Loan and payday loan
The main difference between a loan and payday loan is the fact that financial assistance in the form of a bank loan can only be obtained from a bank. The second separateness is that in order to get a quick cash loan you don’t have to appear in person at the lender’s office. That’s why online loans are very popular.
Banks most often grant high loan amounts. Mortgages for housing purchase are popular among consumers. However, payday loans offered by non-bank institutions are much lower. Another difference is that lending companies do not require you to specify the purpose for which the money will be allocated. Customers who pay installments on time can count on favorable discounts and facilities during the repayment.
How are customers verified?
If the customer has no arrears in paying the installments and is not on the register of debtors, he should not have a problem with getting payday loans. However, before providing financial support, lenders often verify the creditworthiness of their clients. In addition, the lender must check the identity of the applicant – for this he asks to send the form. The customer fills in the document, using, among others, personal ID details. An additional option for checking the borrower effectively is by requiring a bank transfer. Such an operation can only be carried out from the applicant’s account. Transfer from a third party account is not possible. The verification amount is usually symbolic and amounts to PLN 1 or PLN 0.01. The next way to verify is the Instantor service, which shortens the entire process.
The next stage of checking potential borrowers is to check the register of debtors. Loan companies, like banks, do not want to provide financial assistance to people who are insolvent. For this reason, they use various types of registers monitoring creditworthiness. Registers of debtors provide reliable information so that the lender can immediately decide whether he intends to grant a loan to a person or not. The most frequently used databases are BIK, ERIF and KRD.
Quick loans – minimum formalities
Payday loans and quick installments are a very comfortable solution. You do not have to queue or unnecessary formalities. Many non-bank institutions offer online loan applications. Is it easy to take a quick loan? Definitely yes. In the form, you only need to provide your basic data, such as: name, surname, PESEL number and the number and series of your ID card. If the borrower conducts business activities and incurs liabilities on the company, he is additionally obliged to provide his company name and tax identification number. Then, in order to contact the consultant, provide your telephone number and email address. The last stage is waiting for the decision and payment of financial assistance. Loan companies usually transfer money very quickly. In many cases, the desired loan appears on the customer’s account within 24 hours of submitting the application.
The big advantage of this type of loans is the fact that non-bank institutions do not require their clients to specify the purpose for which the money is to be allocated. It is a very comfortable solution because you can apply for financial assistance for any chosen purpose.
What do non-bank institutions offer?
The offer of non-bank institutions is very rich. The quick loans industry is developing very dynamically and offers a lot of interesting solutions. There are more and more entities offering quick loans on the market. That is why lenders adapt their offers to current trends. New amenities and attractive promotions mean that even the most demanding customers can be satisfied. One of the most popular options is the first free payday payday loan. Such a proposal is addressed to people who decide for this type of financial support for the first time. In this case, customers do not have to worry about additional fees. They pay exactly as much as they borrowed, remembering to pay back on time.
Some loan companies provide car loans. In such cases, it is sufficient to have a suitable vehicle. Requirements for the car vary depending on the lender. Most often, the car cannot be older than 14 years and must be registered for the loan applicant.
Use reasonable judgment when borrowing. Many people take loans pay attention to emotions and act on impulse. In this case, it’s very easy to lose control of your finances. With unreasonable borrowing, you can get into a debt spiral. This is not a pleasant situation, because in order to pay one liability the borrowers take another one. To avoid this situation, it’s best to reduce expenses and spend money on the most important needs. A good idea is to make a list that includes all fixed fees. With this solution, you can get an idea of what we are spending money on and minimize the risk of insolvency.