The dynamic development of the non-bank loans market in recent years has meant that consumers have access to very favorable and diverse money lending offers. Non-bank entities advertise their offers not only as quick loans, but also as the cheapest ones, they prepare promotional offers. What to look for to find the cheapest non-bank loan?
Cheapest loans – which offers will be the most advantageous?
Finding the cheapest loan will always be related to comparing specific offer parameters. These, in turn, have their components – a specific cost structure that ultimately makes up the overall cost of the loan. Before we talk about them in detail, let’s start with more basic issues.
Of course, it is not possible to answer the question what is the cheapest non-bank loan. We should not compare different offers at all, because each borrower has an individual financial situation. And this has the greatest impact on selected parameters of the sought offer. Stopping at a somewhat general level, it should be stated that those who are able to show a positive credit history have a chance to get the best credit conditions. The second condition is the opportunity to provide the borrower with the required certificates confirming the stable financial situation. The third important issue will also be the age of the borrower, who in many cases significantly affects their solvency.
Meeting the above-mentioned requirements for non-bank institutions is an essential element of securing the funds made available. The less stable the borrower’s life and financial situation is, the more the risk related to his insolvency increases. The level of risk taken by the non-bank institution is reflected in the final cost of the loan. A good example of a component of costs that can increase the value of a refund is, for example, the requirement to insure it.
What is included in the cost of the loan?
To be able to reliably compare offers from specific lenders, it’s worth knowing what is included in the cost of granting them. All are taken into account in the APRC presented, which additionally determines the nominal interest rate on the loan and the so-called value of money in time. It should be emphasized that the value of the APRC depends to a large extent on the duration of the loan. The shorter it is, the higher the APRC indicator will be. When comparing specific offers, of course, pay attention to it, but it will be much simpler to simply compare the final cost of granting the loan.
The two main costs associated with granting the loan are interest and non-interest costs. The former depend on the interest rate in the given company for granting the loan. Their maximum height is regulated by so-called anti-usury act. This also applies to non-interest costs, which usually include: commission related to granting the loan, application fee (so-called preparation fee) and the fee for servicing the loan. In some cases, it may also be her insurance or other additional security.
Non-bank loan promotions
The cheapest loans are certainly the ones that can be obtained as part of a specific promotion. We have certainly encountered non-bank loan offers for PLN zero more than once. These are standard offers of many companies. For these offers, the cost of granting funds is actually zero zlotys. This means that we give back exactly the amount of money we borrowed.
However, it should be noted that these types of offers have their limitations. They are addressed only to those consumers who are the first clients of a given non-bank institution, i.e. offers for new clients. At this time, you can use them only as a loan with a one-time repayment. The amounts that can be borrowed are usually not high and are between PLN 1,000 and PLN 3,000; the maximum loan value that you can apply for is PLN 6,000. It is similar with the repayment time – it is usually 30 days and a maximum of 65 days.
When concluding this type of contract, it should be remembered that the offer for zero zlotys is only valid if we give the loan back within the prescribed period. If it is exceeded, we will bear all costs that are assigned to classic offers. In addition, we usually do not have the option to extend the repayment date, which is acceptable if we choose other offers.
Cheapest online loans
It will be relatively easiest for us to find and evaluate the offers of entities that grant loans online. This is undoubtedly the fastest and most dynamically developing loan market segment. Therefore, we can count not only on diversified offers, but also on the best and the cheapest ones. Online loans, thanks to the possibility of using also available online tools, are certainly the easiest to compare in the context of individual offers.
Such a comparison and offer evaluation certainly makes the calculator easier. It is a simple tool that virtually every lender provides on its website. The calculator presents in a very transparent way all costs related to granting funds – these are usually divided into components.
The calculator is a particularly useful tool when you want to find the cheapest installment loans. Entering and changing certain parameters shows us not only the final cost of the loan, but also the value of a single monthly installment. And often the lowest installment is a priority parameter, tailored to our financial capabilities.
Ranking of offers is another tool you should use to find the cheapest loans online, including the cheapest installment loans. These are run by industry portals. When using them, it is very important to compare offers that actually have the same parameters – loan amount and lending time. Only then can we reliably compare their APRC.
In addition, we can check other characteristics of the offers. For many people, it will be the time to grant funds, i.e. a quick loan granted on financially favorable terms. Others may look for entities to grant them loans despite the debt.