The most popular product on the financial market is a cash loan. We can use it for any consumer purpose, and the lender does not have to be a bank. Cash loans can be granted to everyone, however, the most popular banks and non-bank loan companies are the bidders for this type of financial instrument.
And that’s very good because it’s best to take it to the bank. Although today there are many institutions on the financial market that grant various types of loans, the bank turns out to be the cheapest. However, in this case, it is also the most difficult to get money. The bank will always check the potential borrower at Credit Information Bureau and even at the National Debt Register.
The repayment period of a bank cash loan is from a month to even 10 years – depending on the bank’s offer. By default, banks propose an amount in the range from 500 to 150,000 USD, however, sometimes you can find offers from 300, 400 USD. Of all types of bank loans, cash loans are unfortunately the most expensive solution.
This is because the borrowed money can be used for any purpose – no one in the bank will ask what exactly to spend it on. A cash loan also does not require collateral, which is why the bank values its risk highly.
Bank offers are fundamentally different, so before you decide to take out a loan in a specific institution, it’s worth getting to know more details about a given proposal. Information about each banking product can be easily found online today.
However, it should be remembered that the cash loan is granted only by the bank and is subject to banking law. Each of us can grant a loan because her contract is governed by civil law. Therefore, in addition to banks, cash loans are also provided by non-bank companies called by some parabanks.
Non-bank financial institutions also took over the market in our country, and strong competition caused that the prices of loans declined significantly.
Non-bank loans are characterized by easy acquisition, quick payment of money and high granting. A loan in a parabank can also be obtained by a person with a bad credit history who would not be able to count on the bank.
The repayment period can be from 1 day up to several years, and the amount we can raise starts from USD 50. Plus are the numerous promotions offered by loan institutions. The most popular is the option of taking the first one loans completely free – no costs and hidden fees, which is addressed to new customers.
In addition to promotions, the costs of private loans are several times higher than the prices of bank debts, and the APRC (actual annual interest rate) can be as much as several thousand percents.
Each financial institution in Poland is obliged to inform about the APRC of the loan offered. APRC is a kind of indicator of the attractiveness of the offer introduced by the European Union. In addition to interest on the debt incurred, it also includes other costs related to obtaining the loan, such as commission, margin, and insurance.