To mention non-bank loans, we usually mean popular payday loans with a repayment period of up to 30 days. However, not everyone knows that by using the services of loan companies you can also take out a long-term loan, repaid in monthly installments.
The amounts of non-bank installment loans start at several dozen dollars but end at several or even several dozen thousand. Although their costs are usually higher than the cost of bank loans, they are not as high as they were a few years ago. All thanks to the amended provisions of the Anti-usury Act, which entered into force in March 2016.
According to them, the cost of borrowing money cannot be more than 25% of the loan amount plus 30% of that amount per annum. The cost limits include all fees except interest. Their amount remained unchanged and is currently four times the Good Finance rate, i.e. 10% per annum. Depending on the company, the repayment period of a long-term loan is from a few to a dozen or even several dozen months.
Long-term loan offers – ranking
Select the type and parameters of the payday
Loan repayment date:
Find the best payday loans Good Finance loans 3.8 (75.56%) 36 ratings Loan amount: USD 1,000 / USD 15,000 possible Number of installments: 3 The amount to be donated: 1217 USD Cost of loan: USD 217 APRC 239% Opinion on Good Finance Take a payday loan Extension of repayment Late payment costs Additional information.
It is possible to postpone the repayment date of the loan installment by one month. In the case of a 24-month loan, this option is available 4 times.
A representative example:
The actual annual interest rate (APRC) is 78.6%; total loan amount (without costs credited) USD 7,500; variable interest rate 10%, total cost of the loan USD 8,712 (including commission USD 7,500, interest USD 1,212); total amount to be paid USD 16,212, payable in 36 monthly installments (35 installments of USD 450.33 and the last 36 installment: USD 450.45). Calculation for December 3, 2018. Granting a loan and postponing the installment repayment date depend on prior assessment of the applicant’s creditworthiness. Registration fee (refundable): 1 gr.
Good Credit 3.6 (71%) 40 ratings Loan amount: USD 1,000 / USD 25,000 possible Number of installments: 3 The amount to be donated: 1013 USD Cost of loan: USD 13 APRC 8% Opinion.
- You can extend the repayment:
- from 6 installments to 11 installments – 1 Postponement of the loan installment repayment date,
- from 12 installments to 17 installments – 2 Postponement of loan installment repayment,
- from 18 installments to 23 installments – 3 Postponement of loan installment repayment,
- from 24 installments – 4 Postponement of the loan repayment date.
- The lender has the right to take steps to clarify the reasons for delay and enforce payments, which involve making additional telephone contacts, sending you a letter, sending an SMS or a home visit.
- The lender has the right to terminate the contract and seek a refund of the claim in court or out of court.
- The lender has the right to sell the claim to a third party.
- The borrower may be charged with court and enforcement costs.
There are many non-bank institutions on the market that grant long-term loans. If you want to compare the offers of individual lenders and choose the one that best meets your expectations, analyze the above ranking of long-term loans. All companies included in the ranking are proven, reliable and competent lenders. If you want to quickly compare the above loan offers in terms of the minimum and maximum amount, available repayment dates and installment amounts, visit the installment loan subpage and use the loan comparison site.
The order of the companies in the ranking is not accidental. The highest is the most favorable (in terms of costs, level of granting, a sum that can be borrowed, repayment period and speed of procedures) of the offer. In the last column, next to each company, you’ll also find two hyperlinks – one leads to the given lender’s page, the other – to the description of the company.
By clicking the Additional information button you will learn the details of a given offer – terms of accession, award criteria, and other valuable information.
Choosing a long-term non-bank loan
Contrary to appearances, choosing the best long-term loan is not a simple task. Especially that there are many companies offering installments. Individual offers differ primarily in costs, maximum available funding and the repayment period. Before you reach for a long-term loan, analyze and compare individual offers. It may turn out that random selection will cost you a lot.
What to look for when choosing a long-term offer?
When choosing a long-term loan, pay attention primarily to:
- amount of costs. The costs of taking a long-term loan in the same amount may vary by up to several hundred dollars. When analyzing the offers of individual companies, first of all pay attention to the value of APRC – the actual annual loan interest rate. The lower, the less you will pay for the money you borrow;
- maximum loan amount. Not every company will lend you several thousand dollars. Especially if you have never used her services before. Before you choose a lender, make sure that the amount you need will be available to you the first time;
- withdrawal time. Some companies withdraw money within a dozen or so minutes, without having to sign the contract provided by the courier. Others require a personal signature of the document – delivered by courier or prepared for signature at the company’s headquarters. If you want to receive money as soon as possible, make sure which system “Your” company uses;
- requirements for borrowers. These may be more or less liberal. Although the procedure for obtaining a non-bank loan is definitely more friendly than borrowing money from a bank, some lenders may require additional documents in addition to your ID. If you want to reduce the number of formalities, use the services of the company providing loans as proof.
Loan: longer or shorter?
If you plan to borrow money from a non-bank institution, you will definitely have to choose between a short-term and installment loan.
The most important criterion that you should consider is your repayment capacity. If in 30 or 60 days you can’t collect the whole amount you need, choose a lifeguard instead of a payday loan. It is much easier to deal with repayment of a long-term loan by being able to spread the amount borrowed into several or several installments. Unfortunately, this decision is associated with higher costs than in the case of payday loans. Installment lenders do not offer free financing. You will have to pay for each zloty you borrow.
The next thing to consider is the amount of loan needed. When you reach for a short-term loan, you will not borrow more than a few thousand dollars. Especially if you are a new customer and you have never used a lender before. The maximum amounts of installments range from several to several dozen thousand dollars. Such an injection of cash will allow achieving much bolder goals.
If you are considering getting a short-term loan with a repayment period of 30-61 days, see our comparison of payday loans.
Long-term loans – is it worth it?
A non-bank installment loan is a good solution for people who need more than a few thousand dollars to implement their plans. Installment payments will also work for those borrowers who are unable to pay back the loan within 30 or 60 days. By paying off the commitment in installments you will minimize the risk of delays, the effects of which can be not only stressful, but also very expensive.
Non-bank lenders definitely look at less reliable customers than banks. For example, those with a negative credit history in BIK or entered in the register of debtors.
It is worth knowing, however, that the price for a minimum amount of formalities and a simplified procedure for testing creditworthiness are relatively high costs. Borrowing money from a non-bank institution can be much more expensive than borrowing from a bank.
Bank or loan company?
If we consider costs primarily as the selection criterion, the most favorable conditions will be offered to customers by banks. It is worth remembering, however, that the procedure for obtaining a bank loan is usually longer and more complicated than it is at a non-bank institution.
Banks also apply much more restrictive creditworthiness testing rules. If you have an unfavorable credit history in BIK or your data has been entered into the register of debtors, the chances of getting a bank loan are virtually zero. If you want to know how to check your BIK, read the article: How to check your BIK?
Non-bank lenders definitely look at less reliable customers. Many of them provide funding to people with low scores and to those who have been blacklisted as a result of debt. Loan companies also honor various, often non-standard, sources of income.
An installment loan can be obtained by a person who receives income from an employment contract, civil law contract, business activity, retirement or disability pension. Many companies also accept revenues from the Family 500+ program and even maintenance. And for many borrowers, this is a great asset.