For larger expenses, it is difficult to get enough money from the household budget. Not everyone can afford to accumulate savings every month, so often the only way to raise funds is a loan or non-bank loan. These two products differ not only in the way they are awarded, but also in the restrictions on free use of money.
Non-bank loans and loans at the bank
bank loans and loans at the bank” />
A major limitation in the case of bank loans is that you must specify in advance the purpose for which the funds raised will be used. Therefore, you cannot freely dispose of the money received and you have to pay for it later in the bank. There are various types of loans available on the market, including mortgage, consumer or investment loans, and each of them is intended to finance a specific purpose. In the case of non-bank companies, the loan objectives are freely determined by the borrowers themselves. So there is no need to inform or document whether the purpose of the loan is about buying a new car or going on vacation.
Is it necessary to define the purpose of the loan?
Due to the fact that non-bank companies do not interfere in how the borrower used the funds received, no need to document expenses. Defining the purpose of the loan, however, is useful from the point of view of the client himself. It is worth remembering that non-bank loans are not only the possibility of quickly obtaining additional cash, but also the need to repay it later. Determining the purpose of the loan before you apply for it is a key issue to determine the amount of funding. Installment loans bear interest, so you have to be aware of the fact that additional fees will be added to the basic loan amount. If you need a loan for bills , you do not need to immediately apply for its maximum amount, as you may find that a small amount is enough to cover expenses. This will avoid high installments and quickly deal with the debt.
Purpose of the loan agreement – what do Poles borrow for?
Loans enjoy a lot of interest, as they help improve the quality of life and cover larger expenses. A loan for any purpose is a facilitation, thanks to which everyone can adapt it to their own needs. Spreading payments into installments makes it possible to apply for larger amounts that are not charged to the budget and are spread over a longer loan period. According to the conducted research, Poles are increasingly choosing a non-bank loan instead of a bank loan , precisely because of the lack of necessity to specify the purpose of co-financing. The chart shows what loans obtained from the non-banking sector are most earmarked for:
As can be seen from the chart, Poles are most often indebted to buy home appliances and electronics. In this case, usually a small loan with a shorter loan period is sufficient. However, if you need a car loan, you have to take into account the higher expenditure, so you should consider applying for a higher grant.
Holiday loan – does it make sense?
Most Poles approach financial management wisely, which is why they try to avoid incurring liabilities for unnecessary expenses. Of course, taking loans without a goal is not a good idea and it can lead to a spiral of debt. Therefore, it is worth analyzing in advance what amount is needed to finance the expense and how individual financial possibilities are shaped in this matter. However, you don’t have to deny yourself pleasure, because a holiday loan is also an important goal. Instead of charging the budget with travel expenses, you can apply for the amount you need and then pay it back slowly thanks to convenient installments.
Car loan instead of leasing
It is worth remembering that loans for any purpose are used not only by private customers, but also entrepreneurs. There is no limit to the granting of such a loan, which is why a car loan is a much better option than leasing. The main reason is primarily the loan period and limited formalities. When applying for leasing, you need to complete a lot of documents and meet certain conditions. Car loan is granted only on the basis of proof, and the money is transferred to the account in full, so you can choose even a used car yourself, without limiting yourself to the offer of a specific car dealer.
Renovation loan without own contribution
On the market of non-bank products, it is difficult to find an offer the amount of which will finance the purchase of a new apartment. However, when applying for a loan for any purpose , you can spend the funds to renovate the premises. The loan for renovation , in contrast to the mortgage, is granted on simplified terms, for a shorter loan period and without the need for an own contribution. So you do not have to enter into a several-year contract, spreading 10,000 dollars over 24 months. This does not mean that you need to immediately apply for the maximum amount, so you should estimate the initial costs of renovation beforehand to know how much money you need. A good idea is also a furniture loan , because in this way you can buy equipment from a private seller instead of buying in installments in a furniture showroom.
A loan for any purpose – when is it worth submitting an application?
Although non-bank companies do not require customers to document their expenses, it is worth defining the purpose of the loan agreement for yourself. Making a pointless application just because non-bank products are readily available is not a good option and can lead to debts. A loan for any purpose is an ideal option if you plan to spend more, and accumulating savings would take too long or would be impossible at all. Loan applications are reviewed on an ongoing basis and the money is immediately transferred to your account, which is why such a loan can also be helpful in an emergency.