Banks offer loans and credits. Non-bank companies only offer loans. Do you know the difference between loans and credits? What should you know about these products?
“Credit” and “loan” are terms that many people use interchangeably. This is a big mistake, because the difference between them is very large. If you have not borrowed money before, and are now thinking about reaching for additional funds, find out whether you should apply for a loan or maybe a loan.
Credit? Only at the bank
The basic issue is that loans are only granted by banks – you will not find such a product in the offer of non-banking companies. Why? Because this is granted on the basis of the banking and consumer credit laws. As a result, non-bank companies cannot offer it – you can only sign a loan agreement with a selected bank.
When it comes to credit, one cannot forget that it is distinguished by its purposefulness and payment. This means that the loan is always granted for a specific purpose (e.g. purchase of a car or apartment), and the bank has the right to charge interest, which is its earnings. Moreover, as money lenders often forget, the bank has the right to check whether the money borrowed by it is spent in accordance with the purpose declared in the application. If not, this fact may be the basis for terminating the contract by the bank and demanding immediate repayment.
The banks’ offer includes loans for both individual clients (e.g. mortgage) and entrepreneurs (e.g. overdraft facility).
What to remember when taking a bank loan?
A bank loan is cheaper than a loan. What’s more, you can take out a loan for a long period, even several dozen years (e.g. mortgage loans are granted for 30 years). For a credit agreement signed with the bank to be valid, it must be drawn up in accordance with the regulations. We are talking here that the contract must be made in writing, and its content must include information, among others about:
- total cost of credit,
- the interest rate the bank will be entitled to charge and the conditions for changing it,
- additional fees charged by the bank (commission),
- the method of securing the loan (collateral is applied even in the case of mortgage loans by establishing a mortgage on the property purchased by the borrower),
- terms of withdrawal (both by the bank and the borrower).
You can apply for a bank loan by going to a bank branch or by filling out an application on the website. However, you must know that in the second case you will not be able to go without a bank visit – you will have to, for example, provide a certificate of your income. When applying for a loan, you must also be aware that the bank will check your credit history, directing applications to databases collecting information on the liabilities of natural persons, e.g. BIK.
Loan? You will receive this without unnecessary formalities
If you do not want to disclose the purpose for which you need money and do not need a large amount, then it is a good idea to apply for a loan. You can get one without unnecessary formalities, and you can apply for it both in the bank and in a non-bank company. Pursuant to the applicable regulations (more specifically the Consumer Credit Act), non-bank companies may grant loans and use this option.
What is the difference between a loan and a loan?
- loans are not only about banks – you can take advantage of a very wide range of non-bank companies,
- the loan agreement does not have to be in writing (although it is recommended to write the agreement for reasons of evidence),
- both banks and non-bank companies very often do not require potential borrowers to provide earnings certificates,
- non-bank companies grant loans without checking applicants, e.g. in the BIK database (so-called loans without BIK).
Depending on the loan amount, you can pay it back once, you can also pay in installments (so-called installment loans).
If you want to get extra money quickly, it’s best to use one of the many non-bank companies that allow customers to apply for a loan online. As a result, you can receive money even within 15 minutes.
A loan without BIK or a loan for 0 USD?
Did you know that some non-bank companies offer loans even to customers with a negative credit history? I am talking about so-called loans without BIK – in this case the non-bank company does not verify the applicant’s credit history in the BIK database. Do you have a good credit history? Do you urgently need a small loan? You haven’t borrowed money from non-bank companies yet? In that case, take advantage of the option of borrowing money without costs – we are talking about the so-called loan for $ 0 The first loan is really free – you will not find such an offer in any bank operating on the Polish market.
Are you interested in a $ 0 loan? We publish a list of companies in which you will find such loans. In addition – for your convenience – we’ve collected information about the maximum amount you can apply for when applying for a loan for the first time.