We often use the terms “payday loan” and “credit” interchangeably
However, not every one of us is aware that they are completely different financial products from the formal point of view. What are the main differences between a payday loan and a payday loan?
Both the payday loan and the payday loan rely on the same – borrowing money. Hence the interchangeable use of these terms is derived. In reality, however, we will not get credit in any financial institution, and we can get a payday loan even outside. If you want to know what is the difference between a payday loan and a payday loan, we invite you to check it with us!
After the payday loan only to the bank
First of all, we can only get a payday loan from the bank, because only these institutions are entitled to grant them. Banking law accurately indicates that granting payday loans is a “banking activity”. As a consequence, it is also associated with a number of requirements and consequences.
The payday loan agreement must necessarily be in writing. The document should include the information indicated, including the amount of the payday loan, the interest rate and the terms of its change, the amount of commission, the repayment date. Also, the payday loan must have the indicated purpose – if it turns out that the borrower has used the money in a different way than the purpose of the payday loan, the bank has the right to demand their return.
A comprehensive payday loan
In turn, the payday loan is a much wider term. The lender can become an institution like a bank or a payday loan company, we can also get a payday loan from a civilian, for example from a family or friends. A payday loan can be granted by virtually everyone. The main rules for granting payday loans are regulated by the Civil Code.
Compared to the payday loan, the rules on which payday loans are granted are already looser. It is no longer necessary to specify the purpose of the payday loan, and detailed rules for its granting may already be agreed between the lender and the borrower. For example, a payday loan may have no interest rate, commission, preparation fee. There is also no requirement to prepare a contract, but it is good practice to write it, especially above the sum of 500 zlotys.
Where for a good payday loan?
As we have already mentioned, the payday loan is available to various institutions – primarily banks and parabanks. However, the fact that each of them grants payday loans does not mean that they have the same conditions.
Cash payday loans are granted in banks, i.e. intended for any purpose. The borrower then receives funds for any use, for example, he can buy household appliances, go on a trip, organize a party. To obtain a payday loan, we need a proper creditworthiness based on revenue.
On the other hand, non-bank payday loans are granted on looser terms. We can enlist without the need to present documents confirming income and employment, and even without checking at BIK and other debtors’ offices. Currently very popular are – quick payday loans granted by the internet, but we also have to choose a payday loan installment, for example, in Aasa, where repayment is spread over installments up to 24 months.