Non-bank short-term loans via the Internet. Fees, commissions, costs related to non-bank loans. The activity of loan companies via the Internet makes it easier to borrow money from the non-banking sector.
Where can short-term non-bank loans be found and what factors affect the cost of such a loan?
Especially the so-called “Payday Loan.” These are usually relatively small amounts borrowed for a short period of time, usually not exceeding 60 days. There are many loan companies on the market, and thus there is strong competition, which makes borrowing money much easier than a few years ago. This does not mean that the costs of a non-banking loan are drastically falling. The total costs to be incurred when borrowing should be checked before signing the contract.
Non-bank loans – short-term search engine – loan companies
Short-term non-bank loans
1. Interest rate Nominal interest rate in accordance with the Act may not exceed four times the level of the NBP lombard loan rate. Currently, the interest rate on loans can not exceed 10% per annum (January 5, 2018). Many loan companies set nominal interest rates at 0%, because they earn on other, other costs that are included in the loans granted.
2. Fees and commissions. First and foremost, various types of fees and commissions determine the cost of non-bank payday loans. Each company defines its own tables of fees and commissions, therefore it is necessary to familiarize with them before signing the contract. Loan companies set fees, for example, for submitting an application, for considering it (it should be considered in particular), insurance, sent notifications, prompts and home services. Of course, fees are also charged for the extension of the repayment date of the contracted liability (so-called rollover). The amount of the fee for extending the loan depends on the loan company, the value of the loan and the time you want to extend the loan, as a rule these are 7, 14 or 30 days.
Non-bank loan … and why so dear?
The amount of some costs can be questioned, but … Customers are not forced by loan companies to borrow. Analyzing the purchase of a product, we can analyze whether it is worth buying, what is its price in relation to a similar product and whether it is too expensive for us. A non-bank loan is also a product, only financial. Loan companies sell it, they earn it. At the same time, they bear the risk of selling them to people with low creditworthiness, as well as incurring costs related to their business.