Monthly Archives: December 2019

How do you apply for a loan online?

Before entering into a loan installment contract online, you should carefully read the offer and think about all the pros and cons. The online loan granting process is now virtually fully automated. Just a few steps to get quick cash. Below we present the application procedure.

What information must the loan application contain?

What information must the loan application contain?

Everyone can apply for an installment loan, but you must meet a few basic conditions to get it. First of all, all non-bank companies require the borrower to be of legal age and possess Polish citizenship. There are also more and more offers in which it is not enough to be 18 years old, a frequent requirement is to be 21 years old. If these conditions are met, you can proceed to submit the application. All you have to do is log in to the online portal of the loan provider and complete the loan application. You will need your ID card details, email address and phone number, and sometimes your bank account number. Importantly, it must be the applicant’s personal bank account (it cannot be, for example, an account that other co-owners also have). Both the account number and the mobile phone number will be used to verify the applicant’s identity.

However, what if the applicant does not have a bank account or does not have access to the Internet? Loan companies can also apply for a loan over the phone, and the lack of an account can be compensated by using a Giro check. The consultant guides the client through the entire loan application procedure. So it turns out that the only technical requirement necessary to obtain cash is a functional mobile phone from which you can make voice calls and receive an SMS. In the event of any difficulties in completing the application, qualified consultants in the call center will help.

Where can you get a quick installment loan online? Here are our hints!

How do banks verify their customers?

How do parabanks verify their customers?

Since installment loans can be applied for online or by phone, there must also be two separate ways to verify customer identity. The first of these is the so-called verification transfer. To check if someone else is impersonating the applicant, the loan company will ask you to make a symbolic transfer of $ 0.1 or $ 1.00. After the verification process, this amount will be refunded to the customer.

There are other methods for verifying customers when borrowing online through installments. A loan without a penny transfer is a solution that will appeal especially to people who have a debit account or do not want to wait for the verification transfer to be credited. Identity checking can be based on the data that the customer provides when logging into his bank. It is a completely secure method, using SSL encryption tools. In addition, it does not require installing additional applications on the phone, which also allow you to confirm the identity of the customer.

What if the applicant does not have a bank account? The loan companies have also found a solution. The method of receiving cash via a Giro check comes in handy. With its help, the money from the loan granted can be taken at any post office. If the loan application was submitted by phone, the identity of the borrower will be verified by a postal worker, who is obliged to show both the ID card and the unique cash collection code. The code is sent via SMS after obtaining a positive decision on granting the loan.

Analysis of customer data in BIK and KRD

Analysis of customer data in BIK and KRD

Less formalism is an undoubted advantage that distinguishes loan companies from banks. Therefore, when applying for an installment loan online, in most situations you do not have to be afraid that the loan company will ask you to provide certificates whether it is about your income or permanent employment. In almost every situation, all you need is a customer statement on the subject. However, loan companies must assess the risk of lending money to a particular customer. In this way, the company not only protects its interests against dishonest customers, but also protects the borrower against excessive debt. The most important information base for them about the client’s guarantee that he will repay the loan on time is data from BIK and KRD. Most companies check these registers and additionally use their internal databases.

Online loans without BIK and KRD are therefore more risky for the lender, hence the simple conclusion that the loan company must secure itself in some additional way, e.g. by requesting a loan guarantor, i.e. someone who undertakes to repay the loan if the borrower fails to do so . Almost always such loans will also bear higher interest, i.e. simply more expensive.

However, it is worth remembering that loan companies, guided by the principle of responsible responsible lending, will not grant a loan to a person who has negative entries in BIK and KRD. More information about responsible lending in the article – You want to take a quick installment loan – check what responsible lending is.

How quickly will I receive the money by taking a loan online?

How quickly will I receive the money by taking a loan online?

Loan companies know that people who use online installment loans care about time, hence many of them have fully automated their processes. That is why it is so important that the application is completed correctly. Even a small error, e.g. in the PESEL number, may result in rejection of the application by the company’s algorithm.

The time it takes to get your payout also depends on the type of identity checking method you choose. If it is a method with a verification transfer – after the application has been approved, the transfer with the loan will be sent immediately after the verification transfer has been posted ($ 0.01 or $ 1.00). In the case of a loan without a penny transfer, the money will be transferred immediately after making a positive decision on granting the loan (the whole procedure should not take more than 24h). In turn, with the Giro check, the client can collect money in person at any Astro Finance outlet. He usually has 10 calendar days to do this.

If you really need quick cash, you should look for the fastest installment loan offer to have the money in your account in 15 minutes.

It is worth remembering that the decision to incur a financial commitment is a serious matter. You should always rethink and re-calculate whether in a given situation a loan will definitely be the best and the cheapest solution. It is worth using the services of proven reputation companies that comply with the principles of responsible lending. It is a good idea to use online comparison and loan company rankings, thanks to which you can easily and quickly compare offers of many companies.

Sms loans vs Private loans

Basically, a sms loan is a type of private loan since the definition of private loan is that it is aimed at private individuals, does not require any security and is used for consumption. However, there are some differences between regular private loans and sms loans.

 

Sms loans have faster processing times

Sms loans have faster processing times

You probably know that it usually takes up to 24 hours to get a definitive response to their loan application when you apply for a private loan. Then it takes up to 3 banking days for the money to be in the account after the loan agreement is signed and has reached the lender. It may not matter that much if you are going to borrow a larger amount of money and / or want a low interest rate, but if you need to borrow money quickly, it is of course taken for too long.

Many loans are already paid on the same day if you make your loan application in the middle of a weekday, otherwise you will receive the loan the following weekday. In addition, there are many lenders who pay sms loans directly to certain banks, which means that you can get your money right after the loan application is approved. These loans can often be paid on weekends.

 

Sms loans have lower requirements

Sms loans have lower requirements

Most private loans have quite high requirements, you often have to earn at least USD 120,000 – 200,000 per year depending on the bank and you may not have any payment notes. If you do, you can, in some cases, only borrow smaller sums. This means that you who do not earn so much and / or have a payment note are not able to take a regular private loan, but it is not at all impossible to take a sms loan in these circumstances.

There are many sms lenders that you can apply for a quick loan with payment note at and most have fairly low income requirements. Sometimes it can be enough to earn around USD 20,000 – 50,000 / year to borrow money. 

 

Sms loans have a higher interest rate

credit loan

Sms loans have a clearly higher interest rate than private loans, which is because:

  1. The loan is smaller and has a shorter maturity. It would simply not be profitable to lend say 3,000 USD for 30 days and offer the same interest rate as a private loan.
  2. Sms loans entail a higher risk due to the lower loan requirements.

But many times a sms loan doesn’t have to be that expensive because the loan is small and the term is short. For example, you can borrow USD 3,000 and pay USD 100 – 200 for it, plus you can find sms loans that are completely free. Then you only pay back what you borrowed and not a penny more.

 

Sms loans are smaller and have a shorter repayment period

Sms loans are smaller and have a shorter repayment period

Pay day

When the fast loans went through, the amounts that were lent out were rarely greater than USD 3,000 – 6,000, but that doesn’t really look like today. Today, there are many sms lenders offering fast loans of up to, for example, USD 12,000, 20,000 or USD 30,000.

However, larger loans usually have a longer maturity (ie the time between the day you took out the loan and the day the loan is to be repaid) than the smaller loans. The purpose is to facilitate the borrowers’ ability to repay the loan. The lowest amounts usually amount to USD 500 or 1,000, but there are even lower loan amounts than that. Typical maturities for sms loans are usually between 14 – 90 days, but some lenders offer maturities of up to one or two years.

 

Consumer Lending

This type of loan is also called interlibrary loan and is one of the most common types of loan. The interest rate on a private loan is also relatively high, for example, when compared to a mortgage, since the loan in question has no collateral. A typical private loan from the bank has previously been around USD 10,000 – 350,000, but can vary widely between amounts today. Today there are private loans up to both USD 400,000 and USD 500,000 and some private loans can be only USD 5,000.

The repayment period here differs from the fast loans. When you take out a private loan, you can repay it in about 1-12 years. However, you should keep in mind that the loan becomes more expensive the longer the repayment period due to interest costs.

If you need to borrow less than USD 5,000 or USD 10,000, then sms loans are your only option, but if you want to borrow larger amounts, ie you have thousands or hundreds of thousands of USD, you must take a private loan.

How to check if the online loan is safe?

When we decide to get a loan in installments from one of the many non-bank financial institutions, we are often concerned about security issues. Unnecessarily, because the activity of loan companies is regulated just like the activity of banks. There are many registers in which you can verify the legality of each entity’s operations.

What else should you remember when applying for an online loan? What information to verify?

1. See the National Court Register and the KNF warning list

1. See the National Court Register and the KNF warning list

The first step to check any company that offers installment loans should be to verify it in the KRS database. The National Court Register is nothing more than a database of enterprises, associations, foundations, and even social and professional organizations. The obligation to have a KRS number is imposed on the entities mentioned by the Act of 20 August 1997 on the National Court Register.

Checking the company offering installment loans in the National Court Register will allow us to verify the legality of its operation, but it will not guarantee ethical and proper treatment of customers and compliance with the regulations. However, do not worry too much about it, because you can easily deal with this problem. It happens that the Polish Financial Supervision Authority has reservations about the way a particular entity operates, which it informs the public about. Among other things, it is worth having a look at the list of warnings kept by the Polish Financial Supervision Authority before signing the loan agreement. We will find there entities which the Polish Financial Supervision Authority has more or less serious doubts or objections. The presence of the loan company of interest to us on the list of warnings should therefore alarm us and make us reconsider the decision to use its offer.

In addition, you can check whether the lender we choose belongs to Lite Lender and whether the non-banking institution has recently carried out an ethical audit. Obtaining the Ethical Certificate is a confirmation of compliance with high ethical standards in line with the idea of ‚Äč‚Äčresponsible lending and respecting the Principles of Good Practice (ZDP), developed by ZPF. The ZDP document is a set of obligations for financial institutions that are based on moral standards and applicable legal provisions.

2. Check the Register of Loan Institutions

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The Consumer Credit Act of 22 July 2017 introduced an obligation for companies offering installment loans to be entered in the Register of Loan Institutions. It is kept, similarly to the list of public warnings by the Polish Financial Supervision Authority, and its occurrence requires the fulfillment of a number of formal conditions.

Considering the above, checking the company in the said register should be another element of verification of the lender. We should remember, however, that the mere presence of an entity in the register is not synonymous with its positive assessment by the PFSA, but only a confirmation of compliance with the obligations imposed by the legislator.

3. Verify opinions about the company offering installment loans

3. Verify opinions about the company offering installment loans

We will definitely learn more about the principles of the subject’s operation or his approach to the client’s needs and expectations, from people who had the opportunity to take advantage of his offer. If someone from our relatives applied for a loan at a given loan institution, be sure to ask them for opinions. What if we can’t count on such support from our friends? It is worth looking for recommendations on the Internet. There are many websites where individual loan entities are evaluated. Reviews are also available on financial online forms, so don’t forget to look there.

4. Carefully study the offer

4. Carefully study the offer

A cash loan is a financial product with very simple operating principles. If, when analyzing the offer of the selected entity, we are not able to accurately verify the actual cost of financing, consider choosing another company. The installment loan offer, as well as all related costs, should be clearly and clearly described or explained by a company employee. If, despite in-depth study of the loan agreement and the table of fees and commissions, we are not able to understand the principles of calculating fees or the mechanism of the installment loan itself, let’s use the offer of another entity. Honest companies clearly communicate the amount of real financing costs, offer calculators to quickly calculate them, and avoid complicated and difficult to understand formulas and constructions in their loan agreements.