Impact on the loan company – advantages and disadvantages.
Applying for a loan involves a specific procedure. Bank employees must check the creditworthiness of their customers, and therefore determine whether they will be able to repay the installments of the loan in a timely manner. This, of course, is associated with a longer waiting time for a credit decision, as well as the possibility of obtaining a negative response, because many banks do not include income received under a specific task contract or mandate contract.
For a considerable number of people, such a loan is therefore out of reach. Another equally important issue is the fact that banks are much more eager to grant loans for slightly higher amounts, and people who need funding for lower amounts of several thousand dollars are more likely to turn to loan companies. Customers who meet the required conditions and need larger amounts use the bank’s credit offer.
Can be split into convenient installments
People planning to take out a loan online should know that they have two options to choose from – payday loan or installment loan. Each of them is available online, but payday pay is a liability usually incurred for small amounts that must be repaid in a short time, often within 30 or 60 days. It is true that this time can be extended, but most often it involves additional fees. Installment loans via the Internet can be taken for amounts up to several or several thousand dollars, and the time for repayment is longer. The customer can set the amount of installments himself, which allows you to specify their amount at a level that does not significantly burden the household budget.
A common feature of both these solutions is the fact that there are not many complicated procedures and formalities, as in the case of a bank loan. Waiting for the money is very short, as is the decision to grant it. Customers do not have to worry that employment based on a mandate or specific work contract will result in rejection of the application, because it is not important for the lender.
Pursuant to the law in force in the country, companies offering online loans are required to fairly present their offer together with a representative example (ie such conditions, which are taken most loans from a given lender) for such an obligation. This allows the client to determine in a more reliable way whether he will be able to pay the loan installments regularly.
It is also worth knowing that non-bank institutions must comply with the so-called Anti-usury Act and the Consumer Credit Act. In addition, companies caring for their customers can boast of special certificates that testify to their reliability. So before making a commitment, it’s a good idea to compare at least a few offers and see which lenders are the most trustworthy.