Financial problems can affect anyone at the least expected moment. Even a well-organized household budget and meticulously planned expenses are not always enough to maintain financial liquidity. Losing your job or having to finance a larger project means that you may run out of money for basic needs. In such situations, many people try to borrow from a family or apply for a bank loan. An alternative to these solutions is a long-term non-bank loan . What makes it stand out from other financial products and is it worth using it?
Long-term installment loan – what is it?
Customer expectations for financial products are constantly changing, which is why the loan institutions had to adapt to current realities. Traditional payday loans for 30 have gained considerable competition, thanks to loans for a long repayment period . Such offers are characterized by the fact that they are very flexible and tailored to the clients’ needs. Long-term non-bank loans are distinguished primarily by a longer lending period and a precisely configured repayment schedule. Each customer can determine himself not only the amount he wants to borrow, but also the number of installments. Thanks to this, you can have a direct impact on the parameters of the offer and make its conditions dependent on your own financial capabilities.
When is the loan long-term?
The offers of non-bank companies are so diverse that it is difficult to clearly define when the loan is long-term . It is generally accepted that popular payday loans are granted for 30 days, after which they must be repaid in full. Currently, however, parabanks offer such loans for up to 60 or 90 days, which can be misunderstood as a cash loan with a longer repayment period. Compared to long-term offers, even a 90-day loan period is not long, when parabanks lend money even for several dozen months. When looking for a definition for a long-term non-bank loan , it can be determined that it is a financial product whose repayment is spread over monthly installments and the loan period lasts a minimum of 3 months.
How to calculate monthly installments?
Unlike payday loans , the repayment schedule of non-bank long-term loans can be set yourself. There is no need to perform complex calculations, because everything is done using sliders. This intuitive tool is available to clients, so you can set the parameters of the cash loan before submitting the application.
Using the example of a PLN 7,500 loan set for 16 months, detailed information about the total repayment amount, APRC and the monthly installment will appear immediately.
As you can see, the repayment schedule also includes public holidays, in which the deadline is postponed to the next business day. Thanks to this, you can easily control the date of the next payment so you don’t miss anything.
Who can take a loan for a long repayment period?
On the lender’s website you can read the detailed terms and conditions for granting loans. Requirements for customers are not excessive because they include, among others:
the criterion of age between 20 and 70 years old,
home address in the country,
have a valid ID card,
have an active phone number,
owning a proprietary bank account.
An important condition is that you have outstanding debts owed to the lender before submitting another application. Due to the fact that non-bank loans mean a long-term commitment, one has to take into account the possibility of checking in the BIK databases. This does not mean, however, that a person who has arrears in repayment cannot count on a positive consideration of the application. Many companies have a flexible approach to clients, which is why they also offer loans for those in debt as part of consolidation. An unfavorable history in BIK may also result in the lender proposing other terms of cooperation, such as a lower loan amount or a longer repayment period.
What are the benefits of long-term loans?
Summing up the information to date, it is worth analyzing all the benefits of taking a long-term loan. First of all, it should be taken into account here:
Easy credit process – taking a non-bank loan is limited only to registering the client’s profile on the lender’s website and completing the application correctly. The whole procedure takes place via the Internet, and the whole process is very intuitive.
Security – although you only need proof to take out a loan, you don’t have to worry about someone taking a loan for your data. Identity verification is based on a penny transfer or electronic service. It is not possible to take a non-bank loan without access to your bank account.
Flexible matching – a long-term installment loan can be maximally tailored to the client’s needs and financial capabilities. The total amount and the number of monthly installments allow you to configure loans so that they are convenient for repayment.
Fast cash transfer – credit applications are processed on an ongoing basis, therefore, if the banks comply, the money can be on the account the same day.
A long-term installment loan is the perfect solution for those who like to have control over finances. Convenient installments are not such a burden for the household budget as a one-time repayment, which is why it is a safer way out in the event of financial instability. It is also an ideal loan for those in debt who want to get out of the debt spiral, and use the funds raised to pay back the arrears. However, it is worth remembering to apply for amounts adequate to financial possibilities, as the loan is to provide support in a difficult situation, and not to strain the budget even more.