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.

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