose : to purchase a specific asset or to overcome specific liquidity problems.