One of the advantages of non-bank loans is the speed at which the customer can get money from the loan to their bank account. In many cases, even within a dozen or so minutes, you can get this payday loan. What will determine the speed of issuing a credit decision and the payment of money from a payday loan?
Extra quick payday loans
As the name suggests, payday loans are granted in a very short time, but not every customer will be able to take advantage of this simplified procedure for granting non-bank loans. The fastest loans are granted online, which require a remote contact of the client with the loan company. Especially if the customer does not use the offer of the same loan company for the first time. He can apply for a loan and receive a loan decision within a few minutes. If he has a bank account in the same bank where the account runs a parabank, he will receive a loan in real time.
It all depends on the customer and bank behavior
Often clients of personal loan companies complain that they cannot take out a non-bank loan at the time they would like. Nonetheless, payday loans are actually only available to customers who strictly follow the rules for providing payday loans, as indicated, for example, on the institution’s website. The condition for granting a loan in literally several minutes is correct registration in the loan system and verification of the borrower’s identity. This, in turn, consists of transferring to the account of a para-banking company, from the client’s personal account indicated in the loan application, a symbolic amount – 1 PLN or 1 penny. Thanks to this, the lender is able to check if the person applying for the loan is who he or she claims to be.
In addition, the borrower must send his application to the loan company, providing all the data desired by the parabank. Failure to do so unfortunately extends the time needed to issue a credit decision and to pay the loan.
Generally, lending companies, just like banks, cannot charge customers lending money from them interest higher than four times the Lombard rate of the National Bank of Poland. Currently, the Monetary Policy Council has set this rate at 4.00 percent, which is why the maximum interest rate on credit and personal loan obligations permitted by the Anti-Mortgage Act in Poland is 16 percent. per year.
However, the Act does not set an upper limit on the fees associated with the loan. Officially, therefore, she may have an interest rate of 16 percent. per year, but in practice the customer will have to pay a lot more for such a loan. The most reliable parameter determining the cost of a non-bank loan is the Annual Real Interest Rate. In many cases in Polish non-bank companies or lenders operating on the Polish market, the so-called payday loans, APRC loans can reach tens of thousands of percent. The borrower does not feel this because the loan is for example for a period of 7 or 14 days and its interest is lower than the borrowed amount. However, if you recalculate them on an annual basis, they would be many times higher than the loan amount.
A personal loan company must make a living by providing loans because its business is commercial. Therefore, in addition to interest, it may charge a number of other fees and commissions. At the beginning the customer will pay a commission for joining the loan. This is a certain percentage of the loan amount, e.g. 5% In addition to such a fee, the client pays administrative fees or a fee for delivering money to the address indicated. The largest costs will, however, be borne by the client of the loan company, when he wants to extend the loan repayment period, or without applying for its extension, he will repay the loan after the deadline. Each letter of debt enforcement and recovery sent is a cost to the customer, which is why non-bank loans can be very expensive.
On the other hand, many loan companies have the “First loan for free” promotions. If the lender repays, for example, PLN 500 in 7 days, he will not pay any interest or additional fees for his first loan. So he will return the lender as much as he borrowed.