Non-bank loans – online payday loansOn March 20, 2020 by admin
If your intention is to take out a non-bank loan in the near future in a company offering so-called “instant loans”, “payday loans” or ” quick loans without Credit Information Bureau”, be sure to read this article and think again.
On each side are flooding us offer short-term loans to non-bank called online payday loans. There are many companies offering such a solution to the Polish market and they are often called parabanks.
They earn a lot, but they also bear a high risk by lending money to people with a poor credit history or without income certificates. Leaflets with offers of payday loans can be found everywhere: on the street, in the staircase, behind the car wiper, but also on the Internet.
Advertisements for online payday loans
On television or on the internet encourage people who are in need to take out loans. The ease of obtaining a small loan without certificates, without collateral, and even without checking your credit history Credit Information Bureau makes them very popular.
Online Payday loans are definitely more expensive than bank loans. However, no bank will grant any loan for such a short repayment period, which is a maximum of 30 days – completely online and in a few minutes.
According to statistics in the US, about 60% of loans go to customers using these services at least 12 times a year. This means that people using payday loans are very difficult to get through without taking out more loans. Because it is easy to renew such a loan, people often do it even before paying off earlier.
If you look at the APRC (real annual interest rate) given by lenders
It reaches up to 30,000% (yes, thirty thousand percent – this is not a mistake). As the cost of the loan, this is really a lot. However, customers are unlikely to pay attention to these percentages. The expenses they have to cover with the loan are important for them.
The Anti-usury Act imposes certain restrictions on calculating the costs of so-called parabanks, but these companies earn from various additional fees. This is, for example, insurance or home service.
The application is simple, by abandoning some of the services offered under the loan (e.g. home service), we can significantly reduce the cost of debt. Then, unfortunately, the payment will be delayed and the company that gives us the loan may require an income certificate.