Non-bank Loans are Becoming Increasingly Popular: What are their Benefits?

Non-bank loans are becoming increasingly popular

Non-bank loans are becoming increasingly popular

For some time now, financial statistics have been clear about the growing popularity of non-bank loans, which is also directly related to improving the overall quality of non-bank products offered. Applicants have significantly changed their demands on the offered services and in the ranking of the most expected features of the loan, individual parameters have been shifting their positions. Non-banknotes have been able to adjust to this demand with greater certainty and thanks to the flexibility they bring, the number of satisfied clients is growing in their official databases. has more details

Despite the ongoing advancement of banking services, loan seekers are increasingly in favor of a non-bank program that often allows them to raise money on more acceptable terms. Differences in obtaining funds are in some steps diametrically different, especially in terms of access and equal understanding of all customers. If you can boast the experience of applying for both types of loans, you can probably at least subjectively compare the financial service when submitting your application and recommend to your loved ones where to contact if necessary.

We know some reasonable arguments that have made the weighing pans tilt to the side of non-bankers, and customers are even looking for these products repeatedly. The truth is that the total cost of credit is undoubtedly much higher when using non-bank loans, but many of the interesting benefits associated with the simple way of equipping and the subsequent speed of application approval have become attractive to all client groups. Another key factor of popularity is the interest in the customer, which undoubtedly flatters the consumer and attracts his attention towards a particular offer.

Bank loans

Bank loans

Each bank’s portfolio includes a variety of loan programs and offers its clients long-term reliable products that are of a high standard and bring many interesting conditions. Also, because of this seriousness and quality of products, obtaining money from a bank can be a more challenging process, but if it works out, you should be most satisfied.

Bank loan benefits:

  • Low interest rates – Customers most attracted by the lowest available interest rates on the market can most often meet directly at the bank’s branches. If approval conditions allow them to get a bank loan, they are most likely to overlook the remaining drawbacks and use the cheapest offer.
  • High borrowing amounts – Gaining a few thousand euros of cash aid is a significant plus that non-bank providers cannot praise. As the bank handles daily with huge amounts of money, it is not a problem to borrow thousands of euros.
  • Bank’s reputation – Despite the seriousness of many non-bank providers, it is widely known among people that the bank is the most reliable financial institution and therefore most of the applicants will be lucky in the bank.

Bank Loan Negative:

  • The application is made in person – It is not so long ago that we could not find in any bank the possibility to borrow via the Internet and customers had to visit the bank branch in person to be able to submit an application at all. Today, most banks have this option, as it helps to prevent clients from leaving the competing non-bank loans providing money immediately.
  • Challenging administration – The required income statement is definitely needed, but we can rightly argue that, due to all the need for approval, it is completely irrelevant to both parties for the purpose or written declaration of the guarantor.
  • The course of approval takes a long time – bringing the bank’s personal visit to credit processing and the large number of documents required brings too much burden to the candidate and also delays the time that is often a huge obstacle for him. Banks are reluctantly abandoning this old-fashioned process of unnecessary paperwork, doing just to keep pace with the non-bankers.
  • Reluctance to under-attractive clients – Socially weaker populations such as disabled retirees, mothers on maternity leave or self-employed persons with low tax returns are in most cases rejected for the simple reason of distrust of solvency. In some negotiations, such clients are treated individually and there is a possibility to withdraw the application, but such cases are really few and require proper liability or security.

Non-bank loans

Non-bank loans

Immediate approval within a few hours, convenient equipment without a visit, availability to the general public and no unnecessary paperwork, as well as briefly and aptly characterize non-bank loans, whose popularity is still growing.

TIP: Non-bank loans in Slovakia: complete list!

They also have negatives, but for most applicants they have become much more comfortable in raising money.

Non-bank loan benefits:

  • Money Reaching Speed ​​- Almost every non-bank institution can guarantee its clients an instant review of the application and then post money to a bank account, which means that you will be able to draw money the next day.
  • Ease of equipment – You can apply for a non-bank loan quite easily through an online application or sms form not yet offered by all providers. Anyway, both ways are unpretentious, do not require unnecessarily complicated administrative procedures and save valuable time.
  • Wide availability – These products are indeed for a large number of candidates without differences in social status. While some providers need income confirmation, it is a plus that the receipt of state contributions is also considered as such, making it possible to raise money for students or pensioners.
  • Without looking into the registers – Only a fraction of providers look into the credit register and find out about the applicants’ creditworthiness. Also, the payment discipline from the past is not being examined, so you can remember the loan despite repayment incidents.

Non-bank Loan Negatives:

  • High Interest Rates – Interest rates need to be seen as an assessment of some risk associated with borrowing under simplified conditions, most often on-line loans without proof of income and no guarantor. Compared to “cheaper” bank loans, rates are overestimated, which can lure a significant number of clients.
  • Low Loan Spread – Most non-bank loans are provided in several hundred euros, usually up to 1500 or 2000 €. Loans are mainly intended for various consumer purposes, so low amounts are considered sufficiently adequate.

Demographics about the fraudulent practices of non-bank companies have sometimes spread among applicants, resulting from excessively high interest rates and opaque contract terms. However, such irresponsible providers have also had a minimal impact in the past, so letting them be affected by a few negative experiences would be wrong.

The most successful non-bank lending institutions in Slovakia have acted trustworthy since the start of their business and offer customers the most reliable services to date. Fortunately, the current attitude of the clientele is tuned in favor of non-bankers and this popularity is rightly deserved thanks to the perfect access to people. And for the sake of clarity, some Slovak non-bank institutions belong to a financial group whose parent company is usually a foreign bank, which adds seriousness, so due to this information, slander is irrelevant.

If you are in favor of a quick and simple form of obtaining a loan, you will certainly opt for a non-bank product that meets these requirements perfectly. The speed, simplicity, availability and overall simplicity of the required criteria adorn most of these loans and provide customers with a convenient way to raise money despite refusals by the bank.

If you search for available and easy help, we have an immediate loan within 24 hours, which is the perfect alternative to a variety of bank loans. You can get money for anything up to 1500 € through our online application here.

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