Installment loans are a financial product offered by parabanks, which are becoming increasingly popular. They can be obtained by completing the formalities directly at the branch of the loan company or taken on the Internet within a few minutes. The cash obtained will support the household budget and allow to raise funds for necessary expenses. Despite the high popularity and increasingly attractive installment loan offers, many people are still wondering if they are a good and safe solution. To dispel your doubts, it is worth knowing what benefits an installment loan has.
Disadvantages of cash loans
Until recently, people in need of financial support went to the bank, where they applied for a loan. Cash loan is considered by many to be the best form of obtaining cash. As it turns out, however, taking it is not so easy. Statistics show that banks reject a significant number of applications. There may be many reasons for this, among others lack of credit history, too low creditworthiness, lack of stable employment and income, too many other obligations, untrue documents or incorrect fulfillment thereof. All this, as well as other factors, make you forget about a bank loan. Their first disadvantage, therefore, is the relatively difficult availability of the service. Only a few, who the bank will assess positively, can obtain cash loans. And you have to remember that banking verification is not easy – not only do you have to meet restrictive conditions, but also be patient and prepare numerous documents required by banking institutions. These usually oblige the future borrower to provide evidence of income, employment, monthly maintenance costs, current debts. Completing all the documentation is ongoing, it takes additional time for the bank to examine the application – which can take up to a month. In the case of a cash loan, there is no quick cash. Because of this, a bank loan is not for people who need quick cash support.
So before you apply to the bank, it’s worth checking how much money you have to earn to get a loan?
Long waiting times, formalities and difficult availability are not the only disadvantages of a bank cash loan. Issues that are equally important to the borrower include high costs, the need to take out insurance or other accompanying products (e.g. a personal account).
What is the difference between installment loans in a bank and a loan company? The answer can be found in this article.
Advantages of quick non-bank loans
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People who want to avoid the inconvenience of a bank loan should make friends with the installment loan. It is a product similar to a bank loan, but it is granted by non-bank companies. Installment loans also have many advantages. First of all, it is easier and faster to get it. Applications for non-bank loans can be submitted online, and verification takes only a few minutes. Money from an installment loan to the borrower’s bank account can be transferred on the same day, and can be used for any purpose: renovation, vacation, buying a car or household appliances, organizing a family celebration, etc. Equally easy as getting a non-bank loan is repayment. For the borrower’s convenience, the debt is repaid in several installments, payable monthly. The installments are set in the contract, as well as the dates of their payment. This means that repayment of a non-bank loan is not a heavy burden for the household budget.
In the article The fastest installment loan. Money on the account in 15 minutes. We advise on how to quickly get money to your account even in 15 minutes.
Fast cash is not the only advantage of a non-bank loan. It is also worth appreciating the ease of obtaining it. Loan companies do not require any documents confirming employment or the amount of income received. Installment loans in the amount of $ 10,000 – 15,000 can be obtained by anyone who has creditworthiness and has no negative entries in BIK and KRD.
What is the cost of the installment loan?
One of the main concerns of borrowers are the costs they have to incur if you want to get quick cash. These, however, do not have to be much higher than for a cash loan. If you want to know them, check the APRC, i.e. the Actual Annual Interest Rate. This parameter informs about the total installment loan costs on an annual basis. It includes both the interest rate, as well as commissions, margins, insurance, administrative or handling fees. APRC is expressed as a percentage and you can read it already at the stage of analyzing and comparing the offers of individual loans. If we want to accurately check the exact cost of our commitment, it is worth calculating the installment loan installment using a calculator.
Why is it worth choosing an installment loan?
An installment loan is a great solution for people looking for a way to get quick cash. It is worth to decide on it if you want to make a financial commitment conveniently and comfortably, e.g. via the Internet, while not wasting time on formalities. Thanks to spreading the loan into installments, its repayment is not burdensome for the household budget, and at the same time allows you to get significant cash. Most important, however, is that fast cash is available to almost everyone.
If you are interested in an installment loan, we invite you to familiarize yourself with our offer.