A loan is a financial product that only banks and Credit Unions can offer. Due to this fact, loans are regulated only by banking law. In turn, the loan is subject to civil law guidelines, and it can be provided by both institutions and individuals – in a word, every entity that owns the borrowed funds.
The main differences between the loan and the loan
Differences between the loan and the loan can be seen at the beginning, at the time the contract is concluded. In the case of a bank product, the contract is a written document containing the parties to the contract, the purpose of the loan, the repayment date, the interest rate and the commission. However, in the case of a loan, the matter is much simpler. The loan agreement may be concluded in any form, including oral, but with a small caveat – if the value of the loan exceeds PLN 500, it should be recorded in writing. In the case of a loan, both the purpose and the repayment date may remain undetermined, there is also a large amount of freedom in the interest calculation.
A loan is a form of co-financing which does not require any special creditworthiness and is theoretically easy to obtain. Especially online loans are a popular product among clients of financial institutions. Although many people wonder whether non-bank loans are safe , their concerns, though motivated, are not needed. You can easily find a reliable lender .
Both payday loans and installment loans are also characterized by the fact that we do not have to worry about the pile of unnecessary documents and certificates that banks usually want. Although you do not need much to apply for a loan, sometimes the application will be rejected . Another issue is also the fact that the loan is usually taken for a specific purpose and most often the banking institution will want to find out what exactly we need money for. With the loan, we do not have to explain, and all parameters are set by ourselves.
We will also be more thoroughly verified in the bank. If we have a small amount of arrears in repayment of other liabilities on our conscience, asking for additional funds is worth asking for loan companies. There is a greater chance that the lender will turn a blind eye to the client’s previous mistakes – in the bank, we will most likely be sent back with a receipt. Of course , non-bank institutions will certainly verify our credibility and credit history, but we can count on a milder assessment. It is worth checking how loan companies verify their clients .
Free loan exists!
Loans available in bank offers are often attractive but difficult to obtain. Banks put high demands on borrowers. The situation is different in the case of loan companies, which have recently been increasingly introducing promotions – for example, free payday loans. Such obligations are actually 100% free, because we will not pay either commission or interest – we will give back exactly as much as we borrow. If we are interested in such a profitable solution, it is worth checking the offers of companies on an ongoing basis, for example using loan comparison engines .
Loan and loan in the bank
Although the concept of a loan is reserved exclusively for banks, we must remember that not every financial obligation incurred in this institution will be a loan. Banks increasingly often provide support in the form of loans. In this way, they try to compete with the offer of loan companies that attract an increasing number of customers.