More affordable and faster non-bank loan also without a register and proof of income
Non-bank loans are relatively fast and easy to settle, much more affordable than bank loans, which are subject to much more detailed and deeper creditworthiness testing and proof of income. They may also be available to people with a record in the registry if the client has acceptable creditworthiness and the record is not serious. Especially for small loans, companies report that they tolerate registers. The registry is not the only parameter for approval. Another plus is the speed of processing and approval. Usually the client receives the money immediately after the loan approval and most of it to the account.
Money from private entities
Non-bank loans are virtually everything except loans from banks, ie institutions with a banking license. All other credit products can therefore be classified as non-bank loans. It is obvious that this is a very broad term. The providers of these loans are well-established non-bank financial houses, specialized institutions or private investors. They all offer their free funds as loans on the market.
Advantages and disadvantages
The general benefits are greater availability and a faster rate of money. Especially smaller amounts. The disadvantages vary depending on the providers, which are the whole spectrum and do not generally apply to all. In the non-banking field we find very serious providers, but we can also come across a company of inferior reputation.
- Greater availability
- Faster check-in
- Wider range
- Available in small amounts
- Operational assistance before payday
- First microloan free
- They may be more expensive by type
- I may be risky according to the provider
- More confusing (for small businesses)
Risks of non-bank loans
The non-banking sector is thus very specific. You can find solid companies here, but also a non-solid company that only wants to capitalize on the ignorance of a few even desperate people and then no one will hear about it. The most frequent clients of non-banking lending institutions are people who usually need non-purpose funds in the short term. Another client can then be one that already has a record in the registry or with problematic income. All of these meet the non-banking sector in the form of various non-bank loans, which lend to almost everyone. An important parameter for approving a loan is assessing your ability to repay.
Problems may arise during repayment. In the past, many institutions have tried to include paragraphs in small letters in contracts, not to inform clients about rates and total costs, or to leave them uninformed. Beware of such companies. It is the law that the company or investor must do all these activities and sufficiently inform the client. Large established institutions have not had a problem with this for a long time, but small investors lending only a few tens of thousands of crowns may have completely different practices and contracts. With the new Consumer Credit Act, the situation has already improved.