People sending and receiving money wireless with their mobile phones. Hand tapping smart phone with banking payment app. Modern flat style concept vector illustration isolated on white background.

Currently, all types of non-bank loans are very popular. Thanks to them, we can instantly improve our budget, even without leaving home, because we can do everything online. We can choose between short payday loans and installment loans. How do they differ between themselves?

Financial institutions have in their offers various types of products intended for people in need of quick support. Compared to loans, non-bank loans are generally easier to obtain and faster. We can take them for any purpose. However, before you ask for such a loan, it is worth getting acquainted with the current proposals.

What are payday loans?

These are non-bank loans that are intended for people who need money immediately. The ponders, as the name suggests, are given for a while – they are characterized by short repayment dates and smaller amounts of granted loan. Most often, we can borrow from about 200 to 3000 zlotys depending on the loan company selected. The repayment period is from 15 to 30 and sometimes 60 days. Usually, we donate money in one installment, and the APRC is much higher than in the case of long-term installment loans.

The main advantage of payday loans are reduced formalities. Most often, we do not need to present documents confirming earnings and employment, also we can get loans without BIK, i.e. without checking in debtors’ databases. It is therefore a proposal for people who would have difficulty obtaining a bank loan.

The most important shortcomings of payday are the high costs – the interest rate and the commission are quite large, but nevertheless we pay for our convenience and speed.

What are installment loans?

Installment loans are granted both by banks and non-bank institutions. In contrast to payday loans, they are paid in installments – one per month. Therefore, installment loans allow us to incur a higher amount, as well as its convenient repayment, which will not be an excessive burden on the household budget. The amount of the loan installment depends both on the amount collected and on the loan period.

For a long time, installment loans were offered mainly by banks, but now they are also available in loan companies, which thus meet the needs of their clients.

In order to obtain an installment loan, we should have adequate creditworthiness. In banks, it is examined on the basis of revenues – declared or certified by documentation. In the case of parabanks, we can get a loan for proof without formalities , but with larger sums there may also be requirements related to proving your earnings.

Bank has an attractive installment loan for customers, which allows you to get up to 10,000 PLN for 24 months. It is much higher than in the case of payday loans, which is why it allows you to finance larger expenses. All you need to do is complete the online application – welcome!