Do you need quick financial help? Use the services of financial institutions. A possible solution is a bank loan or quick loan – payday loan. What is the difference between a loan and a loan ? The main difference is the fact that the loan is granted by the bank and the quick loan by the non-bank institution. What else is worth knowing?
What is a bank loan ?
Although information on financial products is constantly appearing on television or radio every day, few people are aware of the details of lending. The basic information is the fact that the loan is granted by an institution which is a bank. The customer is obliged by contract, on the basis of which he repays the debt together with accrued interest. The loan is usually granted for amounts greater than PLN 5,000. Although in recent years many formalities in banking matters have been kept to a minimum, banks still require, for example, income or employment certificates under an employment contract.
Are you wondering what are the pros and cons of bank loans ?
It turns out that if you need cash “for”, there are more disadvantages than advantages. First of all, all formalities in the bank must be taken care of by you personally. This means that you have to go to the facility, take your place in the queue and wait for one of the employees to be free to take care of your case. This does not mean that you will be granted a loan. You must provide relevant documents. If you forget something – you return to the starting point. A bank employee may ask you for a loan guarantee. This mainly applies to people who have precarious jobs. These are additional formalities that you must complete. At the beginning you also need to think about what credit you want to apply for – the possibility of allocating cash for a specific purpose depends on it. In the case of loans granted for higher amounts, you can also expect that the bank will offer you liability insurance – you do not have to use it, it is an unnecessary service on which bank employees earn.
Types of bank loans
As already mentioned – financial institutions, which are banks – offer various types of loans. Among the most popular you will find:
- consumer loan – intended for any purchase,
- mortgage – intended for the purchase of a house, flat or construction project,
- investment loan – granted for the development of an enterprise.
- Good to know : Among other offers that the bank may offer you is a credit card – a certain limit on the card, thanks to which you can pay for your purchases at any time. Banks also offer consolidation loans – in the case of several liabilities, they are combined into one, more favorable installment.
What is a loan – payday loan ?
A cash loan is a liability that is granted by a non-bank institution. Since in both cases it is about money – what is the difference between a loan and a loan ? A loan is primarily a much smaller amount of formalities that you need to settle. The interest rate can be higher, but you can get it much faster.
Internet loan – credit and loan differences
The biggest advantage when it comes to quick loans is that you can apply for them online. All you have to do is go to the website of the lending company, fill out the form and confirm your identity. Usually no certificates are needed.
Which is better – credit or loan ?
Considering all the pros and cons of both forms of commitments, it can be unequivocally stated that having a choice between a loan and a loan , the second option is definitely a better choice. You can arrange all issues online. You do not need a certificate and additional documents. You can complete all formalities regardless of the season. By using the offers of loan companies – you get various types of discounts, such as every 5th loan for free. You won’t get a better offer at the bank – you’ll always pay extra for the service.