Long-term loans

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The amounts of non-bank installment loans start at several dozen zlotys, but end at a dozen or even several dozen thousand. Although their costs are usually higher than the cost of bank loans, they are not as high as they were a few years ago. All thanks to the amended provisions of the Anti-usury Act, which entered into force in March 2016. According to them, the cost of borrowing money cannot be more than 25% of the loan amount plus 30% of that amount per annum. The cost limits include all fees except interest. Their amount remained unchanged and is currently four times the NBP lombard rate, i.e. 10% per annum. Depending on the company, the repayment period of a long-term loan is from a few to several or even several dozen months.

Loan: longer or shorter?

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If you plan to borrow money from a non-bank institution, you will definitely have to choose between a short-term loan and an installment loan.  The most important criterion that you should consider is your repayment capacity. If in 30 or 60 days you can’t collect the whole amount you need, choose an installment plan instead of a payday loan. It is much easier to deal with repayment of a long-term loan by being able to spread the amount borrowed into several or several installments. Unfortunately, this decision is associated with higher costs than in the case of payday loans. Installment lenders do not offer free financing. You will have to pay for each zloty borrowed.

The next thing to consider is the amount of loan needed. When you reach for a short-term loan, you will not borrow more than a few thousand zlotys. Especially if you are a new customer and you have never used a lender before. The maximum amounts of installments range from several to several dozen thousand zlotys. Such an injection of cash will allow you to achieve much bolder goals. If you are considering getting a short-term loan with a repayment period of 30-61 days, see our comparison of payday loans.

Long-term loans – is it worth it?

Long-term loans - is it worth it?

A non-bank installment loan is a good solution for people who need more than a few thousand zlotys to implement their plans. Installment payments will also work for those borrowers who are unable to pay back the loan within 30 or 60 days. By paying off the commitment in installments you will minimize the risk of delays, the effects of which can be not only stressful but also very expensive.

Non-bank lenders look at less reliable customers than banks. For example, those with a negative credit history in Jenny Card or entered in the register of debtors. It is worth knowing, however, that the price for a minimum amount of formalities and a simplified procedure for testing creditworthiness are relatively high costs. Borrowing money from a non-bank institution can be much more expensive than borrowing from a bank.

Bank or loan company?

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If we consider costs primarily as the selection criterion, the most favorable conditions will be offered to customers by banks. It is worth remembering, however, that the procedure for obtaining a bank loan is usually longer and more complicated than it is at a non-bank institution. Banks also apply much more restrictive creditworthiness testing rules. If you have an unfavorable credit history in Jenny Card or your data has been entered into the register of debtors, the chances of getting a bank loan are virtually zero. If you want to know how to check your Jenny Card, read the article: How to check your Jenny Card?

Non-bank lenders definitely look at less reliable customers. Many of them provide funding to people with low scores and to those who have been blacklisted as a result of debt. Loan companies also honor various, often non-standard, sources of income. An installment loan can be obtained by a person who obtains income from an employment contract, civil law contract, business activity, retirement or disability pension. Many companies also accept revenues from the Family 500+ program, and even maintenance. And for many borrowers this is a great asset.

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