Payday loans have long ceased to be known only from short-term loans of small amounts. New offers are adapted to the changing needs of consumers. And because the market itself is developing very dynamically, newer and newer financial products appear on it.
How did the non-bank loan change?
The first loans payday loans granted on the non-banking market, when this one began to develop in Poland, that is in the 1990s, were not very diversified products. All offers were characterized by the fact that funds were borrowed for a short time – usually 30-60 days. They were also not high amounts. The payday loan could only be taken in stationary company outlets and returned in the form of a one-off repayment.
Since then, the non-bank loan market has changed significantly, which is also characteristic of most financial services. But in the case of payday loans, it’s not just about customer service or access to modern, convenient tools. Customers are offered products that are difficult in many cases to be called payday loans and associated with their characteristics. It is even a non-bank installment loan or a non-bank consolidation loan. Thus, non-bank loans and the classic image of payday loans have undergone a major transformation over the past few or several years.
The most important change on the non-bank loans market was certainly to adapt products to emerging technologies. As people and consumers, we have increasingly started to use networks and mobile devices. The online world is our second, very important environment. What was available to few 10-15 years ago has now become the norm. All goods, products and services that could be adapted to the virtual world are already there. And it was no different with financial products on the payday market.
Taking payday loans online was made possible by three major changes. The first is access to online banking. Today, it is difficult to imagine functioning without making online transfers, ordering banking services in the same way or supervising your account. The vast majority of consumers have an electronic bank account and actively use it – also using mobile applications.
The second important issue is freedom of movement on the web. It is also related to the fact that as consumers we have become accustomed to concluding transactions online and at a distance. We have the same confidence in them as in real world. Therefore, shopping online, concluding contracts or ordering services via the Internet is nothing new, even natural.
The third, perhaps the most important issue is related to the development of the fin-tech industry. Due to the technology boom and the opportunities that opened up due to widespread access to the network, the financial market itself had to take on a glove and open up to this change. Modern tools that have appeared on the market have enabled the development of banking services and products, as well as increased accessibility to them.
The combination of all these three areas has enabled the introduction of the online loan offer. Undoubtedly, it is a very popular and, what is important, safe form of obtaining additional funds. And most comfortable with certainty for many customers.
Long-term non-bank loan
As we have already mentioned, payday loans were mainly associated with short-term loans. In addition, they were characterized by one-time debt repayment. As the market developed, non-bank entities developed their offers. Payday loans in this area began to resemble classic installment loans.
An installment non-bank loan is certainly an offer that is much more tailored to the needs of consumers. Spreading the debt repayment into installments – whether you take out a loan or buy goods – is an important element of financial management in most households. Installment payments do not burden the budget as much and allow you to use the goods you need well in advance.
A long-term non-bank loan is adapted to these needs. The entities’ offers are varied. We will find here those that allow repayment of debt even over several dozen months. Usually the number of installments, and therefore the repayment time of the non-bank loan, can be individually determined by the borrower.
Loan repayment loan
A consolidation loan is another important financial product on the non-bank market. The purpose of its provision is the same as for offers of banking institutions. The consolidation of payday loans is intended to help consumers who would like to obtain better debt repayment terms. It can apply to both classic payday loans and non-bank long-term loans.
The consolidation of payday loans enables the combination of several debts and their repayment on new, more favorable terms. These are agreed individually with the client and better suited to his current financial capabilities.
Cheap non-bank loan
Important changes also occurred in the area of costs of obtaining non-bank loans. These have changed significantly in recent years. This was influenced by both competition in the market itself and government laws regulating the market.
The final cost of granting a non-bank loan depends largely on the client’s financial and creditworthiness. The higher the risk a specific entity takes in connection with the allocation of funds, the higher its financial security will be. In this context, particular attention should be paid to offers addressed to indebted consumers and, in fact, financially unreliable. A loan company providing funds to such persons should be verified before signing the contract. In extremely difficult financial situations, it’s not difficult to make wrong decisions. You should check both the registers of legally operating entities and the opinions of other consumers about the company.