Financial problems can affect anyone at the least expected moment. Even a well-organized household budget and meticulously planned expenses are not always enough to maintain financial liquidity. Losing your job or having to finance a larger project means that you may run out of money for basic needs.
In such situations, many people try to borrow from a family or apply for a bank loan. An alternative to these solutions is a long-term non-bank loan . What makes it stand out from other financial products and is it worth using it?
What is it?
Customer expectations for financial products are constantly changing, which is why the loan institutions had to adapt to current realities. Traditional payday loans for 30 have gained considerable competition, thanks to loans for a long repayment period .
Such offers are characterized by the fact that they are very flexible and tailored to the clients’ needs. Long-term non-bank loans are distinguished primarily by a longer lending period and a precisely configured repayment schedule. Each customer can determine himself not only the amount he wants to borrow, but also the number of installments. Thanks to this, you can have a direct impact on the parameters of the offer and make its conditions dependent on your own financial capabilities.
When is the loan long-term?
The offers of non-bank companies are so diverse that it is difficult to clearly define when the loan is long-term . It is generally accepted that popular payday loans are granted for 30 days, after which they must be repaid in full. Currently, however, parabanks offer such loans for up to 60 or 90 days, which can be misunderstood as a cash loan with a longer repayment period.
Compared to long-term offers, even a 90-day loan period is not long, when parabanks lend money even for several dozen months. When looking for a definition for a long-term non-bank loan , you can specify that it is a financial product whose repayment is spread over monthly installments and the loan period lasts a minimum of 3 months.
How to calculate monthly installments?
Unlike payday loans , the repayment schedule of non-bank long-term loans can be set yourself. There is no need to perform complex calculations, because everything is done using sliders. Such an intuitive tool is available to its clients by Mr. Hyde, which is why you can set your cash loan parameters before submitting your application.
On the example of a USD 7,500 loan set for 16 months, detailed information about the total repayment amount, APRC and the monthly installment will appear immediately.
Who can take a loan for a long repayment period?
An important condition is that you have outstanding liabilities to the lender before you make another application. Due to the fact that non-bank loans mean a long-term commitment, one has to take into account the possibility of checking in the BIK databases. This does not mean, however, that a person who has arrears in repayment cannot count on a positive consideration of the application.
Many companies have a flexible approach to clients, which is why they also offer loans for those in debt as part of consolidation. An unfavorable history in BIK may also result in the lender proposing other terms of cooperation, such as a lower loan amount or a longer repayment period.