In each of our lives there may be a situation that we will have to borrow money. It is worth knowing the available options in such a situation. Many people are limited only to loans in banks, but is it always the best solution? As you can easily guess, it is not necessary to know the alternatives.
Loans from friends, acquaintances and family
For many people this is the first thought that we need money for. However, is it always a good solution? Certainly not. First of all, when we borrow from loved ones, they automatically know about our financial problems, and this makes them start to worry about our situation.
Many people also do not want to burden their relatives with their problems – many people cannot refuse to help their family without being in a good financial condition. In this case, asking for help could get your loved ones in trouble. To all this comes the shame – many people are simply ashamed to admit that they are in financial difficulties. Therefore, they do not want to ask for help from relatives.
Banks or non-bank institutions?
In this situation, there are two main options – taking a loan from a bank or taking a non-bank loan. Most people go straight to the banks, but is this the right solution?
Not really – banks are a great place when you need to take a larger loan, e.g. for a few to several thousand zlotys. If you need smaller amounts, e.g. several hundred zlotys, then you may have trouble getting a loan. In many banks, the formalities process is quite long, you often have to go to the bank in person. Therefore, it is not a solution for people who need a quick cash injection.
An interesting alternative is non-bank loans, which are great when you need a smaller injection of cash. A non-bank loan may be as high as several hundred zlotys. In addition, this type of loan is often very flexible – you have a lot of freedom when it comes to the conditions under which you will get the loan.
In addition, non-bank institutions often struggle for new customers by offering them first loans on attractive terms – it’s worth taking advantage of such promotions when you need an injection of cash.
Is taking non-bank loans safe?
There are many myths about non-bank loans on the internet. Starting with warnings like “you will fall into a spiral of debt,” ending with stories of chasing gangs. Unfortunately, most of these stories have little to do with reality. The truth is that non-bank institutions, like banks, are subject to Polish law, must comply with it. When you take a non-bank loan, just like when you take a loan from a bank, you sign a contract that describes exactly how you take out the loan. The entire contract is transparent and there are usually no “tricks” here.
Of course, when taking a non-bank loan, you should be as cautious as when you sign any other contract. First of all, make sure that the company you want to borrow money from clearly shows what the total cost of the loan is and what amount you have to pay back. Remember at the same time that most non-bank companies have a very extensive customer support department that you can always contact and you will receive help quickly if you have any doubts.
Summary – where is the best way to borrow money?
In this article, we’ve presented the two best options when it comes to taking out a loan. If you need a smaller injection of cash, then a good choice is non-bank loans, which are very flexible and allow you to borrow low sums of money on attractive terms.
If you plan to borrow a larger sum that is not offered by non-bank institutions, then you have to apply for a bank loan.