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Are non-bank loans expensive and dangerous? Or are they just myths? Read on and find out what modern instant loans really are
Services such as non-bank loans are enjoying considerable and constantly growing popularity in Poland. Seemingly, this should also cause an increase in knowledge of the sector of popular instant loans, and to some extent this is actually happening. Consumers know more and more about the mechanisms of loan institutions and are able to choose the most favorable offers for themselves.
Nonetheless, the non-bank loans via the Internet remains one of those services around which probably the greatest amount of myths of various kinds are being spread. Most of them are not only completely false, but also very easy to verify and debunk. So, together with Tamga's fintech experts, let's look at some of the most common myths about non-bank loans, as well as the main features that characterize instant loans using an identity card without payroll.
Non-bank loans - what are they and who uses them
Are instant loans for debtors the only or dominant form of fast non-bank loans? Of course not, however the press and some internet people often try to portray non-bank loans precisely as a kind of "lifeline" that only desperate and indebted customers would use.
In reality, modern instant loans are now simply one of the financial services. It is provided by reliable and verifiable entities, and the recipients are consumers interested in quick financing for smaller amounts with a simplified application and creditworthiness verification procedure. In fact, for the time being, the main difference between non-bank loans and loans from banks is contained in the name itself: the former differ from the latter in that instead of large banks, they often are provided by smaller entities. However, as we will see below, this fact also carries certain advantages.
TOP 4 biggest myths about instant loans
Myth one: non-bank loans over the Internet are provided without credit checks
This is a fairly common belief, strongly related to how instant loans for ID are portrayed by the mainstream press and the Internet. In fact, no reliable lending institution lends money to its customers without checking their creditworthiness. The difference with banks is that an online loan to an account is usually characterized by a more flexible credit scoring system, focused primarily on assessing the financial capabilities of a particular customer, rather than treating that customer as a mere representative of some category. For example, the well-known and award-winning online platform of the credit intermediary Szybka Gotówka has its own proprietary scoring system. It calculates the amount of the loan adequate to the customer's situation and creditworthiness. A loan tailored to the consumer's profile makes it easier to make timely repayments and avoid financial arrears, thus helping to build a positive credit history for the borrower.
Myth two: safe instant loans do not exist. A non-bank loan is always a risk
This belief stems from the completely erroneous assumption that non-bank lending is a domain that operates without regulation and, for good measure, any entity can become a loan company. In fact, a non-bank lender must first register its business with the Register of Loan Institutions at the Financial Supervision Commission. But once a company gains the status of lending institutions and an entry in the register, its operation must comply with the Consumer Credit Act, which is controlled by the Office of Protection of Competition and Consumers.
Myth number three: instant loans for ID without payslip is a "scam", some documents are always needed
This attitude is due to a misunderstanding of the business model of lending institutions, which are very different from banks in this regard. Companies providing non-bank loans over the Internet are focused on making all procedures as easy as possible for their customers. Does this mean a complete abandonment of verification of creditworthiness? Of course not. It's just that this verification is faster and more convenient for the consumer. The lending institution is usually satisfied with the data from the ID, residential address, telephone number, e-mail address, income statement and verification through services such as Kontomatik, Instantor and Wurmi.
Myth four: online non-bank loans are very expensive
If one judges the cost of a loan only by the amount of the APR, then indeed instant loans may seem expensive. However, the APR does not present the real, i.e. calculated in zlotys, cost of the loan, but only the annual percentage. We can be sure that a cash loan from a bank repaid in 60 installments will clearly turn out to be more expensive than a 30 or 60-day instant loan.
Instant loans - is it worth it and which offer to choose?
Everything that has been written above boils down to one statement: modern non-bank loans are a safe financial service that should in no way be viewed in terms of the so-called "gray area". Does this mean that it is "worth" using instant loans? This only depends on the decision of the consumer himself. Without a doubt, a quick loan without much paperwork can be a good option for someone who needs easy access to cash.
As part of the online platform of the credit intermediary Szybka Gotowka, loan applications are processed 100% online and the waiting time for a decision is just a few dozen minutes. Customers can also count on the option to extend repayment. On the other hand, Szybka Gotówka has various promotions for its regular customers, and from time to time contests with attractive prizes.
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