When thinking about a loan, many people first come to the bank’s head. Is it really the best source to borrow money? Doubts arise when the consumer is looking for a quick loan and he wants to settle formalities quickly.
The motivation to take out a loan varies. First of all, they finance the purchase of a car (21%) and furniture and other home furnishings (18%). However, it also turns out that as many as 17% of our countrymen incur loans to repay their earlier liabilities to financial institutions, and 12% – for unforeseen expenses. However, in the case of low-value loans up to PLN 2,000, the offer of loan companies is the leader. It is worth taking a look at the factors that determine the choice of loan offer:
If we analyze the factors that the borrowers are guided by choosing between the offer of banks and loan companies, it is easy to understand why extra-bank lenders are gaining an increasingly stronger position in the financial market. – Customers are increasingly appreciating the high speed of lending, and in this respect loan companies are really unrivaled. Strongly limited formalities are also the main advantage of non-bank loans.
Both commercial and cooperative banks operate in Poland. Most of these institutions have a very developed network of outlets in which they serve clients. It also has effects on how they work. Although banks boast that they are more and more innovative, at the same time most of them are very attached to the traditional customer service model. This means that most often you have to go to the bank branch in person to arrange all the formalities related to the loan. You also need to prepare for queues at bank branches right away.
The need to make time for a visit to a bank is not an inconvenience. Banks are very restrictive in assessing the credibility of clients, which is a consequence of their regulations (eg Banking Law). This results not only in the fact that it is difficult to borrow money there, but also another inconvenience, which means complicated, long-lasting procedures and formalities. As a result, if you want to take out a loan in a bank, you have to prepare a lot of documents, while in the best case, we will wait a few hours, sometimes even days. It is worth noting that the longest formalities are ongoing compared to new clients. How do loan companies fall out of banks?
The offer of loan companies
Fast loans are associated primarily with loan companies and this is not at all the case. Such lenders primarily focus on the maximum shortening and acceleration of loan formalities. Most loan companies offer their loans mainly via the internet, sometimes also over the phone. This eliminates the need to appear in outlets and saves time. The offer available via the Internet also means that you can use it using a smartphone, regardless of where the customer is located (eg at a bus stop while waiting for a bus). Therefore, easy availability is characteristic of the offer of loan companies.
Another issue is the speed of the loan, which is crucial for 41% of borrowers, quoted above. In the case of loan companies’ offer, the formalities are limited to the minimum, in many cases, a statement of income instead of a certificate is enough, and most often a dozen or so minutes are waiting for the decision to grant a loan. It is also important that the money is usually transferred the same day to the borrower’s account. In this case, you can actually talk about a quick loan.
Where do they check BIK and BIG?
At the end it is worth to raise one more important issue, which is worth paying attention to, taking a quick loan. Some people, especially those who have a problem with repayment of loans and who have bad credit history in the past, argue that it is better to use the loan company offer, because no one verifies the client there. This is not true. Let us not delude ourselves, no one will lend money to an unbelievable person, not sure that he will regain it. Yes, there are non-bank offers where you can read that the money is borrowed without any verification, without BIK etc. First of all, this is not always true (the lender can check the customer in the debtors’ registers instead of BIK), and secondly – if not really has reliable verification, it is usually very expensive to borrow money.
Today, not only banks, but also reliable and well-known loan companies check their clients in BIK and debtors’ registers. As a result, they can offer a cheaper loan because the risk is lower. This situation also benefits the client – financial institutions protect him from excessive indebtedness and falling into big trouble.
If we really want a quick loan, then it is worth paying attention primarily to the offer of loan companies. There, the procedures are not as complicated as in banks, but this does not mean that our creditworthiness will not be verified. However, regardless of whom we borrow money from, we should do it sensibly, after analyzing various offers.