Payday loan is quite rightly associated with a quick, low-value cash loan that can be obtained in a very short time. The loan amount usually amounts to a maximum of several thousand USD. However, there are also slightly higher payday loans in installments. Is it worth to decide on them? Criticism at http://www.megaera.org/infinity-dance-task-holding-company-auditions-in-a-few-days/
Payday installments – what is this product?
The offer of loan companies is becoming more and more extensive every year. Despite the lack of specific regulations conditioning the functioning of such institutions and granting loans, they work quite well.
They are limited by interest and non-interest limits set out in the Anti-usury Act and in the Consumer Credit Act. They must comply with the provisions arising from the Civil Code and register in the Register of Loan Institutions kept by the Polish Financial Supervision Authority.
It is worth emphasizing that payday loans with one-off repayment at the end of the loan period, granted without unnecessary formalities, are not the only product that can be found in the offer of loan companies in Poland. They also grant other loans. They are installment payday loans.
You can also find the term “payday loans in installments”, although it can be confusing. A loan is a financial liability granted by banks and banking institutions under the Banking Law. Meanwhile, installment payday loan is more a non-bank loan.
Payday loans are non-bank financial liabilities granted to clients on simplified terms by loan companies. This product is available to a wider group of users than e.g. a cash loan in a bank. You do not have to meet so many conditions and submit attachments to your loan application to get the desired amount of money.
The payday loan is usually a liability that is incurred quickly, but the repayment period is not longer than 12 months. Therefore, payday installments without certificates will be characterized by the fact that the amount of money borrowed from the loan company will have to be repaid in full, together with interest and other fees, in a maximum of 12 monthly installments.
Before this happens, the loan company will conclude an appropriate contract with the borrower and set a repayment schedule for the financial liability.
What are the conditions for payday loans in installments?
Usually, the offer for payday loans in installments is directed to customers who have already taken out loans in a given non-bank company. New customers are usually offered payday loans with a one-off payment. Requirements for potential borrowers may differ depending on the company’s loan policy.
Often, lenders offer payday installments without BIK, i.e. without checking the client’s credit history at the Credit Information Bureau. The client of a loan company can only be an adult, who is a citizen of the Republic of Poland, with an ID card and own bank account.
As installment payouts usually go to the accounts of current lenders’ clients, there is no need for them to undergo the verification procedure via, for example, a transfer of a symbolic amount. If an earlier loan from a given lender has been repaid on time, another payday installment will be granted immediately, with a simplified formal process.
Often, it is enough to submit a loan application in installments, so that after verifying the history of cooperation with the loan company and possibly creditworthiness, the loan company grants such an obligation.
Payday installments or one-time payments?
The choice between installment installments and repayments at one time is actually quite simple. If a customer needs money in the shortest possible time, e.g. in order to buy something occasionally, or he lacks funds for a tourist trip, he can quickly and effectively apply for payday loans. He’ll have to pay it back in the next month or two.
Installment payday loans are a good solution for people who need more money quickly for any use. All because the payday loans in installments can be taken even in the amount of several dozen thousand USD. They are repaid in installments, every month, in the appropriate repayment schedule. Loan companies usually grant payday installments for up to 12 months.
Payday loans payable once are repaid much faster than installment payday loans, therefore their total cost charged to the borrower may be similar or even lower than when borrowing for a longer period.
Spreading the payday loan in installments means that the single payment charge becomes very low and can be borne by the borrower’s home budget. Therefore, it is a good alternative to cash loans, which are also repaid in installments.