Cash loans are the oldest product of the non-banking sector. They appeared in the late 1990s. Their biggest plus is the fact that the company representative transfers money at the client’s home. Cash loans can be used by individuals and businesses. Their amount depends on the financial liquidity of the borrower.
Cash loan – what is it?
Cash loans have been available since the late 1990s. Non-banking market, offering payday loans to people who, due to their poor credit history, could not apply for a consumer loan at the bank.
Currently, despite the dynamic growth of online loans, cash loans are still the most popular product of the non-banking sector. It is estimated that companies offering this type of services have about 50 percent of the entire market.
Cash loan at the client’s home – BIK scoring
Loans without BIK do not exist. Banks have a statutory obligation to check the customer at the Credit Information Bureau. Scoring is important when making a loan decision. Loan companies, on the other hand, check clients in debtors’ registers voluntarily. Also, the procedure for applying for a non-bank loan is maximally simplified.
A big plus of the cash loan is that the money is delivered directly to the customer’s home. The borrower orders the service by phone. Then, along with the documents and money, a representative of the company comes to the borrower’s place of residence.
The liability is usually repaid in installments. Depending on the loan company’s policy, the debt is regulated in weekly or monthly payments. In order to donate money, you should meet with a company representative.
Who can apply for a cash loan?
Cash loans can be obtained by adults. Usually, non-bank institutions require an income certificate. All types of contracts are honored – employment, commission and work. If the borrower has no documented income, he can provide paid utility bills – e.g. electricity, gas.
Important – the cash loan is directed to individuals, entrepreneurs and self-employed.
What amount can I get under a cash loan?
The amount of the cash loan ranges from several hundred dollars to several thousand. The key is to match the amount of the liability with the repayment options. Therefore, before taking a debt, it is worth using the loan calculator or calling a representative of the non-bank institution.
Also to the height of External financing is affected by the chosen form of repayment. People who have decided to pay the weekly debt should be aware that the amount of the loan will be lower than in the case of a monthly installment.
It is worth emphasizing that, unlike a bank cash loan, the borrower does not have to indicate the purpose for which he incurs the obligation. As a result, the money received can be distributed as desired. Interestingly, people who have borrowed money for a company can enter the amount of interest in the cost of doing business.
Online and secured loan – other offers from the non-banking sector
Due to dynamic technological development, online loans are increasingly becoming a piece of non-bank cake. For these types of products, the entire loan application process – from submitting the application to receiving the money is done online. There is a high probability that due to the digitization of money, online payday loans in a few years will be available for cash loans.