When deciding to take out a loan, many of us wonder whether to use a banking institution when taking it or whether to opt for non-bank institutions, which today are very large and tempt us with extremely favorable conditions.
When making such decisions, it is worth considering all the pros and cons of the side of each of these two solutions.
If we questioned the public, we would certainly find the same number of supporters of both non-bank loans and those of banks. The decision which solution to choose depends, however, to a large extent on our individual preferences, as well as on the amount we want to borrow and the time we want to spend on paying off our debt. Then it will be easier for us to choose a specific solution.
Similarities of bank and non-bank loans
When looking for similarities in both types of loans, one should pay special attention to the number of loans granted by both banks and non-bank institutions. They are basically the same. In practice, this means that thinking of the amount of ten thousand, we are no longer doomed only to a bank loan.
More and more non-bank institutions grant loans for very high amounts. That is why they are so popular. The similarities also apply to installments spread over a longer period of time. Not only banks are tempting with small installments, but also in non-bank institutions, we can count on a favorable distribution of debt over time and thus lower installments.
Differences in the bank and non-bank loans
As for the differences related to bank and non-bank loans, there are many more than the similarities mentioned above. Thanks to these differences, however, it will be easier for us to decide which option we prefer. First of all, it should be emphasized that we will not get a bank loan via the Internet.
Of course, banks give us the opportunity to submit an application via the website, but after it has been positively examined, we will have to complete all formalities at the bank’s outlet. The situation is different in the case of non-bank loans. Here, we can take care of all formalities via the Internet, and the loan amount we are interested in will be transferred to our bank account in a short time.
There is no doubt, therefore, that taking out a non-bank loan is much simpler and faster because it does not involve lengthy procedures. The process of verifying a customer wanting to take out a loan from a bank is also longer. Banks check the applicant’s credit history in detail.
Non-bank institutions, in turn, offer loans to their clients without reaching for the Credit Information Bureau. It is worth noting, however, that such loans without BIK are granted up to a certain amount.
Above the amount, the non-bank institution also reaches for our credit history. If you want to take out a loan from a bank, you often have to have an account there, which is not the case for non-bank loans. In turn, a bank loan often has a more favorable interest rate than that offered by non-bank institutions.