Non-bank loans can be very helpful in some situations. Many companies offer loans online, which is very convenient because we don’t have to go anywhere, and we do everything from our favorite chair at home. Online borrowing is a convenient solution because we can quickly move on to achieving our goals. It is worth remembering, however, that the decision to take a non-bank loan should first of all be very well thought out.
Like any financial product, online loans have their pros and cons. The former encourages people to take advantage of them, and the latter makes people wonder if this is a good offer for them. Below we present the pros and cons of this product.
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Each of us has an emergency, which requires an extra cash injection. Unfortunately, we don’t always have the money set aside for the right purpose. In such situations, it is worth to read more info from GreenDay and taking a loan from a non-bank company.
The non-bank loan allows you to make big and small dreams come true. Thanks to the loan, many people metamorphosed their apartments, bought a new bike for their child, or visited the most beautiful countries in Europe. Below are some of the benefits of online loans.
Contrary to appearances, non-bank loans have several advantages:
- Formalities limited to a minimum – a non-bank institution is not too demanding when it comes to formalities. Usually, all you need are ID card, income statement, application;
- Quick transfer of money to the account – the money is paid out in a short time, but after a detailed analysis of the borrower’s creditworthiness;
- The first loan for free – most loan companies “tempt” new customers to take advantage of their offer. The “lure” here is a loan for free. This means that if we submit an application for the first time to a company that has such promotion and pay the whole debt within the set time limit, we give back exactly the amount we borrowed;
- Loan for any purpose – when the borrower meets the conditions, the institution does not ask for what purpose it borrows money. This one can be completely arbitrary;
- Loans granted without guarantors – non-bank institutions usually do not need guarantors. An income certificate is definitely enough;
- Loan without BIK – some loan companies do not check the records kept by the Credit Information Bureau. This means that people who already have loans or have problems with their repayment can apply for a loan successfully;
- Online borrowing – the application can be delivered without leaving your home by sending it online.
Disadvantages of online loans:
Like any other thing in the world, online lending has its disadvantages. A loan, payday loan or loan is a financial liability that has its pros and cons. It is worth earlier to get a loan before taking out the disadvantages so as not to fall into debt. The most frequently mentioned disadvantages of such loans are:
- Short repayment deadline – the non-bank loan must be repaid in full in a fairly short time. It is usually 30 or 60 days;
- Small loan amount – due to one-off repayment, the loan amount is not very high;
- Financial debts – a loan is easier to obtain than a bank loan. This can lead to debt to some extent;
- The necessity of computer literacy – to get money, a person who wants to submit an application must know how to operate a computer and navigate the Internet;
- The need to have a bank account – the vast majority of loan companies, withdraw money only to a bank account. Therefore, to get money, we must have it .;
- High-interest rates and other costs – money is easy to get, but the loan costs are quite high. Here, the “something for something” principle fits perfectly.