We have a lot of ways to get cash online. The most famous are, of course, cash loans offered by all banks. We also have credit cards and account limits on the market. However, all these products have one drawback. To obtain them we must have adequate creditworthiness. In other words, we must have stable employment and adequate earnings. Installment loans come online. It is a great alternative for customers without sufficient creditworthiness.
Types of loans online
There are different types of loans online. In principle, we can skip traditional cash loans here, as their granting governs a completely different law than loans and payday loans. Loans can be divided into those granted by loan companies, i.e. parabanks and by individuals through special websites. They are called social loans. In the case of loan companies, we can talk about installment loans, such as in the title of this article and the so-called payday loans granted for a short period of time. They are characterized by the fact that the borrowed amount must be repaid in one installment before the due date. This usually takes 5 to 45 or 60 days.
Installment loan online or one-time payday loan?
The choice of the form of the loan depends on whether we have the means to repay it. If we know that within a month we will have enough cash, it is worth considering the option of quick payday pay. We will definitely pay less interest then, and maybe we will come across a promotional, free offer. If we already know that in the near future we will not have the funds to fully repay the loan, we should think about the option of installment loans repaid for several months or a year. For the sake of high APRC we will pay slightly more costs, but we will pay the whole in convenient installments.
Conditions for obtaining a loan
You do not have to meet special requirements to get a loan from one of the many online loan companies. The whole process is maximally simplified and therefore loans are available to a wide range of clients. Some loan companies will not even check our history in BIK and will not require any earnings or employment certificates. To grant a small loan, all you need is a valid ID, providing all data, a verification transfer from the account registered to our data and acceptance of the contract. Everything takes several minutes and on the same day we can have the funds from the loan. This is a big advantage over bank loans, where the whole process takes much longer and it is necessary to present various certificates and a positive history in BIK.
How much are loans online?
Unfortunately, online loans are quite expensive to pay back. Their cost is expressed in the APRC value, well known for comparing bank loans. Only in the case of banks it is around 15%. In the case of loan companies, it may already grow to several hundred percent. The difference is quite significant. This is the result of a less restrictive approach to granting loans. We are not thoroughly checked, we do not need to provide additional security, so in the eyes of the loan company there is a risk that we will not pay the debt on time or we will not pay it back at all. That’s why we have to pay more to get the loan. It is also a kind of penalty for lack of creditworthiness. If we had one, we would easily get a bank loan on convenient, much better terms than an online loan.
To find the best loan offer for us at the moment, it’s not worth checking in turn what all loan companies have to offer. A much more sensible solution is to use one of many loan comparison websites, often in the form of rankings. They gather in one place all the attractive offers of loan companies and offer the cheapest ones. In some cases, we also have the option to enter in the box the amount we are going to apply for, and the system will check which offer is best for us. We will offer convenient installment loans or promotional payday loans which we will have to pay back in one installment within 30 or 60 days. Which offer we choose will depend only on us and our financial capabilities. After selecting a specific company, we will go to its website where we will be able to complete the loan application and check carefully the conditions for receiving the loan.