Do you want to take a quick and cheap loan? Using the services of non-bank lenders, you can receive money at an express pace, and in addition … absolutely free. Let’s check where to look for the cheapest payday loans.
Although non-bank loans have expensive opinions, these are just appearances. Indeed, just a few years ago, before the amendment to the anti-usury law was implemented, the payday market resembled real Eldorado.
The lenders themselves regulated the amount of loan-related fees, costs of reminders and extension of the repayment period. It has often turned out that debt collection fees exceed the amount of the commitment. Fortunately, such realities are now a thing of the past.
Current costs of non-bank loans
The new legal provisions, implemented in March 2016, imposed on lenders maximum limits on the costs associated with borrowing money. At present, non-interest costs of taking a payday loan may not be higher than 25% of the amount borrowed and 30% of that amount per annum. The amount of interest remained unchanged and amounts to 4 times the NBP lombard rate, i.e. 10%. per year.
How do cost limits translate into specific amounts?
The maximum loan-related fees depending on the amount of financing and the repayment period are as follows:
- loan of $ 500 for 30 days – $ 141.44;
- loan of $ 500 for 60 days – $ 174.32;
- loan of $ 800 for 30 days – $ 226.3;
- loan of $ 800 for 60 days – $ 252.6;
- loan of $ 1,000 for 30 days – $ 282.88;
- loan of $ 1,000 for 60 days – $ 315.75;
- loan of $ 2,000 for 30 days – $ 565.76;
- loan of $ 2,000 for 60 days – $ 697.26.
If the lender exceeds the legal limits, the borrower will be entitled to an interest-free debt refund. Failure to comply with the rules can therefore be painful for lenders, and thus completely unprofitable.
Thanks to the new law, costly prompts have gone to the past. When you borrow money, you no longer have to worry that late repayment will ruin your budget. The only cost of late repayment that the lender may charge is 14 percent interest per annum.
Free payday loans are doing well
Although many experts ruled that the new anti-usury act would put an end to free payday loans, such hypotheses remained only a theory. Free payday loans for new customers are still on the market. In addition, they are doing really well. We can now find such loans in dozens of companies. Is it worth reaching for them? Is getting a free loan really a guarantee of low costs?
Free loans are products dedicated to new clients who have never used the services of a given lender before. By reaching for such financing you will not pay not only interest, but also commissions, insurance and any other loan-related fees.
The only condition of non-payment is repayment of the loan on time. If you are late with your refund, the lender will have the right to cancel the promotional payday loan terms and charge you the standard loan amount
Cheap loans in installments
Although installment loan companies do not offer free financing, getting a “installment” will often be a far better option. By spreading repayment into installments, you will significantly minimize the risk of late repayment, protecting the contents of your wallet.
Where to look for cheap installment loans?
Installment loan costs can vary considerably depending on the particular lender. Before you reach for a bailout, be sure to compare the borrowing costs in individual companies.
To illustrate the amount of differences in prices, we will compare the installment-related costs of a $ 2,000 installment with a payment spread over six monthly installments.
If you take out a loan in Astro Finance, the monthly installment will be $ 407. The amount of the loan-related fees will be 438 $, and the total amount to be repaid – 2438 $.
If you borrow $ 2,000 in Credither and spread the payment over 6 months, the cost of the loan will be 858, 72 $, the total amount to be paid – 2858.72 $, and the monthly installment – 476.47 $.
The cost of a loan of $ 2,000 with a six-month payment period is currently only … $ 90. The monthly installment will be $ 348.34 and the total amount to be repaid is $ 2090.
If you reach for an installment loan from Good Finance, the total cost of borrowing money will be $ 856.25. The monthly installment will amount to $ 476.04 and the total amount to be repaid – $ 2856.25.
When deciding on a loan in Happymoney, the monthly installment will be $ 353.34. The cost of the loan will be only $ 120, and the total amount to be repaid – $ 2,120.00.
At first glance you can see that the difference in the total financing cost between the most expensive (Credither) and the cheapest loan is almost $ 800!
The key to buying a cheap installment will therefore be a fair comparison of offers available on the market.
Cheap loan – what to keep in mind?
No matter how cheap a loan you get, be sure to analyze your financial options first. Borrow only as much as you can pay back. Even a few days delay may result in additional fees.
Prolonged may lead to the initiation of the debt recovery procedure and referral of the case to court and enforcement proceedings. As you can guess, you will have to cover their costs from your own pocket.