Bank and non-bank loans – how does it differ?

Do you want to get a quick loan? Now, you can go to both the bank and the non-banking loan company for the money. What exactly do bank and non-bank loans differ from each other? Which one will be a better choice? Or maybe there is no difference in what we choose?

A cash loan is a quick way to raise money for practically any purpose. We allocate the funds obtained in this way, inter alia, for shopping, for a foreign trip, for the organization of an event, for the renovation of a house, for setting up a business, to mention only some possibilities.

Thanks to a cash loan, it is even easier to implement different plans, because the funds are often available immediately and on very convenient terms – sometimes even as evidence. This means that Poles are now so eager to take out cash loans. What’s more, now we can also get them completely online!

However, before we decide on a specific offer, it is worth choosing the right place in which we will make a loan application. Let us focus here on one point, namely the difference between bank and non-bank loans. What is worth knowing about them?

A cash loan not only from the bank

A cash loan not only from the bank

Many of us think that a loan can only be obtained from a bank. Nothing more wrong! A loan is a contract that we can conclude with many people and entities – not only with companies that operate in the financial industry, but also with private individuals, for example with someone from the family or friends.

Banks currently have the widest loan offer, but on the heels of them are also losing out-of-bank loan companies. They now offer their clients a wide range of short-term loans and installment loans, which we can get on favorable terms – even without having to leave the house. What’s more, a non-banking loan company can also ensure high security for its clients, so you do not have to worry about being a victim of fraud.

Therefore, for a cash loan, we can go not only to the bank today, but we can also choose the services of non-bank loan companies. But what exactly are the differences between such offers?

Especially for our readers we have made a detailed comparison of various banking and non-bank offers and we have prepared a list of differences and similarities between loans in banks and loan companies.

We discuss, among others, such issues as:

– How much money can you borrow and how long is the repayment period?

– How can you apply for a loan?

– What conditions must be met in order to receive it?

– How long does it take for a loan application to be reviewed?

– How do we get the money and how do we pay back the loan?

– What are the consequences of not paying the loan?

Cash loan in the bank

Cash loan in the bank

Let’s start with the cash loans offered by banks, as they are also the most popular ones. These are loans that we can get both as regular clients of a given bank, and we can go to a new bank to enter into a loan agreement there.

Currently there are many offers available, which we can also browse through the internet and easily compare them with each other, so finding a good loan for any purpose is not so complicated. Most often, the loan does not require security, but we can also choose mortgage loans.

Both individual and private individuals, as well as business customers who need quick cash for purposes related to their business, can use cash loans at banks.

The choice is therefore very wide – but what is worth knowing more about cash loans at banks?

Bank loan – how much money can you borrow and how long is the repayment period?

Due to the wide range of cash loans at banks, we also have a full range of limits and repayment period.

Generally, the maximum amount of cash loans in banks is around PLN 50,000 to PLN 100,000, but it may also be higher – this applies in particular to business customers, where the loan may amount to a maximum of PLN 500,000.

The mere fact of such a high limit does not mean, however, that it is available to anyone applying for funds. The creditworthiness, which is calculated individually for each client, is of great importance here. Therefore, people with lower creditworthiness may have a limit of around PLN 20,000 or PLN 30,000.

In the case of higher amounts and insufficient creditworthiness, the bank may ask for collateral, for example in the form of a mortgage or surety.

As for the repayment period, it usually amounts to 5-10 years, but we can also take out a loan for a shorter period. The minimum repayment time for loans at banks is generally 3 months, i.e. the debt is then repaid in 3 installments.

Many variants of loan amount and repayment period allow for individual adjustment to the applicant’s financial needs and possibilities.

Bank loan – how can you apply for a loan?

Bank loan - how can you apply for a loan?

Banks allow their clients to submit loan applications both at their stationary points as well as via the Internet. It is worth pointing out that we are not always able to obtain a loan completely online.

A loan that is completely online can be obtained primarily by regular bank clients who keep a bank account in it for a minimum period of 3-6 months. This is due to the fact that the bank then calculates the creditworthiness of the client based on its receipts and expenses on the bank account. Therefore, there is no need to provide additional documents confirming creditworthiness.

The bank then determines the maximum limit of the loan available on the spot, which we can receive online, without the need to go to the bank’s outlet. This does not mean, however, that we can not borrow more. This is also possible, but we must then collect the relevant documentation to calculate the creditworthiness.

Some banks also allow online applications for people who are not yet their clients. Then, however, you should go to the nearest bank branch to sign the application there.

Bank loan – what conditions must be met in order to receive it?

There is a belief that to receive a bank loan you need to have high creditworthiness. Indeed, it is very important, but it is also worth pointing out that even with a minimum income, you can get a loan from your bank for any purpose.

The main terms of bank loans relate primarily to proper creditworthiness and adequate creditworthiness. What is hidden under these terms?

The creditworthiness is defined as the customer’s ability to pay the contracted liability along with its costs within the prescribed time. To determine creditworthiness, banks carry out creditworthiness analysis, which takes into account such parameters as:

– the amount of income earned and its source

– monthly maintenance costs and other expenses, for example rent, bills, other loans and credits, alimony

– family situation, including the number of dependents

– education and profession

It is worth noting that each bank has slightly different patterns of calculating the creditworthiness of the client, so it may happen that in one of them we will receive a cash loan without problems, in another we will meet with a refusal.

The second important condition to meet in addition to the proper creditworthiness is also adequate creditworthiness. This term in turn refers to our level of trust, i.e. whether the lender can trust us when borrowing money.

When determining creditworthiness, the so-called credit history is taken into account, which shows whether the previous and current possessed debt was regulated in a timely manner. Where do banks get this information from? They use special BIK databases for this purpose – the Credit Information Bureau as well as the BIG database – Economic Information Bureaus as:

– Biuro Informacji Gospodarczej InfoMonitor SA

– ERIF Biuro Informacji Gospodarczej SA

– KRD – Krajowy Rejestr Długów Biuro Informacji Gospodarczej SA

BIK databases contain both positive and negative information about loans taken, loans, debits and credit cards. If we conscientiously paid off our liabilities, our credit history will also be positive, which will be an additional plus when applying for another loan. However, when in the past we had some delays in payment or we abandoned it at all, then it does not prove us well and we can meet with refusal.

In turn, in BIG databases we find mainly negative information, which are related to various debts, for example resulting from unpaid maintenance, fines, invoices, utility bills, rent. The data contained in these databases may also reduce the creditworthiness and lead to a negative decision of the bank.

Of course, when applying for a bank loan, we must also meet basic conditions such as a valid ID card, residence in the country. In the case of companies, it may be necessary to present registration and accounting documents.

Bank loan – how long does it take for a loan application to be reviewed?

In general, banks should ensure that applications for cash loans are processed as quickly as possible. Today, you can receive a response to your request even within a few minutes, both on-line loans and at the bank’s outlet. This is due to the fact that banks use specialized systems analyzing applications automatically, which are able to determine immediately whether a loan can be granted.

However, if there are any problems, for example with insufficient creditworthiness or with errors that crept into the application, the time of its consideration may be prolonged.

Bank loan – how do we get the money and how do we pay back the loan?

If we submit an application at a bank’s stationary facility, we can usually get a loan either on account or as a cash payment. It is worth pointing out, however, that cash withdrawals are only made up to certain amounts – when we exceed the limit, the bank will transfer funds to the account number indicated.

When we decide on an online loan, then the paid out bank account number is paid.

The loan is repaid in accordance with the schedule to the indicated bank account. If we borrowed the loan from the bank where we currently have an account, the installment can also be charged automatically on the designated day by blocking funds on the account. When we have a loan from another bank, we can make a transfer or deposit cash in the bank window or post office.

Bank loan – what are the consequences of not paying the loan?

If we do not repay the cash loan with the bank on time, we are threatened with penalties, which are included in the loan agreement.

From the very first day criminal interest is charged for late payment. The bank may also start sending monies, which may be payable and cost from a few to even several dozen zlotys.

If we do not pay the obligation, then the case may be referred to debt collection, and then to the court and the bailiff. Of course, our data also goes to the debtors’ databases and then they can be a serious obstacle in incurring further obligations, and even in signing contracts, for example for a subscription.

A cash loan in a non-bank loan company

A cash loan in a non-bank loan company

For a cash loan, we can also go to non-bank loan companies that operate in every major city. We also have the option of submitting online applications – this method of applying for non-bank cash loans is very popular today because formalities can be arranged without leaving your home or office.

There are many loan companies operating on the Polish non-banking market, which offer both payday loans and installment loans. We also have companies that offer mortgage loans where the mortgage is secured, for example, at home or in a flat. We can also meet with loans with other collateral, for example a surety.

We also do not have to worry about security – cash loans in non-bank loan companies are a safe choice, but to be sure, it is worth choosing those that already have an established position on the market.

Below we present detailed information about non-bank cash loans.

Non-bank loan – how much money can I borrow and how long is the repayment period?

In comparison with bank loans, non-bank loans are usually lower and they are characterized by shorter payment repayment periods. We have, as mentioned earlier, installment loans and payday loans.

Weekday loans are loans that allow you to get quotas from 100 zlotys to a maximum of 3,000 zlotys, 4,000 zlotys or 5,000 zlotys depending on the non-bank company. We pay the loan back within one month – 30 days. This means that it is a real loan for the moment, which works best when we have only a small hole in the budget for patching. Borrowing loans for higher amounts can be risky in people with low income.

The second option is installment loans, which are the same as installment loans offered by banks. The repayment period is then counted in months, but we also meet loan companies in which repayment takes place in weekly installments. The maximum amounts of installment loans are usually from PLN 5,000 to PLN 20,000, but on average it is about PLN 10,000. The repayment period is usually up to 2 years, which is shorter than in banks.

When submitting a loan application, we can also independently determine the repayment period for installment loans, which allows us to determine the most convenient amount of installments.

Non-bank loan – how can you apply for a loan?

Non-bank loan - how can you apply for a loan?

An application for a non-bank loan can be submitted in several ways – it can be done at a stationary point of a loan company, you can also do it via the internet, but it is also worth mentioning loans with home support.

Applying at a stationary point is similar to submitting an application at a bank – we write documentation on the spot, we show evidence and an employee of the company can even give us cash in paralysis of minutes.

Online loans are also very popular, which we can take without leaving your home or office. We fill out the application online and go through the chosen form of identity verification, which can be done by making a verification transfer from our bank account.

Attention! Some loan companies require the customer to sign a contract via courier. You can also use one more option, namely from GIRO checks, which are carried out at the post office – we show the proof and receive money from the loan in the post box.

The third option is a loan with home support. It is offered only by some loan companies. Then the employee of the company commutes to the customer to his house and signs a contract with him and gives him cash. In a similar way, he receives the installments – usually paid every week. Such a loan is, however, more expensive than loans at the facility and on-line.

Non-bank loan – what conditions must be met in order to receive it?

In general, they are not complicated and are often looser than in banks. This does not mean, however, that any non-bank loan can be obtained by anyone,

The basic requirements are a personal ID, address of residence in Poland, as well as having a source of income, for example in the form of a contract of employment, own business, pension or retirement. In addition, a positive credit history is often required, but we can also meet with loans without BIK. Security is generally not required – even at maximum totals. You also do not need to present work documents in general.

However, often non-banking companies do not check creditworthiness of customers as scrupulously as banks, therefore, even if we have small incomes, and even in the past we had documented arrears recorded in BIK or in BIG, we can get a cash loan.

In the case of companies, non-banking loan companies also have favorable conditions – a loan can be obtained without the need to provide documentary, accounting and banking documents.

Non-bank loan – how long does it take for a loan application to be reviewed?

As in the case of banks, the time for considering non-bank loan applications is very short. Currently, non-bank loan companies also have access to databases such as BIK and BIG, so they use them to quickly analyze the applications of their clients.

Therefore, we can have a loan decision after a few minutes, and a maximum of one hour after submitting the application.

Attention! When we perform verification through a standard transfer, we must take into account the bank to which we make the transfer. Standard interbank transfers are most often posted on the next business day, which may extend the time of consideration of the application. It is better to make an intra-banking verification transfer – to the recipient’s account in the same bank when it is possible.

Non-bank loan – how do we get the money and how do we pay back the loan?

Non-bank loan - how do we get the money and how do we pay back the loan?

In the case of fixed loans, the money can be transferred in the form of cash or as a payment to a bank account.

Non-bank internet loans are usually paid to the indicated bank account, but you can also choose a GIRO loan – then you receive the cash in the post box.

Home service loans allow you to receive cash in hand and in cash, you can also pay off your debt.

Repayment of fixed and internet loans takes place to the indicated bank account.

Non-bank loan – what are the consequences of not paying the loan?

They are basically similar to those in banks – statutory interest, prompts, debt collection, bailiffs. However, it is worth pointing out that some non-banking loan companies use much higher fees for calls than banks, so even a slight delay may result in a much higher debt.

Detailed information on the consequences of non-repayment of debt and the amount of penalties can be found in the loan agreement and in the documents attached to it.

  • Non-bank loan
  • Bank loan
  • Bank loan and non-bank loan

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