Poles are not afraid to borrow money, they willingly reach for both bank loans and use the offer of loan companies. Among clients who need a quick cash injection are more and more often young people, just starting their professional career, and at the same time being a generation of the Internet. It is them who most often use the products of online loan companies, especially for installment loans.
In the first half of 2018, 15 349 thousand were registered in BIK. clients of banks, credit unions and loan companies. In the same period of 2017 there were less by 80,000. In the banking sector, the number of borrowers increased by 0.3%, or 43.6 thousand. people. On the other hand, the number of loan companies’ customers increased by 122,000, an increase of 29.3%. Among those who decided to offer loan companies, there were many customers who did not use bank loans at all – in the first half of 2018 there were 115.5 thousand of them, ie 41% more than in the same period of 2017.
Poles are more and more willing to use the services of loan companies, additionally, the installment loan is becoming more and more popular, becoming a large competitor of both short-term payday loans and cash loans – notes the TAKTO Finanse representative. – This popularity of loans in installments results, on the one hand, from the possibility of borrowing a high amount, which allows to finance even large expenses, and on the other – complicated banking procedures can be avoided and repayment made in convenient installments – adds TAKTO Finance specialist.
Customers of loan companies
Before we check how the popularity of installment loans is growing and why this is happening, it is worth taking a short look at non-bank lenders. Their characteristics may partly explain the popularity of online installment loans.
Over half of 131 thousand Loan companies’ customers are young people under 35 years of age, according to the Credit Information Bureau. We have already mentioned above that many of them only use the offer of loan companies. 27% of such clients are aged 25-34, while 24% are people aged 18 to 24. Young consumers up to 43 years old, who use both bank loans and non-bank loans at the same time, are in total 37%. These data clearly show that the offer of loan companies is most often chosen by people who eagerly use the Internet on a daily basis and deal with many things online. Such consumers are not accustomed to queuing at banks and to complicated, lengthy procedures.
Why do Poles choose installment loans?
Non-bank installment loans have recently become popular, and are an alternative not only for payday loans, but also for banking products. A large loan boom for installments has been going on since the fourth quarter of 2017, according to BIK data, and there is no indication that it will end soon. In the first half of 2018 such loans were granted by almost 7% more than in the corresponding period of 2017.
Why do Poles increasingly choose installment loans in loan companies? There are at least several reasons. First of all, such loans allow you to get a much larger sum than payday loans – some lenders are willing to borrow up to 25,000. zł. Another advantage is a very convenient form of repayment of such a commitment. The customer can choose the amount of the installment by setting an appropriate repayment period (even a few years), which does not strain the home budget. An additional advantage of this product is the speed and ease of obtaining cash and minimum formalities. To get an installment loan, all you have to do is go to the loan company’s website, select the amount and the repayment period, then fill out the online simple form and send it to the lender. The entire loan process takes several minutes and the money is transferred to the borrower’s account on the same day.
Poles, especially young people, choose installment loans because they have access to them online and all formalities can be done online. In this way, they raise money quickly and without wasting time in queues that are waiting for them in bank branches.