A loan for everyone – fast and affordable

 

In their ads, non-banking companies often bet on the motto: a loan for everyone. Other reasons for arranging a loan with them include the speed and little paperwork. But how much do you actually pay for similar benefits? The speed of the equipment is even on the border of a few hours, so you can get the money immediately, this is the so-called “Money on hand”, resp. loans within 24 hours.

Speed ​​is the most common criterion for obtaining a non-bank loan, just for the mentioned speed, people prefer non-bank products, despite higher interest rates. In advertising, therefore, we most often encounter the slogan: “quick loans for everyone”.

Crisis and non-bank loans

Crisis and non-bank loans

At a time when the global financial crisis is being talked about, there is a perception that banks are often hesitant to provide loans and credits. At this time, banks set their criteria for granting a loan so that only a few clients meet them. Usually, only those clients who do not need a loan will meet these conditions. Banks are often not motivated by the return on loans. All they need are account management fees and many other fees, which they have very well hidden. But it is at this time that space is opening up for non-banking institutions that provide loans and borrowings.

When and how much do we borrow?

When and how much do we borrow?

Every year, interest in consumer loans is influenced by seasonality. In the pre-Christmas period, it is borrowed the most. The greatest interest in buying in installments and non-purpose loans. In the case of non-bank loans, the greatest interest is in loans in the amount of 1,000 and 3,300 with a maturity of twelve months.

Loans for the unemployed

Loans for the unemployed

One of the manifestations of the global financial crisis is the rise in unemployment all over the world. And did not lag behind this trend either, and of course unemployment has risen. How do non-bank lending and credit companies view this phenomenon? Today, in most companies, you need a regular source of income, but there are also those where you do not have to provide any proof of income. Unemployed people, especially in times of crisis, should not take out loans for everyday consumption, as this can turn out very badly.

The parameters of the loan are adjusted to the client

Today, companies that provide non-bank loans and credits try to attract new clients and meet them, for example, with some parameters of provided loans and credits. Clients can choose the amount of the loan and the repayment period. Another important fact is that clients are informed about all fees at the beginning.

What to look out for when borrowing?

However, if you want to arrange a loan from a non-bank sector, you should be careful and follow some basic rules. Find out as much up-to-date information about a non-banking company or private investor as possible. As a rule, all more serious companies and individuals dealing with the provision of loans publish on their websites various advice for those interested in a loan.

  • Compare terms across multiple companies
  • A low monthly payment does not necessarily mean a low interest rate (loans with the smallest monthly payments are often the most expensive)
  • Do you need a loan? (unemployed people or people at risk of employment should not be in debt)
  • Before signing, read the contract carefully, if you do not understand something, ask, or consult an expert.
  • Beware of timely repayment. If you have a problem, contact the company immediately.

What to keep in mind before applying for a small loan?

 

We all have our dreams, some bigger and some smaller. Sometimes it is necessary to wait a long time for dreams to come true. Sometimes you just need a little help in the form of a small loan. Have you long dreamed of a pleasant holiday trip? Need a new car? Or is it necessary to renovate the children’s room instead? Whatever you would not dream of at the moment, companies dealing with small loans can help you with all this. However, there are quite a few of them on the market and it can be difficult to decide who to trust. What should you keep in mind before applying for a loan? Here are some useful pieces of information to help you decide which lender to turn to and what to keep in mind before entering into a loan agreement.

Find out the lender’s background

Find out the lender

How long has the lender been in this market? Does it comply with all precepts issued by the Financial Supervision Authority, Eesti Pank and the Consumer Protection Board? These are all things that will help you find out if you are signing a contract with a reliable partner.

Think for yourself what you need a loan for

Think for yourself what you need a loan for

Lenders offer a wide range of amounts from 50 dollars to tens of thousands of dollars. Even write down the budget on paper and, based on that, start looking for a suitable loan offer.

Familiarize yourself with the loan terms

Familiarize yourself with the loan terms

Ask about loan terms and credit cost rate before concluding a contract. Also read the fine text carefully and ask clarifying questions before concluding the contract. Keep in mind that lenders are subject to restrictions on the maximum cost of credit.

Hidden fees

Hidden fees

Are there any contract fees for concluding a loan agreement? These are all important things that no one pays much attention to when applying for a loan, but later it can be retaliated against. Let’s say you want to repay a loan earlier, but haven’t noticed that you still have to pay a certain percentage of interest to do so. This can be quite a large amount that you can lose through it.