Bank loan is a very common way to finance many needs, but also whims. At present, it is quite easy to get loans for lower amounts, for example up to PLN 20,000. Increasingly, it happens that you can choose between a bank loan and a non-bank loan for such a high amount. So where is it worth to borrow money?
Advantages and disadvantages of the loan in the bank
Unfortunately, banks have disadvantages in addition to many advantages. The biggest one is the restrictive checking of each client. In practice, this means that when going to the bank with the desire to take out a loan, you must have a document confirming the amount and continuity of income in order to verify your creditworthiness. In the bank you also have to give so-called costs of living, although some banks have a fixed amount and impose it on the calculation in advance. Of course, you also have to say about your financial obligations, for example, another loan or a non-bank loan.
However, the biggest drawback may be mandatory for the bank to check databases. Usually, banks check the so-called Bank Register and Credit Information Bureau. It also happens to check the National Debt Register. Databases like Retro store data for the last 5 years. This means that if in the last 5 years we had a problem with repayment of liabilities, the bank will see it. And that already causes immediate refusal of credit.
However, if we have never had problems with late repayment of liabilities, we can successfully get a loan. Each loan is spread over installments once a month. This is a very convenient solution. However, it is also possible to get a parabank loan for that amount.
Advantages and disadvantages of non-bank loans
Who uses this solution? First of all, people who do not meet the requirements set by banks. A loan application bank may reject it for various reasons, however, it is usually too low creditworthiness and too high credit risk due to negative entries in the customer profile databases.
Meanwhile, loan companies consider each application individually. This means that even people with an estimated low income or a negative entry in Retrodatabase can get a loan. Here, like at banks with high amounts, loans are spread out on installments to pay off. However, in parabank you can borrow lower amounts than in banks, and the repayment time may be shorter, which also makes the loan installments higher.