Installment loan and bank loan - differences. What to choose?
Do you want to borrow cash, but you don't know which option is right for you? There are many ways of financing available on the market. Check what is the difference between an installment loan and a bank loan and choose the right product for you!
A quick installment loan and a bank loan are two different products. The first one is offered by non-bank institutions, while the loan can be found only in the offer of banks. In addition, there are also important points that you should be aware of before applying. Check which product is right for you!
Non-bank installment loan - parameters
The installment loan is offered by non-bank financial institutions. Their terms are regulated by the Civil Code. How much can you borrow when applying for a non-bank installment loan? The amounts start at 1 000, and end up to 60 000 zł. Remember that the maximum loan amount depends on your creditworthiness. So you need to measure your intentions and apply for the amount you need and are able to pay back within the prescribed repayment period. This is usually from 2 to 60 months and depends on how much you want to borrow - the higher the loan amount, the longer the repayment period.
The total cost of a non-bank loan consists of: loan interest (max. 10%), commission for granting , loan-related fees , e.g. the cost of preparing a loan agreement, database verification, loan granting and servicing fee.
Non-bank companies do not require too many formalities. To apply for a loan, you will need an ID card, an active telephone number and a bank account . In some cases, especially if you want to borrow a large amount, you may be asked to document your income and your personal account statement.
In the offer of non-banking institutions you will find products such as: installment loan, quick cash loan (payday loan), loan without BIK, loan for proof, loan for indebted people, loan for companies or secured loan.
Cash loan at the bank - parameters
A bank loan, as the name suggests, is granted by banks. The conditions are regulated by the Banking Law. Contrary to non-bank installment loans, cash loans are granted for high amounts: from 1,000 to even 250,000 $ . You can pay off the debt within 1 to 120 months . The final amount of the obligation, the loan period and the terms of granting it, are mainly influenced by the creditworthiness.
The final cost of the loan is influenced by such factors as: interest rate (max. 10%, but banks usually offer a percentage of 4-8%), commission (you can often find promotional offers of 0% APRC ) and any additional fees. Banks may require the consent of the spouse, security or the purchase of additional products, such as insurance or a personal account.
Unlike non-banking companies, banks require proof of income, bank statement and a valid ID document. When presenting your income statement , the type of contract is also important . The best option for a bank is an employment contract, although you can easily count on a loan if you run your own business or have been working on a mandate contract for a long time.
The most popular bank loans include: cash loan, mortgage loan, business loan and consolidation loan.
Non-bank installment loan and bank loan - differences
In the table below you will find all the necessary information about a non-bank loan and a cash loan. Check which product suits your preferences.
Non-bank installment loan and cash loan - what are the differences?
1,000 - 60,000 $
1,000 - 250,000 $
Loan repayment period
2 - 60 months
1 - 120 months
Personal account at any bank
It may happen that the bank requires a personal account in its bank and insurance, e.g. for life or unemployment
Verification in debtors' databases
Depending on the lender
BIK, BIG InfoMonitor, KRD
Do you have any questions related to a non-bank loan or cash loan? Let me know in the comment and we will surely help you :)