A non-bank loan, ie a loan from a non-banking company, is a good solution to a lack of money if, for any reason, you do not want or cannot take a loan directly at the bank. These non-banking companies have significantly lower demands on clients than banks, and approving a loan is therefore shorter and easier. However, this advantage, on the other hand, is always offset by a significantly higher interest rate.
Obtaining a loan in this way is much easier than in banks. Thus, high-risk clients who would not be entitled to a loan at a bank for any reason can also apply for a loan from installment companies. Non-banking institutions rarely verify their clients in the register of debtors and at the same time do not even ask for proof of the client’s income, or guarantor, etc.
Non-bank loans – disadvantages
The disadvantage of non-banking companies is often insufficient provision of information to clients. The annual percentage rate of charge (RPMN), which these companies state for their products, is only indicative and the representatives of the institutions themselves point out on their information lines that the rate is calculated individually for each client based on the amount borrowed, its maturity and the amount of one installment. Another relatively common matter for non-banking companies is also the provision of not entirely complete information, for example, only the amount of monthly installments or only the minimum and maximum financial amounts they provide to clients are stated. The client often does not know about the annual percentage rate of charge, but also about the amount of interest or the amount of the installments themselves.
Basically, the point is for the non-banking company to get the client on its side before it can decide what is the most advantageous way for it. In other words – if the client requests complete information about the loan, he will be referred to the company’s credit counsel, who will be very happy to advise the client in a personal meeting and explain everything necessary. In addition, however, they usually convince the client that this loan is the most advantageous for him and they achieve the signing of a loan agreement.
Non-banking companies: Individual products differ more or less from each other
The basic conditions for a loan applicant are practically the same: age 18 – 60 years, citizenship of the Slovak Republic, permanent and verifiable source of income. In addition to the identity card, the companies also require another document confirming the applicant’s residence. Most companies provide loans up to a maximum of $ 1,500 (this amount is gradually increasing) and their processing takes place at the first meeting. The loan is usually set according to the individual needs of the client and the repayment period is set for a period of one to three years. However similar companies may agree in this area, they differ significantly in the cost of credit. The RPMN can thus range from 9% to 200%.
Setting up a loan itself is as simple as it can be, so that it is available to everyone and immediately. Which is very beneficial for companies and less so for a client who is in financial distress and the associated stress. The client can apply for a non-bank loan not only at the company’s branch, but also by phone or online, without which he had to leave the house.