During life, almost everyone gets into an awkward situation for which they are not prepared. It requires more money and a monthly salary is simply not enough. Someone will be helped by the family, but when even this possibility is out of the question, there will be institutions that help their clients get out of unwanted and unexpected situations as easily as possible.
The speed of approval is crucial
According to the portal, according to a survey conducted on a sample of thousands people, it is no longer the interest rate that is decisive, but the speed of provision.
The problem, however, is that banks reject many clients because they do not meet strict conditions or require proof of documents, and it takes too long to process a loan.
Don’t despair that you won’t solve your financial problems, there are still non-bank companies. They come in handy especially when you want to avoid lengthy equipment and you need the money really fast. Such companies can be really useful, but you need to know how to choose the right loan and what things to look out for.
Interest is not the only important indicator
Before you get to a quick loan itself, you should know a few terms and their explanations, which are key before the loan itself. With a quick loan, you may choose one that you would not normally take at all and not even think about.
We are accustomed to advertisements that financial institutions promote the benefits of their loans through low interest rates. Yes, the interest rate is important, but it is only part of the whole expressed by the abbreviation RPMN.
RPMN, ie the annual percentage rate of charge, in addition to interest, also expresses other fees that you will have to pay around the loan, such as equipment fees, insurance and the like.
It used to be the case that the RPMN for non-bank loans was as high as 100%. The amendment to the law of April 2015 and the mandatory acquisition of licenses from the NBS have cleared the market of pofider companies, and currently non-banknotes must also comply with the established rules.
The popular quick loan from the Loan, for example, transparently shows the values of the interest rate and RPMN in their online calculator. When you move with the amount of the loan and the maturity, the total amount you pay changes.
When taking out a loan, it is important that you look not only at the interest rate, but also at the RPMN. The interest rate only expresses the interest, ie the fee you pay for the loan, but in RPMN you also express all other fees. For example, if you have insurance included in the loan, it is not calculated in the interest rate, but up to the RPMN. Therefore, you may pay more than you can tell.
Before you take out a loan, you should have an overview of all the fees you will have to pay during the repayment. Therefore, never sign any contract before you really have an overview of the fees and know how much, what all and for how long you will repay the loan.
Disproportionate installment amount
In this case, you should also be careful. Set up your installments so that you can repay them monthly and not just hope that they will increase your money for this or other fees. Everyone would like to get their debts out of their throats as soon as possible, but we should avoid extremes, because they could put us in a much more difficult situation in which you were before you took out the loan.
Don’t be afraid when the non-banknote will check you
On the contrary, it is a positive sign. The more information a non-banking company will have about you, the lower the risk you pose for it and the more advantageous you will get a loan. Your income may not have been enough for the bank, but even a lower income that you can document may be sufficient for non-bank loans.
Non-banknotes are routinely verified by:
- the amount of income that the employer will confirm to you or submit a tax return
- after the adoption of the amendment to the law in april 2015, non-banknotes must also look into the register of debtors and examine your financial past
The new non-banking company has stricter conditions for assessing applicants. While in other companies they also lend to mothers in kindergarten or retirees, it is necessary to document income from employment or business. This protects not only themselves from loans that clients would not pay, but also clients from loans that they do not have. They have already gained a number of satisfied clients for their short operation on the Slovak market.