The financial crisis and, as a consequence, the banks’ increasingly restrictive approach to granting loans, have tarnished public confidence. People began to look for other forms of incurring liabilities. Such a possibility was provided to them by non-bank institutions granting loans in a simpler and faster way than banks. In recent years, Poles have been increasingly willing to use non-bank loans. But what are they characterized by and where did their popularity come from? What are non-bank loans
Non-bank loans are nothing but a loan granted to consumers by financial institutions – which are not banks – and private individuals. Here, too, is the difference between a loan and a loan. The former can only be provided by banks. Usually, such commitments are made to finance a specific purpose. In recent years, the growing popularity of non-bank loans has been noticed, which are becoming an interesting alternative to loans.
Increased interest in non-bank loans can be observed since around 2010. The financial crisis that began in mid-2007 has severely damaged public confidence in banks. To this day, there are ongoing disputes of probably the most media skirmish between banks and consumers in the form of “francs”, i.e. people who have incurred their obligations in the Swiss currency. In addition, as soon as the crisis began to be visible also in Poland, the Polish Financial Supervision Authority introduced many guidelines that banks were to follow when granting obligations to consumers. This was to minimize the credit risk incurred by these institutions. At the same time, however, this affected ordinary citizens, many of whom could no longer afford to commit themselves to the banks because, according to the new regulations, they had no creditworthiness. It is hardly surprising, then, that the less stringent lending companies have started to gain in importance.
Getting a loan from a bank is difficult and time consuming. All because these institutions carefully examine the creditworthiness of the consumer, minimizing the risk of not recovering money. On a trip to the bank you will need a proof of income and creditworthiness. Even then, it may turn out that the person concerned will not receive the expected money. The offer of non-bank companies is usually addressed to people who, for various reasons, cannot finalize a bank loan. Procedures and criteria for granting non-bank loans are not as complicated and stringent as in banks – usually a statement of earnings is enough. Of course, the amount of money that can be received is not as large as it is in banks – after all, 5 thousand. USD should be enough to cover the temporary holes created in the wallet. Non-bank loans are a great solution to such troubles – unexpected and sudden financial problems.
Non-bank loans are an interesting alternative to bank loans. The less complicated procedure for granting them makes them increasingly popular. Therefore, there are many indications that their flourishing is yet to come.