Loan for Everyone
April 21, 2020
Non-banking companies often bet on the motto: a loan for everyone. Other reasons for arranging a loan with them include speed and little paperwork. But how much do you actually pay for similar benefits? The speed of processing is even at the limit of a few hours, so you can get the money immediately, it is the so-called “money on hand”, respectively. loans within 24 hours. It is speed that is the most common criterion for obtaining a non-bank loan; it is precisely for the aforementioned speed that 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
At a time of global financial crisis, banks are often reluctant to lend and borrow. At this time, banks set their criteria for granting a loan so that only a few clients meet them. Usually, these conditions are met only by clients who do not need a loan. Banks are often not motivated by the profit from loans. All they need are account management fees and many other fees, which they have very well hidden. Well, it is at this time that space opens up for non-banking institutions that provide loans and borrowings.
When and how much do we borrow?
Every year, interest in consumer loans is affected by seasonality. In the pre-Christmas period, the most is borrowed. The greatest interest in buying in installments and non- purpose loans for anything. In the case of non-bank loans, the greatest interest is in loans in the amount of 10,000 to 50,000 with a maturity of twelve months.
One of the manifestations of the global financial crisis is the rise in unemployment all over the world. And the country did not lag behind this trend and, of course, unemployment rose. How do non-bank lending and lending 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 submit any proof of income . Unemployed people should not take out consumer credit, especially in times of crisis, as this can be very bad.
The parameters of the loan are adapted to the clients
Today, companies that provide non-bank loans and credits try to attract and meet new clients, for example, with some parameters of provided loans and credits. Clients can choose the amount of the loan and the repayment period. An important fact is the fact that clients are informed about all fees at the beginning.