In addition to popular and widely known payday loans, i.e. quick loans for small amounts of money, the offer of today’s loan institutions is also other, but interesting solutions. You can mention, among others, loan lines, which are the equivalent of revolving bank limits, and above all non-bank long-term loans repaid in installments.
The last segment of the offer of current loan institutions is particularly interesting because it is the attractive conditions of installment loans that primarily determine that many of the loan companies on the market are able to compete more and more with banks.
It is worth remembering, however, that customers also have different solutions to choose from in the area of long-term installment loans. Let’s take a closer look at this issue.
Long-term loans: standard offer
In their basic variant, the long-term loans available in the non-bank offer are the closest to bank loans when it comes to the mechanism of their operation. Also here we are dealing with loans for relatively high amounts (some lenders are able to offer us an installment loan of up to USD 40-50 thousand), as well as with a long repayment period, which in the case of some offers may be as high as 60 months .
The difference between installment loans and bank loans is, inter alia, that some non-bank lenders offer repayment in weekly rather than monthly installments. However, the differences are not over yet. The market also offers offers that allow you to pay out loans with a check, thus bypassing the banking system. Also, the process of verifying the creditworthiness of a potential client by loan institutions is, in principle, much less stringent than in the case of the banks’ offer.
Long-term loans for specific customer groups
A specific variant in which non-bank long-term loans are also available are loans targeted at precisely defined customer groups. On the market, therefore, we will find, for example, installment loans for motorists. Thanks to such a loan, the customer can, for example, renovate his vehicle or allocate funds to buy a new car.
Loans for financing medical treatments are another option. This option is becoming more and more popular and currently there are several dozen different clinics and surgeries which cooperate with loan companies in this respect.
Another specific and typical for the non-banking sector are the so-called debt loans, which should not be confused with consolidation loans. Debt loan is based on providing the client with financing, thanks to which he can pay off already existing debts. Obviously, both the process of applying for a debt loan as well as the mechanism of operation of this type of solutions will quite differ significantly from the offer of standard installment loans.