In addition to banks, there are para-bank institutions that provide banking-like services . The scope of their services depends on the legislation of the country. Most often, these institutions function as intermediaries between banks and small clients, although we are increasingly meeting various financial institutions with their own capital.
The most important feature of para-bank institutions is the inability to accept deposits, therefore the money borrowed is money of a company or a bank. However, this is not always the case. The so-called “payday loans” can be granted by anyone who has the capital. It is worth remembering to read the content of the concluded contract well, as a slight oversight can result in serious consequences. The activities of para-banking institutions are regulated by the provisions of the Civil Code, therefore they are not subject to the supervision of the Polish Financial Supervision Authority or banking law.
One example of para-bank institutions are companies that grant cash loans, so-called “Quick loans” or “payday loans” . The loan agreement, unlike the loan agreement, first does not have to include a deadline for repayment of funds, and secondly, the amount transferred to the borrower becomes his property (the bank gives money only at its disposal). Financial institutions borrowing their own money do not have to keep mandatory reserves like banks, and the verification of borrowers is not subject to any legal restrictions. Hence the possibility of receiving the amount of 50 thousand. zloty in ten minutes based on an identity card. Everything is nice but …
Of course, the other side of the coin always appears, these loans are subject to very high interest rates and costs often reaching up to 80% of the loan value. Other popular banking institution are … cooperative cash registers. Cooperative funds operate only within their members. Ticket offices usually run non-profit activities focused on collective saving and granting loans. In addition to collecting cash, granting loans and credit unions carry out financial settlements and mediate in the conclusion of contracts.
In conclusion , the important role of banks in the modern life of both an individual person, as well as an enterprise or the state should be emphasized, while changes in the financial markets are moving towards the creation of financial supermarkets, in which customers can meet various needs in one outlet. Institutions offering such services can expect the appearance of economies of scale and associated benefits in the form of reductions in average operating costs. Of course, such concentration entails the danger of concentration of risk in one institution.
One can put forward the thesis that if something like that were real, Poles would massively get out of debt. Unfortunately, loan consolidation is only available for a handful of debtors. The conditions set by the banks are impossible to pass for most. Banks do not necessarily want to have clients in their ranks that they know that they are not paying their debts. Therefore, only persons with good collateral, a fairly flawless BIK and a solid income attractive to the bank can dream of a consolidation loan. And this is really a small percentage. Consolidation of payday loans is practically impossible in most banks, as these loans as described above are granted at a very high percentage, thanks to which no institution will buy back several such liabilities to combine them into one giving one lower installment .
The answer is to use the right specialists in the consolidation of payday loans and loans.
Forum credit counselors come to the rescue. We do not make unnecessary inquiries, we do not charge any initial fees, we carry out step by step.
Our credit advisors have several years of experience in implementing difficult loan applications, which is why we manage to obtain several hundred thousand financing for dozens of people every day.