The loan is a basic banking product, but it exists in a number of different versions. To meet different needs, situations and requirements. But how can you find the “mine” in that amount?
For a loan, don’t just look at the price.
For a loan is not only important if it is the cheapest. It depends on many factors from the type of loan, the repayment conditions, and the provider is also important. Therefore, first of all the broad offer needs to be divided into two main parts: bank and non-bank loans, respectively loans from banking or non-banking institutions, such as Zaplo, Homecredit, etc.
Bank loans: with standard banking institutions, which are subject to strict supervision by the Capital Lender.
- lower interest – thanks to stricter CNB rules, banks can offer significantly lower interest on loans than non-banking institutions
- any amount – if you meet the requirements, the bank theoretically lends you almost every amount
- bureaucracy – processing a loan is usually quite lengthy, you have to submit several documents, the approval process is for a few days
- obligatory account – some banks make the loan conditional on opening an account
- control – some people are not happy about the fact that banks look into the register of debtors and require proof of income for the last year
Non-bank loans: these institutions also have to pass through a network called the Capital Lender, but the conditions are not so strict for them. This can sometimes be reflected in the quality of the products or solvency.
- quick loan – thanks to the possibility to set up an online loan, the application can be processed almost immediately
- simplicity – the loan can be easily arranged online or by phone
- no registry – there are loans without income confirmation, no registry. Some institutions also provide non-bank loans to troubled or indebted clients
- higher interest
- limited maximum loan amount
- lower credibility
If you have compared advantages and disadvantages and have chosen the type of provider, focus on the very purpose of the loan. Do you need a smaller amount and ideally without proof of income? There is a microloan or so-called payday loan, both up to $ 10,000. The sum of up to $ 15,000 will be lent, for example, by the so-called Japanese loan. There is a consumer loan or retail loan up to $ 500,000 to buy consumer goods or cars. Another option is an American mortgage, which is essentially a classic loan for anything (not only for housing costs), but where you guarantee real estate.
But the choice is far from over. There is a business loan (for natural persons), a revolving loan (credit card), leasing, (car purchase), a bridging loan (building savings loan), a home loan or mortgage loan, an overdraft loan (for a payment card ).
What do you need?
You have selected, now what do you need to handle the loan? First, make sure that you are able to repay the loan on time and it is really necessary. Debt for months or years for a new TV or vacation, think twice before and prefer savings. Make sure you don’t have the proverbial ball on your leg for a few useless things.