Is a non-bank loan a usury? Certainly not, because loans granted by loan companies are a consumer loan. The Act on consumer credit precisely specify what is consumer credit and what are the rights and obligations of both parties.
By agreeing to a cash loan at a loan company, we know that it is a cash benefit that we must return in the future, most often in an amount greater than the loan granted. By signing a loan agreement, we agree with the terms of its provision. Remember that it is necessary to compare loan offers to choose the most advantageous one. By the way, we can ask:
Why are non-bank loans so expensive
Fact, non-bank loans are not the cheapest, but some important elements affect its price.
1) The main reason is that the average loans granted by loan companies are much smaller than loans granted by banks. This also applies to the loan period.
2) Loan companies are also much smaller entities than banking institutions and operate on a much smaller scale.
3) Let’s also pay attention to the fact, to whom they borrow money. The vast majority of customers of loan companies are people who will not receive a loan from the bank. Thus, the risk of a loan to such a person is higher.
4) Loan companies not only can not collect deposits from consumers (and thus loans can only be made from own capital), they also have a higher cost of obtaining them. Loan companies exist on the market because they provide loans on such terms as at present. If they were close to banking standards, then. they would cease to exist.
Myths about non-bank loans
One of the most frequently repeated myths (apart from the fact that non-bank loans are usury) is the one that concerns loans granted to poor people. And to those that do not get income. It must be clearly stated that without getting any income, we have no chance of getting a loan. It is said that only wealthy takes loans and credits. And there is something in it, because how else could it be repaid on time?
Loan companies are mainly used by young people with average remuneration, as well as pensioners. Why use? In the case of retirees and pensioners, the matter is quite simple: insufficient benefits. In the case of young people? Laziness? Comfort-? Non-bank loans are incurred for relatively small amounts. Perhaps it is better to ask the bank for an account limit or apply for a credit card? It will certainly be cheaper and with better repayment terms. Another myth is that loan companies lend to anyone who applies for a loan. On the contrary, only one-third of new applications are considered positively.
Non-bank loan without checking at BIK. Bad credit situation is the main reason for the rejection of the application. Loan companies not only check their prospects in BIK or BIG more often, but also in Credit-Check. The analysis allows rejecting the conclusions of those clients who might have problems with settling the debt.
Non-bank loan via the Internet
Currently, almost 50 percent. non-bank loans are provided via the internet. We can use search engines for loan companies and cash loans. We have a search engine for payday loans and a search engine for installment loans. Online loan companies, especially those associated in the ZFP, are very reliable in examining the creditworthiness of customers and will not give loans to a person in a difficult financial situation. None of the loan companies has an interest in risking too much of their capital by providing loans to people with financial problems that can additionally fall into the spiral of debt. It is too likely that the loan will not be returned and the customer will not return in the future anyway.