Installment and community loans, payday loans – what are the types of loans?


Loans are popular financial products, they are available both in banks and in loan companies or on special platforms. Bank and non-bank loans are listed among the most frequently chosen. What should you know about specific types of loans?

What are the types of loans?

What are the types of loans?

The general breakdown includes bank and non- bank loans . The former can only be obtained from banks, they resemble cash loans to a large extent. They are easier to obtain, although, of course, the bank’s standard verification procedure is maintained. People with a negative history in BIK are unlikely to count on such a commitment. There are also mortgage loans, which, unlike housing loans, can be used for any purpose.

However, more types apply to non-bank loans. These include installment loans , payday loans and even social loans . They differ not only in such parameters as interest rate or repayment form. The loans and their characteristics, where you will learn how to apply for such products and what to look for when choosing them.

Payday loans – popular loans without certificates

Payday loans - popular loans without certificates

Payday loans stand out among the most popular non-bank loans. These are liabilities incurred for a short period of time , you can apply for up to several thousand. The type of repayment is characteristic of them. The liability should be settled once , usually after 30 days. Otherwise, high interest will be charged. Payday loans are loans that are relatively easy to get. Most companies do not have high requirements for customers, some do not even check their credit standing or credit history. That is why we even talk about payday loans without BIK and KRD or payday loans for those in debt.

Installment loans outside the bank

Installment loans outside the bank

In addition to payday loans, non-bank installment loans are also very popular. These usually apply to higher amounts than payday loans . Most often it is even tens of thousands of dollars. This product resembles a bank cash loan. Installments are paid regularly according to the agreed schedule. Usually it is not required to state what the money will be used for. Customer verification is also less restrictive than for banks.

Social loans – what are they?

Social loans - what are they?

Social loans are an alternative to bank loans and non-bank loans. They operate on a peer to peer basis . The idea for this form of borrowing money was born in Great Britain, it came to Poland only in 2008. How does this social loan work? First of all, it is a contract signed between private persons . It is not mediated by banks or private companies, but loan platforms . On the pages of such sites you can find offers of social loans, check the repayment time, how the verification looks, whether a surety or pledge is required. However, this does not mean that such loans are free of costs. They also bear interest, a commission is charged, a fee for additional verification, extension of the loan period, etc. You also have to pay a loan tax of 2%.