Comparison of loans and credits is a practical assistant in considering what loan to choose for any necessary expenses. Comparison of loans will help to orientate in the conditions for granting loans and to decide which company offers more favorable conditions.
Loan companies have different conditions for granting a loan. Some companies provide a loan without proof of income. Some state that they provide a non-bank loan immediately or a non-bank loan in installments. Providers appear to declare that they do not consult the debtors’ registers. By law, non-banking companies are obliged to verify whether the candidate is able to repay the loan. In practice, this is often not the case, as is evident, for example, in a loan for the indebted and with execution.
These loans are often called loans for troubled clients. These loans without a register are usually a class less advantageous than conventional non-bank loans and come with a higher risk for those interested
What is important to note – an entry in the registers does not mean that the loan application will be rejected. Recording with individual clients is often dealt with individually, but it can greatly reduce a person’s creditworthiness in the eyes of a bank or non-banking organization.
When comparing loans, it can be clearly seen that loans differ in particular between loans from a bank and a non-banking company. Comparison of loans from banks is offered in the category of loans and loans, this section focuses on the comparison of non-bank loans.
What to watch out for non-bank loans
Non-bank loans are usually elected by people after their bank loan application is rejected. Banks are very strict and careful in assessing the creditworthiness of applicants. Low income, payment history of timely and bad repayment, or existing debts can make a bank loan impossible.
At this point, affordable and fast non-bank loans seem to be the ideal solution. It should be borne in mind that non-banking companies are aware of their unique position. It does not apply to everyone, of course. There are several factors to distinguish a solid non-banking institution from usury:
- the contract is clear
- all loan information is understandable and available
- there is no assessment and negotiation fee
- has had positive responses to unbiased sites
If the contract is already exhaustive, it may be better to try to look further. Small fonts, references to footnotes after each sentence, or gray letters on a white background are among the usual tricks of non-solid non-banking companies. All contracts must be read before signing, and this applies twice for non-bank loans.
A contract for non-bank loans needs to be careful. Especially those less well-known providers.
Another feature is loan information. A solid non-banking company is not afraid to indicate both interest and APR before negotiating on their site. Amounts to be paid extra in the loan period are also welcome. Conversely, if this information is unavailable or is difficult to access, it is probably a very disadvantageous loan. An example could be a loan for work, which is a novelty in the market. Borrowed money can be repaid by work. Interesting idea, but no specific information. And this significantly weakens the credibility of the project.
The fee for examining an application and arranging a loan is an indicator that the entire loan will be accompanied by all sorts of fees. Conversely, loans that are negotiated free of charge or companies offering the first interest-free loan can be considered safer.
Every non-banking company pays to look at the unbiased pages and read the responses of people who have already taken a non-bank loan from them. Even though the reviews are positive, it is always worthwhile to read some of the negative reviews, as they can point out important details about a non-banking company and their offer of non-bank loans.
Comparison of non-bank loans
There are huge numbers of non-banking entities on the market. Even more is the types of loans it offers. The Loan Grader below, which is below, can help in this. The Loan Comparison classifies the loans according to the APRC, which is a better measure than the interest – it includes all fees borne by the loan. Loans with 0% APR are offered free of charge to get satisfied clients.
Non-bank loans differ from bank loans primarily in two areas:
- tend to be more expensive
- tend to be more accessible
Non-bank loans generally involve higher interest rates and a range of fees. Although the interest rate may be only a few percent higher than a bank loan, it is always necessary to look at the APRC (annual percentage rate of charge) percentage. The APRC also includes all fees associated with loan management.
On the other hand, non-bank loans are accessible to almost everyone, especially non-bank loans without proof of income. The arrangement is very often available online. Comparing non-bank loans will help you choose the most appropriate option from a responsible non-bank company.
A quick loan is one of the most frequently offered non-bank loans. Their main advantage is speed, often presented as non-bank loans immediately. Money from the loan can arrive literally a few minutes after filling out the form either at the branch, by phone or online from the comfort of home. They are negotiated for a very short time – weeks to months. However, it offers relatively disadvantageous interest.
First free loan
The first free loan is sometimes provided by non-banking companies to attract customers. This loan is usually limited by the maximum amount, usually it is a loan of a few thousand crowns. Although the interest rate may be 0%, it is necessary to make sure that there is no fee for arranging the loan. Also, zero interest does not mean that the loan will not be overpriced unless it is repaid in time.
A micro-loan is a loan in the range of several hundred crowns to a few thousand crowns, which is concluded for a very short time, usually a few weeks. They are very affordable and easy to obtain. Due to the short maturity, the APR is often not given, but only the amount that will be repaid at the end. The APRC on microcredit is one of the highest and is in the hundreds of thousands of percent.
The SMS loan is a micro-loan, but it is arranged by sending an SMS message with the appropriate details. The first SMS loan is usually set up as a postal order, the next SMS loans are then negotiated only by sending an SMS message. Their advantage is ease and speed, on the other hand, like other microloans, they are very expensive.
Loan without proof of income
The loan without proof of income is provided by several non-bank entities. The law mandates that the creditworthiness of each candidate be verified, usually by documenting and verifying the income and consulting the debtors’ register. These loans are provided without proof of income. As a result, however, it comes with a less favorable interest rate and higher fees than normal for non-bank loans.
Cheap loan without proof of income
Even loans without proof of income will find exceptions that can be described as cheap. They have a relatively low interest rate, which ranges to a maximum of 5% pa But you can get interest-free loans. These are offered by some non-banking institutions to clients who take a loan with them for the first time. In such cases, and provided the client pays the amount on time, there is really no extra charge.
A payday loan, sometimes also a Finnish loan, is a quick loan that is most commonly negotiated because of the need to suddenly pay the amount for which the family budget is not enough. These are usually loans up to a few thousand for 30 days. It is not a non-bank installment loan, everything is repaid in one installment. Interest rates are relatively high and late repayment fees can multiply the loan before payout.
Loan without register and pledge
The loan without a register and collateral is provided by non-banking companies that do not look into the register of debtors or require the mortgaging of a property or other object as compared to loans from banks. With this comfort often comes extra fees and higher interest.
The weekend loan is usually negotiated in person. As the money is not transferred during the weekend, this loan is paid in cash. It can be obtained at a branch of a non-banking company, or you can invite a representative from a non-banking organization to come with all the necessary forms and conclude the contract at the customer’s home.
Loan for indebted
A loan for indebted is the most risky negotiable loan for both the non-banking company and the borrower. This is doubly true when it comes to a debt for the indebted and in the distraint, in which case the credit is no longer granted by many non-banking institutions, and those that do often count on the non-return of the loan in advance. any gain from the execution of the debtor.
Loan for the unemployed
The loan for the unemployed is a relatively risky loan. Unemployed people have to live with an absolute minimum, from which they would have to repay the loan, so the loan for the unemployed is usually very small. In the event of inability to repay the loan, very high fees come.
It is a loan with an interest rate of 0% pa. Non-bank interest-free loans are usually advertised as the first free loan, which means that only new clients can receive zero interest. For this type of loan, it is always necessary to bear in mind the possible hidden fees and also the timely repayment, otherwise usually there is a high interest on late payments.
In the context of P2P loans, people borrow from people via so-called peer-to-peer platforms. As a rule, they offer more favorable conditions than other types of non-bank loans and at the same time allow them to appreciate money for those who want to invest. P2P loans can be used for anything and the rules for granting them are much milder than for bank loans.
Basically, all these types of loans and many others can be found at various loan markets. This is usually an advertising site where people can advertise for free loan requests or loan offers for free. This means that both people who need a loan and those who provide it meet here. The latter may be both financial companies and private equity holders.
Loan demand is mainly used by people who, for some reason, have been refused loans to banking or non-banking financial institutions. For many, this is the last way to raise money to tackle the adverse financial situation.
How to choose the cheapest loan?
A comparison of online loans will help you to know a wide range of non-bank loans, and a credit calculator online can help you find the cheapest loan.
Generally valid loan selection tips are:
- do not borrow more than you need to necessarily
- compare APR, not interest rate
- borrow only from trusted companies with good feedback
- read the entire contract before signing
In addition to comparing non-bank loans, we also offer company profiles that allow you to take a background picture of each of these institutions.
Each company can be clicked to see their history and financial products offered.
How to avoid future problems with the loan
1) Borrow only from branded companies
Borrow from companies included in the online comparison of non-bank loans. It’s always worthwhile to see what people say about a company in reviews, social networks, or various online forums.
In addition to the APRC itself, compare how a non-banking company would deal with repayment problems. If it allows postponement of installments free of charge, it is probably a responsible and reputable company. Otherwise, when the inability to pay is solved by high fees, it is better to look elsewhere.
2) Before you sign anything, read it.
By signing, you agree to all contract items. If you do not understand something or something is not clear, do not be afraid to ask the non-banking company directly. It is never worthwhile not to read the contract or just fly over it.
It is always possible to take the contract home and for example over the weekend read it calmly and sleep on the final decision. A second pair of eyes can also help to detect problematic items – eg the presence of a surveillance clause. If it is in the contract, this means that any dispute with the loan in the future would be resolved by a person appointed by a non-banking company instead of an impartial judge.
3) If a branded company does not give you a loan, it is a sign that you may not be able to repay it.
It is not so uncommon not to reach a bank loan, but to reach a non-bank loan from an established and verified non-bank company is no longer so common. This rejection is either due to too low income, high debts, distraint, or history of defaults.
If a person does not obtain a loan from a bank or from a branded non-banking company, he has no other options.
In such cases, loans from non-banking companies bordering on usury remain. Offering usurers will not help, on the contrary, even more harm.
4) Solve problems in advance
Anything can happen. If a person finds himself in a situation where he cannot repay his debts, he should immediately report this fact to the appropriate companies. At best, the repayment schedule can be compiled until the situation calms down and the repayments can be paid again.
Therefore, do not borrow to repay the debt. This is a debt spiral and never ends well. If you have problems with debts, contact the help of experts. There are a number of non-profit organizations in the Czech Republic that help people with debts in financial distress completely free of charge.
Are non-bank loans offered credible?
Yes, the offers included in the online loan comparison come from proven and solid non-banking companies.
What does creditworthiness mean?
Creditworthiness means the ability to repay the loan. Banking and non-banking companies use an individual’s creditworthiness when deciding whether to grant credit.
It is determined mainly by:
- current income
- Payment history (whether former loans were repaid on time and in full)
- amount of debts.
Too low creditworthiness will limit the maximum amount of loan that a person can reach or even prevent the loan from obtaining.
What are the risks of non-bank loans?
Credit is a liability. Whether it is provided by a bank or a non-banking company, loans must always be repaid in full. Loans are not recommended to take on unnecessary things.
Therefore, one should spend enough time comparing individual offers and making sure that the non-banking company is truly proven and reliable. We’ve already done both, just use our comparison of non-bank loans online and read each non-bank company on our site.
What is the APR?
APR means the annual percentage rate of charge. In contrast to the interest rate itself, it includes all fees associated with the loan. Therefore, it pays to look at the APR rather than interest. Lenders are legally obliged to inform about the amount in advance. For APR calculation you can also use one of the calculators on the Internet.
Can I get a loan online?
Yes, basically all non-bank loans offer to negotiate online. All you have to do is click through to a non-banking company after selecting a loan.
What to do if my loan becomes disadvantageous?
Interest rates are constantly adapting to the financial market situation. If the current loan becomes disadvantageous due to a much higher interest rate than is currently available, refinancing can be requested.
By refinancing, the current loan is adapted to the conditions of the bank, which offers lower interest. Thanks to this, you can save up to thousands of crowns per year in installments.
If the debt is 2 or more loans, debt consolidation is agreed. With consolidation, all debts are taken and made into one big loan. Thus, one does not have to pay interest on each loan separately and makes life easier by administrative simplification.