According to recent data, payday loans are becoming more and more popular year by year. Statistics make it clear that borrowing quick cash is more practical and popular than bank loans.
Why such a phenomenon of popularity of this not entirely transparent financial product?
Reaching for cash in small amounts resulted in non-bank companies achieving high popularity status. Fast repayment of such cash even in a week, because such payday period is also available, offered customers a completely different dimension of using loans. The minimum payday loan can be only USD 50 and the maximum amounts borrowed in this type of loan are up to USD 50,000. Flexible repayment options ranging from a week to even 3 years, where repayment can be split into installments have made Poles like online loans.
In addition, formalities that are required by non-bank companies have contributed to the popularity of this form of quick loan. Is so-called A minimum that is enough to receive payday pay. Larger purchases related to the celebration, weekend trip or some larger purchase can be successfully financed by this type of cash. In addition, some companies allow you to borrow money only on proof, which means that everyone can apply for such money. In this case, non-bank companies do not require any employment or income certificates.
Payday loans products are extremely popular
According to the latest research, the number of customers who use bank loans is falling. The banks’ offer is usually based on specialized scoring calculations which decide whether the client will receive a loan or not. The multitude of forms to be completed at the bank branch does not attract as many people as payday loans.
In the case of payday loans, the incurring of cash and repayment within the deadline according to the contract is not charged with additional fees. So in this case the only costs that the client pays are interest on borrowed money. However, the comfort of using such cash is often more valued than the interest that will be paid to customers.
According to recent quotations, in 2016 banks could boast, but unfortunately a decline in interest in loans at 6.5%. The non-bank sector, on the other hand, scored as much as 18% in short-term loans. If the growth trend is maintained, one can expect a larger range of products available in the offer that will continue to compete with banks.