The internet loans market, represented by non-bank companies providing so-called payday loans online. At the same time, the number of customers interested in using this type of online loans offered by the non-banking sector is growing. The widespread access to the internet and the development of technology mean that consumers are increasingly looking for loan offers without leaving home, which they can use quickly and conveniently using mobile devices or a computer. The departure from traditional credit product distribution channels means that online payday loan companies can also optimize their own business costs, and thus offer their customers cheaper and more attractive loan products as part of their online offer.
What is online payday loans?
Instant cash over the internet is a quick cash loan without leaving your home, which you can get by completing a simple credit application electronically available on a website belonging to a non-bank company. The process of granting payday loans is fully online – from completing the application, through verification, to disbursement of the loan to a bank account. Due to simplified verification procedures, as well as technological solutions automating the examination of creditworthiness, we have a chance to get a loan with minimum formalities fulfilled in less than 15 minutes. Funds in the form of online payday loans, in the case of positive consideration of the application will immediately flow directly to our bank account and will be used for any purpose. The advantage of using payday loans online, in addition to the speed of obtaining them and the availability of cash offered, is also the comfort and security of borrowing.
Although the maximum amount of loans granted by non-bank companies operating in the network is not high and usually amounts to several thousand zlotys, it is a great way to obtain external financing for people who urgently need cash to realize immediate expenses. Funds in the form of payday loans available via the Internet, as the name suggests, are borrowed “for a while”, i.e. for a relatively short period of time, usually one month.
The online micro-loan market in the form of payday loans also opens the chance to receive financial support for clients who are unable or unable to receive similar loans in banks. The reason may be insufficient creditworthiness of people whom the bank refuses to cooperate with, or simply a loan that is too small and which banks usually do not pay to borrow. Instant payments via the Internet may be higher than the funds available in the form of a credit card or account limit offered by banks, but loan companies are tempted by various promotions, e.g. they will allow new customers to take the first payday loan online. Special discounts are offered to regular customers who pay their liabilities in a timely manner, for example for occasional products such as holiday loans or payday loans.
Conditions for receiving payday loans online
Chwilówka via the Internet is a widely available product, addressed to a wide group of consumers interested in a relatively low amount of financial support, usually in the range of PLN 100-4000, made available for a period of not more than 30 days. To reach for instant pay online, it is usually enough to meet the minimum conditions – be an adult with an ID card, have any device with Internet access and a mobile phone, as well as a bank account (ROR), from which you must make a verification transfer for the amount of PLN 0.01 personal data declared in the assumed application. Due to the liberal conditions of granting and the wide availability of payday loans via the Internet, this type of product is also commonly referred to as a proof loan, a loan without formalities, or an instant loan. Most loan companies when granting micro loans do not require certificates of earnings of people applying for such payday pay – they only expect a declarative amount of monthly income, usually without further verification, e.g. in the place of employment of the borrower.
It is a myth, however, that everyone will receive instant pay via the internet. More and more loan companies providing payday loans online, due to their own business risk, as well as for the safety of customers themselves, are introducing systems assessing the credibility and creditworthiness of loan applicants. With each application submitted by a potential borrower, they obtain information about its debt and service (repayment timeliness), by sending queries to BIK and BIG and to KRD. All this in order that subsequent payday loans do not aggravate the financial problems of indebted consumers who are undergoing debt recovery proceedings or are threatened by the phenomenon of so-called debt spiral. Along with the development and maturity of the non-standard online loans market, we observe a gradual tightening of payday loans policy, and in some loan companies only every fifth application for a quick loan gets positive approval.
Free payday fee via the Internet
We will get the first payday fee via the Internet for free, without any fees or interest. It is a nod to non-bank loan companies towards new clients who reach for payday loans for the first time in a given financial institution. In this way, companies from the loan industry want to increase the scope of their Internet offer by potential clients and encourage them to continue using their quick and convenient credit solutions. The first payday loan will be free, provided that it is paid back within the prescribed period. Interest-free funds under the loan for free will be made available for a period of 30 days.
Is it worth taking a payday loan online?
Instant online payment is a good solution for people who cannot or do not want to take a loan from a bank, and funds in the form of a small loan are needed immediately. Online non-bank loans having an increasingly better opinion due to the transparency of the rules of granting, including in particular informing consumers about all fees associated with their incurring. Specialized non-bank institutions granting quick loans in their operations comply with both the provisions of the Civil Code and the Consumer Credit Act. This means that the costs of their instantaneous products may not exceed the ceiling set by law, thus securing the interest of consumers against excessive interest on non-bank loans.
What to look for when taking payday loans online?
If we decide to take out a loan, it is important that this is an informed and thoughtful decision. Above all, we need to be sure that we really need it and we will be able to return the funds borrowed on the declared date.
The online offer of payday loans offered to non-bank institutions is now so rich and varied that it is sometimes difficult for consumers to decide which loan they should choose. In order to make the best choice, you need to know all the costs associated with the loan, as well as understand every provision of the contract regarding the conditions under which it will be granted to us.
It should be remembered that the total cost of payday loans may consist of various fees, not only related to the interest rate on which the ads inform. These are among others:
– nominal interest, i.e. the amount of interest to be repaid,
– commission, i.e. a fee for providing payday pay,
– additional costs,
Payday companies have a legal obligation to provide the customer with all information related to the cost of the loan. To calculate it, the so-called APRC, i.e. the Actual Annual Interest Rate. Thanks to the APRC, we will know the ratio of all fees incurred to the obligation incurred. Knowing the amount of APRC we will know how much the payday will cost us and how much money we will give to the loan institution, except for the amount it lends to us. Thus, we will not be surprised by the total cost of payday loans, and it will also be easier for us to compare quick loan offers offered by competing loan companies on the internet market.
Before taking out a loan, it is also worth verifying that the payday loan company is reliable. For example, does its data provided on the website match those contained in the contract, or its appearance in the National Court Register and in the Central Register of Economic Activities, as well as whether it belongs to the association of the Loan Companies Association.
Using the quick and convenient payday service over the internet can bring many benefits, but remember that this is a product – as the name suggests – temporary, i.e. short-term. This means that consumers using quick loans such as a credit line or long-term loan must be aware that the costs of maintaining such a product in the long run can get very high. The debt spiral may be a consequence of a situation in which the consumer incurs subsequent payday loans to extend the previous ones, thus generating ever greater costs.