Short – term non – bank loan
A financial product that serves to overcome the acute financial crisis is exactly what this is a short-term non-bank loan. It is definitely not a solution that should be used every month.
In principle, it is clear that this is an emergency brake in the most urgent cases, everything must be considered in advance and the applicant should be well calculated how and when the money actually returns to the last pennies. If other options have failed, there is a rescue in great need, a non-bank loan is negotiated almost immediately.
High interest rates are actually driven by speed
The fear of lower client creditworthiness is obvious, but non-bank lenders are insured against something similar by raising their overall interest rates. Another safeguard is the late payment penalties, which sometimes reach really high levels. However, if clients repay on time, they will enjoy interesting benefits for the future. This does not change the fact that interest rates on non-bank loans are higher than those at the bank, for a number of obvious reasons.
Of course, responsibility should come first. The applicant has to think carefully about whether he really needs the loan. And secondly, it is also ideal to make a good choice, especially since there are dozens of potential micro-credit providers in our market, and not everyone of course comes with an exceptionally good deal.
How to choose a good provider?
Choosing the perfect business to collaborate with is similar to looking for a handy bathroom repairman. High-quality references play a prime role, but they also have to be carefully considered. Hidden cartoons? Will the craftsman say more than he originally promised? In such cases, it is up to you to come back again and ask for help. And the same is true in the world of non-bank loans…
It is also necessary to take into account the history, a dubious newcomer should have no role in the plans of the responsible borrower. On the contrary, a company that operates credibly – ie it has a stable Czech financial background and a domestic address and is well known – is completely different. This is where it pays to put your trust, without worrying, of course.
What really needs to be considered?
If you intend to arrange a loan that you will not regret, you have to think carefully. And ideally take into account some facts. Of course there is no talk about the best advertising slogan and the like. The main factor here is the speech of numbers. Interest, APR, possible extra fees, price list of penalties for non-compliance with repayment schedule and more.
- Interest But this is not all – you have to count with any fees. These will only be included in the APRC (ie the annual percentage rate of charge).
- Is the contract really short and very clear? There are no footnotes that fundamentally change the situation after reading?
- Do you get the benefits of paying on time? And is it possible to extend the entire loan up to a month for a modest fee? Everything has to be thought of…
The market is changing literally every day, so if you borrowed last year, the conditions may be completely different. On the other hand – loyalty is valued. Therefore, if you borrow from a non-banking company where you have already arranged a loan, the terms may be more interesting than the first time. In any case, today’s non-bank loans are only a matter of minutes, and their settlement is almost a turnaround. That is why you should spend more time thinking about them much more thoroughly. The one that has the greatest space in TV commercials or excels in the original color matching on its official website does not necessarily have to be the best on the market, which is perhaps quite clear to everyone…