November 5, 2020

What are non-bank long-term loans?

Over the past few months, lending institutions have become serious competitors for banks. This can be seen especially when considering low-value loans. According to the data published by the Credit Information Bureau, non-bank institutions grant up to 35% of loans up to USD 1,000. Popular payday loans taken for a short period of time is not the only offer of this type of companies.

What are non-bank long-term loans?

What are non-bank long-term loans?

People planning to take out a loan for a longer period usually go to banks. Currently, however, they also have other options, such as long-term online loans available even without leaving home. Although many people associate them with popular payday loans, ie short-term liabilities (usually around 30 days), in fact, you can borrow up to several thousand dollars in this way, and repay the loan over a longer period.

This allows you to get more funding for any purpose while determining the amount of installments in such a way as not to overburden your home budget. Compared to loans from banks, long-term loans with proof are much easier to access and do not require so many formalities. No wonder that they enjoy so much interest.

According to data collected by the Credit Information Bureau comparing the first half of 2018 with the same period of the previous year, the number of borrowers in the banking sector increased by 46.3 thousand. persons, ie by 0.3%. As for the loan sector, the number of people deciding to use the services of non-bank institutions increased at the same time by 122 thousand. USD, or 29.3%.

More convenient than at the bank


The popularity of non-bank loans is due to several factors, and one of the most important is certainly easy accessibility and convenience – you don’t even have to leave your home to apply for such a commitment. The process of applying for non-bank long-term loans takes less time than when applying for a consumer loan at a bank. In addition, loan institutions do not require any income certification from your employer – all you need is a completed application.

Thanks to this, even students living on scholarships or persons employed under a specific work contract or mandate contract can apply for such obligations, which often have difficulty obtaining a loan from a bank.

Not without significance is the fact that customers considering taking out a loan can conveniently determine both the amount of the commitment and its repayment installments and the total cost. This solution allows you to make a more informed decision. According to credit data, in the first half of 2018 loans with a total value of USD 886.9 million was granted.

Secure online borrowing

Secure online borrowing

First of all, it should be noted that non-bank institutions offering long-term loans without online certification are not Copy Lender Bank, but companies granting legal consumer loans from equity. In addition, it is worth knowing that over the past few years, many legal regulations have been introduced that affect the functioning of this type of business entity.

Pursuant to applicable law, maximum non-interest consumer loan costs may not exceed a certain amount. In addition, only enterprises that operate as limited liability companies or companies with a share capital of at least USD 200,000 are considered to be loan institutions. USD and is covered entirely with cash. The introduced changes caused the conditions for granting loans were also tightened and, as a result, more applications for such commitments were rejected. The share of loan refusals was 69.05%.

Many companies that specialize in long-term loans on proof work with credit checks. On the one hand, it makes it harder to get such a commitment, while on the other, it protects against taking loans that are too hasty, which we cannot payback.