Just a moment of searching is enough to find on the Internet a lot of companies offering cash loans on better or worse terms. They are an important alternative to cash loans offered by banks. Due to rather strict conditions of obtaining them, not everyone can afford the comfort of using low-interest bank products. Customers without adequate creditworthiness are forced to use the offer of loan companies in case they want to get into debt for a small amount. Just as in the case of all products, we can come across a cheap and expensive offer. In the case of financial products, this is particularly important because the costs may increase significantly if, for some reason, we do not pay the debt on time. In order to find the cheapest loan on the market at the moment, it is worth to check the ranking of cash loans. It is available on many websites and the information contained in it significantly facilitate the decision making process regarding the loan company.
What is a cash loan?
A loan is understood to mean putting money at the disposal of a lender. The terms and conditions of granting a loan are specified in the loan agreement. Such an agreement must be in accordance with the provisions of the Civil Code. Restrictive banking laws do not apply here and for this reason cash loans are more easily available than cash loans. Moreover, loans may also be granted by natural persons. The only requirement is that they must have sufficient funds to grant the loan. In the case of banks, money for loans comes from deposits from customers who keep the money in deposits or personal accounts. Interestingly, it is not necessary to write a paper version of the agreement in the case of low-value loans.
Ranking of cash loans
As we have already mentioned, the ranking of cash loans is a great help in choosing the cheapest loan. Thanks to it, we are not forced to laborious work consisting in checking all the offers available on the Internet. We will not have to spend the whole day comparing all offers and meticulous calculations. When you enter the loan ranking page, you will receive a current list of all offers available on the Internet. The most beneficial for customers will of course be at the top of the ranking.
In addition to the current rankings, it is also worth using price engines and calculators. Such a tool will allow us to calculate the cost of a loan for a specific amount and length of repayment. The offer may be slightly different depending on how much money and in what period of time we intend to repay it.
First free loan – What’s the catch?
Surely, while browsing through the loan offers, you came across a free loan offer. It sounds quite unusual, because the companies granting loans have to make money on something. So what is the catch? Well, it is not there. Some companies really give up their earnings when granting their first loan. They are only interested in gaining a new client. They assume that they will earn money while taking out the second and subsequent loans. In this case, the standard fees will already apply.
Free loans are granted for rather small amounts and with a quick repayment term of usually 30 or 45 days. Sometimes there are offers with a repayment term of two months. The only condition you need to meet to get a loan is to have a valid ID card. However, in order not to pay any interest or administrative fees, the entire loan must be repaid before the due date. Otherwise, the same fees will be charged as in the case of a traditional offer. And as a standard, loans offered by parabangs may have the APR even at the level of several hundred percent.
A bank loan as an alternative to a loan
If the loan is too expensive to pay off, we can try to apply for a loan at a bank. However, as we mentioned at the beginning of the article, getting a loan is not that easy. The rules for granting credit are clearly laid down in the Banking Law Act. That is why banks, by following certain procedures, cannot give credit with a light hand. Before they make credit available, our creditworthiness and history will be thoroughly investigated. If we do not do too well at any of these stages, we can forget about a positive credit decision. It is a kind of security against the risk of losing funds by the bank in the event of default by a dishonest borrower. Thanks to such risk mitigation, banks are able to offer much more favourable interest rates than loan companies, which do not x-ray their customers quite a lot of risk.
Categories: Business
