A small cash loan in a loan company or a bank? Is it worth using the services of loan companies and can anything be done to not overpay for a loan or a loan?
Loans and loans, not only cash, are very popular today. On the loan, we buy cars, apartments, household appliances or RTV. Can we say that we live on credit? To some extent, yes, because over 60% of an adult society has used at least one loan or a loan (banking or non-banking), has a credit limit or uses a credit card.
Before you decide on a loan or loan, think carefully whether such a source of financing is necessary and an urgent purchase? You can possibly put down your money and buy the item for a few months from the savings (or partially crediting it). Be sure to check your household finances (income and expenses) or endure expenses related to the loan installments.
Remember that the biggest problems with repayment of obligations relate to cash loans, non-bank loans, credit cards, and recently this problem also applies to mortgage loans.
In general, we use credits and loans when we temporarily lose liquidity, intend to purchase consumer goods, less often to allocate a loan for an investment purchase, for example a real estate or a building plot.
However, unfortunately, most often we borrow, because we ran out to the first, there was an urgent financial need, there was an unexpected failure or spoiled the repeatedly repaired washing machine. Then what? We go for a loan in a bank or for a non-bank loan.
Loan liabilities in loan companies
From the loan companies, we can distinguish stationary companies and very popular online loan companies. Non-bank loans alone can be divided into:
These loans are granted for a very short period, usually from 1 day to 1 month. The loan is returned to the lender’s account in one installment (loan amount + costs) within the period specified in the contract (in the bottom). Not every loan company offers the possibility of its extension.
It may also happen that an extension is possible, but in another loan company. That is, we must take a new loan and the loan repayment date is similar to the time it was given. The extension is payable (even if the loan was for PLN 0). The amount of the loan is then added to the previous costs and the additional cost associated with the loan extension.
The first loan for free
In such loans, it should be noted that loan companies use marketing activities to attract new customers. They rely on the fact that they offer the first loan for PLN 0 to a certain amount. In fact, it can be provided without charging for its granting. However, you should always check the entries in the regulations regarding such a free loan.
The vast majority of “first loan for PLN 0” offers is offered by Internet loan companies. Some of the loan companies do not charge interest because lenders mainly earn commissions and other fees.
An example of a moment
For example, for a total loan amount of PLN 1000 for 30 days, the administrative fee may amount to PLN 274.66 (27.46% of the loan value), interest for 30 days: PLN 8.33 (nominal interest rate of 10% per annum).
The APRC of such a loan is 1974%, and the total cost of the loan is PLN 282.99.
In the APARTMENTS, it usually amounts to several thousand percent – this would be the ratio of the cost of the loan to its amount if the repayment took place after a year. By comparing the two ‘payday loans’ for the same amount and time, the APY allows you to check which loan is cheaper. The RRSO loan is lower, the loan is cheaper.
INTERNET ONLINE LENDING TARGETS
Among installment loans, we can distinguish loans repaid in weekly as well as monthly installments.
There are several loan companies that allow you to pay off loans in weekly installments, mainly fixed-line companies. Most often, the loan is repaid within 12-52 weeks. In addition to the usual costs (interest, commission, other fees) there is also a housekeeping fee (installments of loans are collected at the customer’s home). It is usually a large part of the cost of the loan.
Always ask if it is possible to conclude a contract without having to use this service! If this is not possible, consider changing the lender.
Pursuant to the act on consumer credit, the APRC calculation does not take into account the services provided additionally, when it is not necessary to use them to obtain a loan (most often home services are optional)
INTERNET LOAN IN MONTHLY INSTALLMENTS
In recent months, non-bank loans have become increasingly popular in installments. 1/3 of loans granted by loan companies via the internet are installment loans. They are repaid in monthly installments.
The length of the repayment period depends on the loan company and ranges from 3 to 36 months.
Long-term installment loans are similar to bank loans, but are obviously much more expensive. Loan companies usually use maximum interest rates, commissions and various additional fees, e.g.
- advisory (?),
- also insurance, which may be obligatory.
It is best not to use loan companies that require payment before signing a loan agreement.