Long-term non-bank loans – what is worth knowing about them?

Long-term non-bank loans – what is worth knowing about them?

The popularity of non-bank loans, which can be obtained not only very quickly, but also thanks to a minimum of formalities, meant that these institutions began to expand their offer with other services. The popularity of payday loans resulted in the fact that parabanks began to offer cheap and fast long-term non-bank loans. They are loans with larger amounts spread over installments, up to 48 months. Much greater ease in obtaining such a loan in combination with a minimal amount of formalities makes this type of solution very popular.

What is worth knowing about long-term loans?

What is worth knowing about long-term loans?

While payday loans are granted in the amount from 1000 to 5000 dollars, long-term loans are granted even for several thousand. The procedure for granting a loan is very similar to the payday loans. You can get them even in 15 minutes, online and without leaving your home. Low income, no contract for an indefinite period, no certificates and even bad credit history do not have to be an obstacle to granting a loan, but everything depends on the rules in force in the given non-bank institution. It is worth taking a close look at the regulations, because these types of loans are subject to high risk, and therefore companies must protect themselves against any possible delays in repayment.

The final amount is given by the consultant during a telephone conversation or a visit to the branch. During such a conversation, it is worth asking about the total cost of the loan, the duration of the contract, the amount of the monthly installment, the total cost of the loan, the amount of the preparation fee and, most importantly, the APRC, i.e. the Real Annual Interest Rate. It should be borne in mind that long-term loans are much more expensive and even though they are granted by non-bank institutions.

How to get a loan?

How to get a loan?

Long-term non-bank loans are usually granted for 12 or 24 months. A loan for a year can be granted without income certificates, provided that the amount does not exceed dollars 10,000. Often, long-term loans are repaid with payday loans, and this is because very high interest rates and interest at the time of delays can be a very big problem for borrowers who are facing a loss of liquidity. At such times, consolidating several loans is a very good option, which allows you to combine several loans into one. The installment of such a consolidated loan is much lower and much easier to repay.


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