Family loan programs in loan companies

It would seem that the demand for loan companies’ products will decrease due to the government’s family program. Additional funding from the “Family Loan” project has reduced the demand for online loans only by a few percent.

Together with the expert, C. Dupin, we will look at the changes that have occurred after the introduction of new laws. 

Fewer loans for families?

family loans

The program introduced by the government supports large families and the poorest families. Although there is a change in the financial market in terms of co-financing from loans – families use them less. However, the decline in the popularity of online payday loans is not drastic.

Families no longer decide to borrow for USD 500, 800 or 1000, because sudden expenses can be paid with money from the family support program.

The “Family Loan” program is primarily to support, but also teach Polish families how to save. With financial help, Poles have something to pay for unexpected expenses. However, you can still see that there are still problems with higher-order costs. There may be various situations in our lives that we have no influence on – from a broken car to a flooded apartment or illness of a loved one.

Expenses related to them may exceed many people

family loans

At this point, it’s worth using an online loan. There are many payday loan offers on the financial market that can be tailored to your home budget.

Repayment of the liability should not be difficult, because the installment of the loan can be settled from the money received from the government program, “comments Tymon Zander, expert of C. Auguste Dupin.

A new target group for loan companies

A new target group for loan companies

The target group of the government program is families who, with an additional source of income, will not need another external financing. Therefore, loan companies are beginning to direct their offers to other social groups that are more likely to benefit from such support. Non-bank institutions have new proposals for young people who do not yet have families, and for seniors.

In their offer, they change the age of the borrower, and some do not even set an upper age limit. What’s more, the loan was usually available from the age of 21, and now more and more companies are turning to people who are at least 18 years old.

Non-bank institutions also have student offers or attractive loans for proof without certificates, which makes getting financial support from non-bank institutions easier.

If you want to check the criteria for granting payday loans online, you can use specialist loan comparison websites. You will find them on the C. Dupin website and quickly adapt the offer to your financial possibilities.

Do online loans compete with banks?

The Credit Information Bureau informs that there has been a visible drop in interest in cash loans for a long time. In March this year, Poles applied for cash loans, whose value compared to March 2015 was lower by almost 6 percent. These data come from BIK and are the result of monthly analyzes of the Credit Information Bureau on the amount of bank loan amounts applied for. Keeping these statistics allows you to track the level of interest in cash loans from Poles. 

Despite low-interest rates and thus low-interest cash loans, Poles are increasingly less likely to apply for additional funds in banks. They are increasingly choosing quick non-bank loans. BIK data shows that only in 2015, nearly 3 million Poles benefited from the services of loan companies, whose value according to ZFP estimates amounted to about USD 5 billion. In turn, research from Mock Loan and LiteCredit show that just before Easter, the services of non-bank institutions decided to use 14 percent. 

Change of regulations favorable for online loans

online loans

It can, therefore, be concluded that the growing interest in non-bank loans has its source in the change of regulations. Institution granting quick loans has long fought for a positive image, however, individual cases of dishonesty publicized by the media have effectively deterred many Poles from completing the online loan form.

The change in regulations and regulations regarding the cost of loans meant that Poles saw in this form of borrowing also other advantages such as the speed of processing the application and reducing bureaucracy to a minimum.

Comparing credit and loan offers

Comparing credit and loan offers

Poles’ awareness of economics is also growing. More and more people are paying attention to the total cost of cash loans, and not just the low-interest rates advertised by banks. It often turns out that despite low-interest rates, bank loans ultimately cost the same as quick loans, while the procedures for obtaining them are much more complicated.

High bank commissions mean that customers often prefer to complete a short loan form. Currently, the non-banking market offers consumers various ways to spread the repayment of liabilities – short-term loans are available – payday loans, installment loans and even revolving lines enabling customers to access funds non-stop.

The decrease in interest in cash loans is due to the growing competition from quick loans, which consumers can apply completely online.