Contemporary payday loans and installment loans: a quick guide



All available statistical data prove that customers are increasingly choosing non-bank loans. While even a dozen or so years ago the industry of solutions such as popular payday loans could be considered as a margin at most compared to the banking sector, modern loan institutions are increasingly serious and more and more like competition for banks.

Contrary to stereotypes, often repeated by the press, the offer of modern loan institutions except the offer of banks not only in terms of availability. Today’s loan institutions are often able to offer loans on simply more attractive terms than banks do. In addition there are numerous additional attractions to mention here for example the offer of first loans with an APRC of 0% or loyalty programs for regular customers.

The offer of the modern loan industry, ie not only payday loans

The offer of the modern loan industry, ie not only payday loans

When we talk about the loan sector, the vast majority of us probably think only of quick loans for small amounts and with a relatively short repayment period. In reality, however, the offer of today’s loan institutions is much richer. Of course, popular payday loans are still an important element of this offer, but they are by no means the only element. An increasing number of companies specialize, for example, in long-term installment loans. In addition, the offer of modern lending institutions will also easily find solutions such as loan lines, secured loans or loans dedicated to specific customer groups, eg motorists or people in need of medical treatment financing.

As for the payday loans themselves, they are also currently very diversified. In addition to loans with a repayment period of up to 30 days, customers will also find offers where this period is at the level of 60, 90 and sometimes even 120 days. Also, the maximum available amounts of payday loans vary significantly depending on the characteristics of the lender’s offer.

What else can you count on when borrowing off-bank?

What else can you count on when borrowing off-bank?

Of course, promotions and different repayment terms are not over yet. Currently, loan institutions very often offer their clients, eg the option to extend the loan or refinance it, thanks to which we can avoid problems related to the lack of timely repayment. The option of paying out the loan amount via the check is also becoming more and more popular, ie with the complete omission of the so-called banking circuit.

You also can’t forget about extensive loyalty programs. They are offered by both loan institutions providing payday loans and lenders specializing in installment loans. Of course, a very common promotion option is now the possibility of taking the first loan at the APRC of 0%, so without any costs.

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