Payday Loans are still very popular in our country, mainly due to the possibility of obtaining an instant loan. New companies appear on the market from time to time, which try to attract potential borrowers with attractive financial services. The costs associated with granting loans depend on many factors, therefore, before you choose a specific offer, you should carefully read the detailed conditions.
What is a parabank?
Parabanków can not be identified with banks, although many of them provide similar financial services. The main difference is that their activities are not regulated by banking law. A potential client can use services only on the basis of civil law. Payday Loans are not subject to financial supervision, and also do not include their deposit guarantee system. Most of these types of companies operating on the Polish market specialize primarily in lending. In contrast to a bank loan, the Payday Loans offer instant financial assistance, reducing formalities to a minimum – often providing services completely online. What’s more, selected ones also offer support to indebted persons who appear in BIK or KRD databases. As a result, getting a loan in parabank is much easier than getting a bank loan, but it also involves a much higher cost of receiving financial support.
Fees for the loan
It is impossible to clearly specify the specific amount of fees for loans granted by parabanks. The increase in competitiveness means that more and more such financial companies offer their clients a free loan. As part of such a service you can get money on exceptionally preferential terms, without interest. The possibility of using such an offer applies only to clients who meet the repayment date, which in the case of free loans usually covers a maximum of one or two months. Unfortunately, this promotion concerns financial support for relatively low amounts, which are not always satisfactory for borrowers. The interest rate on loans in Payday Loans may even be several times higher than in analogous bank loans. However, it should be emphasized that the costs often also include a number of other additional fees. Many Payday Loans allow you to take advantage of the offer after paying a so-called verification fee by the client. Additional costs may also be related to loan insurance and handling fees. If someone wants to extend the repayment date, they also have to bear additional costs. The total amount of repayment is also affected by the fees for delay – that is why it is very important to comply with the agreed deadline.
Loans granted by Payday Loans are the fastest way to obtain financial support. However, one should take into account the costs of such assistance, which include not only high interest rates, but also a number of additional fees. The best proposals are short-term free loans, but they concern relatively low amounts.