A loan from a non-bank institution can be obtained not only by a person earning income from an employment contract, retirement or disability pension. There are also lenders on the market, providing loans to students.
For them – due to low or undocumented income – a non-bank loan is often the only source of external financing. In the article, we will check where to look for student loans. We will also tell you what requirements they should meet to receive additional funds.
Students constitute a specific group of clients for banks
Due to the lack of income or low, undocumented receipts, the youngest customers are not a “tasty morsel” for them. A person who earns little and counts every dollar will not reach for a loan for several or several thousand dollars.
When in a few years today’s student will become a well-paid freelancer, company owner or employee of the corporation, his value in the eyes of financial institutions will increase significantly. And these will be much more willing to give them credit or credit cards. Until then, the youngest clients have to deal in a different way.
An alternative to a bank loan
Many students benefit from the financial support of their loved ones. There is no doubt, however, that not all parents are able to finance the education of their children. Renting a room in a big city, buying a public transport ticket, teaching aids and food cost not less than 2000-2500 USD per month.
For many Polish families, this amount is the lion’s share of the household budget. In the case of unplanned expenses, especially those that cannot wait many students reach for a non-bank loan.
Short-term payment for students
Online Payday loans are financial products offered by non-bank financial institutions. Their maximum amount usually does not exceed several thousand dollars, and the repayment period is relatively short – depending on the company it is 30, 45, 60 or 61 days. To apply for a quick loan, all you need is a computer (smartphone or tablet) with internet access, ID card, own bank account and an active mobile number.
Most loan companies do not require additional documents – statements about the amount and source of income, or bank statements. They make the decision solely on the basis of the data contained in the loan application. And it will take no more than a few minutes to complete.
A huge plus of non-bank loans is the opportunity to receive money even in 15 minutes. Such information will please especially those students who have faced really urgent expenses. The need to finance a private medical visit, purchase expensive train or plane tickets, or pay tuition fees.
Free student loan
Another argument for choosing a specific company is the cost of borrowing money. Not everyone knows that there are several dozen websites currently operating on the market, providing completely free loans. By using their services you will be required to pay the lender exactly the amount you borrowed. You will not pay not only interest, but also commissions, insurance, preparation fees, and any other additional fees. APRC, i.e. the actual annual interest rate for such a loan is 0%.
Many potential customers are skeptical about free financing, seeing the catch and hidden costs. The only condition of non-payment is the timely repayment of the loan.
If you return your money on time, you can be sure that the lender will not charge you an additional fee. If you are late with repayment by even one day, the lender will have the right to cancel the promotional conditions of the offer and charge you with standard fees.
Where to look for free loans for students?
All the companies listed above are currently providing loans for USD 0. If you are sure that within 30, 45, 60 or 61 days you will generate all the amount needed for repayment, there is nothing to prevent you from reaching for the payday for USD 0.
Or maybe in installments?
Considering the fact that the student budget is usually very tight, it may be worth considering a non-bank payday loan in installments. Spreading the repayment into installments, you will adjust their amount to your own financial capabilities and minimize the risk of delays. For many people, it will be much less effort to make monthly payments of 50 USD than to generate 1000 USD once.
Most companies that provide installment loans do not require employment and income certificates. Unfortunately, such institutions do not offer free loans. Reaching for a popular lifeguard, you will have to reckon with the need to cover fees in a standard amount.
Think before you borrow
The consequences of not paying back the loan on time, especially for a person on the verge of adulthood, can be very severe. If you do not return the money on time, the lender will have the right to charge you with interest and to start the debt collection procedure. The protracted delay may result in the case being referred to an external entity specializing in enforcing the claim or referring it to court and enforcement proceedings. However, this is not all.
If the lender cooperates with BIK, he will provide the institution with information about late payment. These, in turn, will worsen your credit history and make it difficult to take another loan or loan. For a young person who is just starting independent adult life, this can be a source of considerable inconvenience and problems.