This option has many benefits and is a genuine alternative to bank loans. In this article, we present all the advantages of private loans from non-bank institutions and explain each benefit of this option.
Minimal Formalities
The first advantage and benefit of private non-bank loans is the minimum number of formalities we must complete to receive such a loan. If we take out a payday loan or an installment loan, we can do so entirely online without leaving home. This is a very convenient and comfortable solution. Without appearing in person at a bank, we can submit an application and receive the money. The entire process takes only an average of several dozen minutes, which is truly an express pace. To take out a payday loan or an installment loan, in most cases we also do not need to provide employment certificates confirming our income and earnings. If we borrow amounts of up to several thousand zlotys, a declaration that we earn a given amount of money is sufficient. This step significantly simplifies the entire process. All documents and the agreement are completed electronically, which also takes only a few minutes.
Few Requirements
One of the greatest advantages of private non-bank loans from financial institutions is the very small number of requirements that must be met to receive such a loan. Private loan companies are not required to comply with banking law because they are not banks, and they may grant loans under more liberal conditions. In practice, they set their own requirements, which are often low and achievable even for people earning less than the minimum wage. Several companies on the market also offer loans to unemployed or indebted people, something practically unthinkable at banks.
Such low requirements are highly beneficial to customers, who do not have to improve their creditworthiness through various measures and receive the desired amount of money practically immediately. Compared with banks, where we must be in good financial condition, private non-bank loans are a very good alternative. With similar interest rates and loan terms, we can obtain a loan without meeting so many requirements. The basic requirements of loan companies include being at least 18, or 21–22, having stable employment, and having no debts or entries in debt databases. People earning the average national salary or having high incomes may also qualify for very large loan amounts.
The Credibility of Private Lending Institutions
Today, one of the major advantages of private non-bank loans is certainly their credibility and reputation. This — especially several to a dozen or so years ago — could raise some concerns. Today, many loan companies operate openly, have many customers, sponsor sports teams, or advertise on national television. Nowadays, reports of, for example, extortion or fraud at such companies, or actions to the detriment of customers, are very rare and generally concern only the smallest and most anonymous companies. The largest private loan companies have a reputation similar to that of banks and enjoy a high level of trust. When taking out a payday loan or another loan from them, we do not have to fear illegal activity. There are also many mechanisms for monitoring such companies, which want to operate legally and offer, for example, private loans on a mass scale. Therefore, if we check whether a given company is on the KNF blacklist, whether it belongs to the Polish Association of Loan Institutions, and what opinions about it can be found online, we can take out such a loan without major concerns. It is also particularly worthwhile to choose the largest companies, such as international ones operating throughout Europe.
A Wide Range of Private Loans
Private loans are offered by financial institutions operating on the Polish market and often also throughout Europe. Such companies try to offer their customers loans tailored to their needs and competitive with bank loans. As a result, we can benefit from another advantage: the wide range offered by private loan companies. Non-bank institutions offer short- and long-term loans. This means we can borrow money for anywhere from several dozen days to several years. Such loans may also be available in various amounts — from several hundred zlotys to even tens of thousands. Private loans are also often offered for specific purposes, such as payday loans, installment loans, car loans, consolidation loans, and so on. This allows us to tailor the best solution to our situation. Private loan companies also very often offer numerous promotions and various bonuses. Thanks to them, we may qualify, for example, for attractive interest rates, a payment holiday on request, or popular free payday loans, under which we repay only as much money as we actually borrowed from the loan company. This broad and interesting offering is becoming increasingly strong competition for banks, which do not always have such offers available for their customers.
Are Private Non-Bank Loans Worth Taking?
The answer to this question is yes, and if we are considering taking out such a loan, it may be a solution worth considering. “Today, private non-bank loans are very similar to bank loans. Although they operate under civil law rather than banking law, they offer similar terms and sometimes even more benefits. If we carefully check the loan company and the loan offer itself is favorable, it is worth choosing this option. If we have concerns, we can use only the largest brands on the market and take out loans of no more than several thousand zlotys from them, rather than larger amounts.” — comments Adrian Tokarski, founder of the ERPPolska.pl loan comparison website.
We can also seek the opinions of internet users on relevant forums or social media and find out whether a given company actually operates as reliably as it claims.