What is a cash loan
A cash loan is a short- or long-term debt that is granted under the provisions of the Civil Code. In contrast to a cash loan, the lender can be either a bank or a private company or a natural person – the prerequisite for such financial assistance is not having own business.
Cash loans are usually available in banks and in the so-called parabanks, that is companies specializing in granting loans. Importantly, this is not a purposeful commitment, i.e. money obtained in this way can be used in any way.
In addition, non-bank loans can be divided into several different types. Due to the method of granting them, cash loans without Retrodatabase, loans for evidence, online loans, social loans, loans under a promissory note, loans secured or mortgaged and private loans are distinguished. What are they characterized?
Cash loans without Retrodatabase are granted without checking the credit history of customers, it is the most frequently chosen solution for indebted people. You can get a loan for proof without providing a certificate of earnings, the type of employment contract you have taken or without a bank account statement – all you need is a personal ID card. Online loans differ from the previous ones, that all formalities are done online – no visit to the parabank branch is necessary. Here it is worth knowing that an online loan can be both an obligation for evidence and granted without Retrodatabase.
Private loans are taken out by individuals. In contrast, social loans are one of the forms of private debt that is possible due to the creation of platforms connecting the borrower with the lender (a private person). A promissory note is a document enabling direct court enforcement of your assets, which is why in the case of irregularities in loan repayments, bailiffs may take up your salary or movable property under the promissory note. Secured loans (movable) or a mortgage is a liability with security, which becomes your home, flat or other valuable thing, like a car.
In addition, due to the amount of debt and repayment period, the loans can be divided into installments and so-called payday. Installment cash loans usually amount to higher amounts and can be spread over 30-33 months. On the other hand, payday loans allow you to obtain cash “on the spot” for a very short repayment period, usually from a dozen days to a maximum of one month.
To find out which of these options is the best, use the cash loan calculators to check their terms.
For whom does a cash loan without certification?
A cash loan without certificates is most often given only as an ID card. The client is not required to provide basic certificates documenting the type of employment or amount of earnings. This is a frequent solution chosen by m.in. unemployed people working on the so-called junk contracts and low income.
Due to the fact that this type of financial liability is not secured in any way, cash loans without certificates are only granted for lower amounts – in this way, the parabanks are protected against the risk of delay in repayment of debt. The most popular type of loans of this type are payday loans.
Online cash loan – how to receive?
Currently, both banks and parabanks allow you to take out an online loan, where all formalities are dealt with online. How does it look like? On the websites of these financial institutions there are applications / forms that just need to be filled in. Depending on the amount of the commitment, they can be awarded as evidence and upon presentation of additional documents, with the difference that their scans / photos are sent electronically, rather than delivered personally, in the appropriate branch.
A characteristic feature of online cash loans is also the fact that the decision to grant or reject an application is made very quickly – usually within the same day. Thanks to this, money can instantly be on your account. In addition, it is worth checking the comparison of cash loans in order to find the most profitable offer.
A cash loan at the customer’s home
A cash loan at the customer’s home is the solution most often offered by paraffins. What is it about? All you need to do is apply for financial assistance and the loan company employee arranges a meeting in your home or apartment, where the contract is finalized and the money is delivered.
This offer was created mainly for people who have limited physical fitness and for older people who can not cope with using a computer / internet.
However, you must realize that usually the final cost of a cash loan at the customer’s home is higher than the standard one. This is because the parabanks must include employee employment, travel costs, etc.
Comparison of cash loans at banks
Comparison of cash loans in banks is possible thanks to the existence of online tools, such as calculators and comparison engines, which collect offers from various banks. How do they work?
It is enough to specify basic data, such as the amount of debt and the repayment period, so that the system automatically generates a list of loans that meet your expectations. All information about the offers are standardized, thanks to which you can see at a glance where the lowest interest rate is, the APY and what is the total cost of the commitment, including commissions, preparation fees and registration fees.
When comparing banks and cash loans, special attention should be paid to the Real Annual Interest Rate. It may be that the interest rate in bank X is higher than in bank Y, but it is there that there is a more profitable offer, because the APRC, or the index determining the total cost of the loan, is lower.
It may also be a good idea to compare the cheapest cash loans that can only be granted by banks. Most often they can refer to much higher amounts than loans and have lower interest rates. However, you must know that when granting loans, the bank will verify your creditworthiness, i.e. carefully check income and history in debtors’ databases.
How to search for private cash loans or parabanks?
On the internet you will find comparison of cash loans offered by parabanks. Their principle of operation is exactly the same as in the case of banks – the amount of financial aid and the repayment period should be specified in order to immediately obtain a transparent list of results.
Such a comparison of cash loans makes it easier to find oneself in a maze of offers, it also eliminates the tedious search of browsing each web page of a parabank separately. Thanks to the fact that the results and basic terms of the offer are presented one above the other, you can visually assess where to borrow.
Ranking of cash loans
Quickly checking offers also allow you to rank cash loans. In them, only the most profitable products are compiled, and the basic terms of the contract are analyzed by the experts. However, you have to be careful about out-of-date rankings, which may come even two or three months ago and on the so-called sponsored rankings, commissioned by a specific loan company. A comparison of cash loans can be made in a similar way.