According to ABC data, online loans recorded another increase. Loan companies enjoy trust among Poles, as evidenced by the increasing use of non-bank sources of financing. However, installment loans are among them. What is the structure of the financial support provided? Where can we get money on attractive terms? Let’s see!
ABC online loans
The Credit Information Bureau collects information not only in the banking sector, but also in loan companies. The list of lenders cooperating with the institution is still growing, which allows for a more detailed analysis of the market. As a result, specialist publications informing us about changes, trends and the debt structure of non-bank customers appear more and more often.
According to the latest report by BC, in the third quarter of 2018, there were as many as 33,000 unreliable debtors whose arrears exceeded $ 2.4 billion. The chart includes a graph showing the share of specific amounts of arrears. It turns out that most people have debt in the range from 2001 to 10,001 + $. Will the information on non-bank loans only confirm this data?
Did you know … Only 23.4% of loan company clients do not have a bank loan at the same time. Only 1.4% of people have only one active non-bank liability.
Continuous increase in online loan sales
On January 8, 2019, the ABC online loan statement on sales dynamics was published from January to September. A big surprise for many people may be the fact that payday loans for lower amounts were not in the first place, and much higher liabilities amounting to over $ 5,000. Before we get into the detailed data, it is worth paying attention to the continuous development of the non-banking sector.
In the first three quarters of 2018, both banks and loan companies recorded an increase in sales. In the final analysis, however, it is the lenders who make the jump by as much as 47%, which looks impressive compared to 7% of the banks. The total amount of loans granted is $ 5.3 billion. What is the structure of sales of non-bank products?
Non-bank loans via the Internet – sales structure
According to ABC online loans, the largest increase in sales was recorded for loans exceeding $ 5,000. They were characterized by dynamics of as much as 118.2%, leaving the other values far behind. The financial support in the second place for amounts from 3,000 to 5,000 $ achieved dynamics at the level of 19,4%.
For many of us, the big surprise may be the fact that the lowest growth was recorded in products in the range from 1,000 to 1,500 $. Other values typical for payday loans, such as $ 500 or $ 2,000, also did not record high sales dynamics, remaining in the ranking in the lowest positions. How it’s possible?
Installment loans are becoming more and more popular
In the opinion of many of us, the flagship product of loan companies is payday loans for a month or two. They are characterized by low amounts of funding, which may not have a downward trend, but their increase also leaves much to be desired. This is all the more surprising because most often it is from 100 to 2 000 $ that promotional promotional loans are based. What could be the reason for this situation?
The financial situation of many households has improved compared to recent years. The increase in the minimum wage in 2018 to $ 2,100 gross, a higher national average of over $ 4,500 gross, benefit 500+ – all this could also have contributed to more frequent incurring liabilities for higher amounts.
Earning more, we can afford to pay back higher loans and borrowings freely. If we take into account the fact that waiting for a decision on granting financial support by the bank may last indefinitely, and loan companies guarantee their release on the same day, we should not be surprised by the tendency towards non-bank products. Taking out a loan in installments guarantees that we can plan our home budget and adapt it to the need for monthly payments to the lender’s account. In addition, when applying, we choose the amount and date ourselves, which allows us to adjust the installment amount to your current financial situation. There is also no doubt that the amounts in the payday loans offerings are insufficient to pay for a larger project, for example, renovation or buying a car. In turn, installment loans above $ 5,000 are a real alternative to loans and allow you to cover large expenses without problems.
Loan companies offer their clients both short- and long-term liabilities. However, according to ABC data, we are increasingly deciding to use an installment loan. To enable our readers quick access to attractive offers, we place a table below. If we are interested in one of the products, click “Submit Application”.
In this way, we will be taken directly to the lender’s website. It may happen that the information contained in the statement will be insufficient. In this situation, we also recommend looking at the loan opinions prepared by our specialists.