The amounts available for non-bank loans are usually not very large but their value varies from company to company. An interesting aspect is that many companies also offer small amounts, an option that does not exist for classic banks. Attention, the maximum amount available depends on a number of factors, such as the monthly earnings of the person requesting it. Also, some companies have a maximum cap for the first credit granted, which increases at the second application.
The fast loan concept comes from English, where it is known as payday loan or cash advance . As the name says, in the United States, the term generally refers to an urgent form of credit that is fully reimbursed on the day of receipt of the next salary.
What is a fast loan?
In the Americans, the system works in a very simple way. The customer completes and signs a check on the company’s name, which uses it to withdraw from the account the amount borrowed plus the interest on the salary day. Another commonly used practice there is pre-approval of electronic reimbursement directly from your account. In this case, the creditor receives the money immediately after the customer receives the first transfer.
In Romania, the term has broader coverage and virtually denotes any non-bank credits. They are granted by non-banking financial institutions (IFNs) and have multiple advantages over a classic loan. IFNs operate completely legally and are controlled and regulated by the National Bank of Romania, but the conditions they have to comply with are less stringent than those imposed on banks. For this reason, IFNs can provide much faster and more flexible loans than they have with simplified procedures.
For quick credit , guarantees, salary certificates, or too many other papers are generally unnecessary. Obviously, the risk that the non-banking financial institution assumes is much higher. That’s why taxes or interest rates are higher than in the case of a bank loan, without this feeling too much in the client’s pocket due to small amounts and short repayment periods.
The main features of a fast loan are reduced formalities and easy approval. In many cases, you can apply within a few minutes for an online credit and your money gets instantly in your account.
These types of loans are ideal for those who have unexpected trouble and need urgent money for a short period of time. In case of an unexpected problem or a critical situation you do not have time to go to the bank and wait until your request is analyzed. If you do not have a guarantee or a salary certificate, the banks will refuse you anyway. In this situation, the best and most convenient solution is to ask for a quick loan , which will help you get rid of the trouble.
How much can you get from a quick loan?
Let us briefly review the amounts that can be obtained from several important non-bank financial institutions in Romania:
- Provident – provides credits between 500 and 5000 lei
- Ferratum – amounts from 200 to 1400 RON
- Mozipo – the minimum credit is only 100 Ron, the maximum is 1500 RON
- Onnen – a good alternative when you need more money. The minimum amount is 1000 RON but the maximum ceiling can reach up to 10000 RON.
- Viva Credit – useful for small amounts, between 100-1000 RON.
- Tele Credit – you can get from 100 to 2000 lei.
- Happy Credit – at least 400 and up to 4000 lei, but also offers larger amounts if needed.
- Credit Fix – another firm with a minimum threshold of just $ 100 (max 1500 RON).
- Extra Simple – offers between 200 and 2000 lei.
- Zaplo – minimum 150 RON, maximum 1500 RON.
What are the advantages of a fast credit ?
- You get the money very quickly. There are sites where you can get credits online only with the bulletin. Most of the time, the money reaches you within 24 hours, but in some cases only takes a few hours. Ideal in urgent cases.
- Simple procedures. Generally, the approval process does not take more than a day. Some non-bank financial institutions even notify you if you received your credit.
- No papers. Do you have a valid bulletin and proof of income? It’s all you need for a quick loan, the wage certificate is not necessary.
- Small amounts, fast reimbursement. You can get a fast fixed credit for the amount and period you want without having to pay interest for a long time. Additionally, early repayment is also accepted.
- There are no warranties or guarantees. You can stay quiet, you will not be homeless in the unfortunate case where you can not pay in time.
- It’s your business what you do with money. The non-bank financial institution does not ask for explanations, you can use the money from a quick loan for whatever purpose you want.
- It is very convenient. In general, there is no need to move around and you can complete the whole procedure from home.
- It’s confidential. The institution does not disclose data about you and no one finds you have financial problems or you have requested a credit.
- Your financial history does not matter. You will get a quick credit even if you have other loans or debts. Some non-banking financial institutions will also give you money if you appear in the Credit Bureau database. This is especially great when you need money to cover urgently the maturity of another credit.
- Flexible terms. From 100 to 10000 RON, from one day to one year. Your choice belongs to you.
- Clear conditions. The interest is fixed and you find it from the beginning, without any other hidden costs or commissions. Although interest may seem great, remember that its percentage is calculated over a full year. As your credit is for a much shorter period, you will not pay too much.
- Do not waste time. Why go to a bank, fill in unnecessary forms and answer all sorts of questions?
Terms and reimbursement date
The terms differ from one company to another, but non-bank financial institutions display it very clearly in order not to allow further complaints. Most businesses have a virtual calculator on the site, where you enter the amount and time you want, and you find all the costs, such as annual interest, the total amount to be repaid, or the monthly rate (if you choose this option).
The reimbursement period for non-bank loans is selected by yourself, depending on your personal needs. Let’s see what are the minimum and maximum limits for a few companies:
- Provident: from 12 weeks
- Ferratum: Fixed period of 62 days
- Mozipo: between 2 and 6 months
- Onnen: minimum 3 months and maximum 24 months
- Viva Credit: Ideal for short periods of 1-35 days
- Tele Credit: between 10 and 30 days
- Happy Credit: longer periods, between 6-48 months
- Fixed Credit: Online loans with a refund between 5 and 45 days
- Extra Easy: non-bank credits, with duration of 5-30 days
- Zaplo: from 5 to 30 days
The conditions you have to meet for a quick credit
The space of this article does not allow us to get into too much detail, the terms of a fast loan differ from one firm to another. The longer the amount and time you want, the more complicated the conditions. However, there are some general conditions imposed by all non-banking financial institutions.
First of all, you need a valid ID. Generally, this means an ID or an old ID. Few companies are accepting other options. If you only have a temporary identity card or a passport, the chances of getting a loan on their basis are lower.
Age is also a criterion. In order to obtain a non-bank credit, it is mandatory to have the minimum age of 18 fulfilled. Some companies, however, require a lower minimum age, which may reach 21 or even 24 years. Some companies also require a maximum age of 75 years. In some cases, it may be higher or it is even possible that there is no maximum age limit.
Another mandatory condition is to be able to prove that you have a stable monthly income. In the case of a classic bank, that means getting a salary certificate. Non-bank financial institutions are much more flexible, they just want to make sure you get some money to get your credit back, it’s not mandatory to have a permanent job. Stable income can usually be demonstrated through an account statement that shows monthly cash inflows. The money source is not important, it can be pension, salary, rent, interest and dividends, money from children or just about anything else.
Depending on the amount requested, there is also a minimum monthly income to be proven. As a rule, the minimum ceiling revolves around 300 lei but varies from company to company.
How to apply for a quick loan?
The first thing you have to do is study the market well. Both the amounts available through online credits and their conditions are very diverse. There is no firm to be the best in this area, some are specialized in non-bank loans for short or long periods, others have more flexible lending conditions in exchange for higher interest rates. The market offer is very generous, choosing the solution that best suits your needs.
At present there is strong competition between fast-paced companies in Romania. You can take advantage of this to get very favorable conditions. Some non-bank financial institutions even give interest-free loans for the first contract with a new client in an attempt to reassure clients. Look for these promotional offers and use them if they fit your requirements.
Read carefully the terms and conditions of the loan. You can find them on the companies’ website and are usually very clear, but you have to make sure you have gone through them carefully. Many companies offer an online credit card, use it. If you do not have access to an office computer, most sites are also available today in tablet or mobile phone versions. Also consult the opinions of other clients who have already contacted the institution.
If you are the kind of person who wants to know all the details, read the applicable laws and the rights you have according to the regulations in force. You find links to these, or even their names, on the pages of non-banking financial institutions.
Weigh well the costs involved and the revenue you have. Calculate exactly the amount you need and your ability to return on time, you can also choose to pay in installments if needed. If you delay your payment, you will have to pay a higher amount.
Once you have chosen, make sure that you meet the necessary conditions and that you have the required documents at your fingertips. Fast loan can be obtained very simply, choose one of the methods that the company offers. The most convenient option is online but you can complete the procedure by phone or faxing. Of course, you also have the option to move to the headquarters of the non-bank financial institution or to arrange a meeting with one of their sales agents.
How can you use a quick loan?
In short, you can use it for any purpose you want. Unlike a normal credit, for a quick credit it is not necessary to specify the money destination and the IFN will not ask you anything about it.
As a rule, people resort to this type of loan to resolve an urgent problem such as medical expenses, accidents, unforeseen repairs, fines or the like. But you can use your money and take advantage of an opportunity like a good investment or buying a product at a promotional price. Nobody prevents you from spending it for other purposes, such as a holiday, a gift for a dear person or even refinancing another matured credit.