They allow to obtain financial means to cover expenses. The ponders have, however, some features that are missing in installment loans, and installment loans have specific features that are foreign to short-term loans. More information at ainktm.com
The main purpose of this financial product is to supplement the capital held by the borrower, or to help finance a small expense that has run out of savings. In the Polish realities, due to the increase in the prices of goods and services and the lack of adequate salary increase, many people have problems with financial liquidity, in the event of an unexpected accident, because they find it difficult to set aside their savings.
The name of the minutes comes from the fact that they are given in a very easy, quick way – without unnecessary formalities. The form of personal data necessary to conclude a loan agreement can be completed and sent also via the internet. The monitors are repaid in a short period, which is usually about 1 – 2 months.
Short-term monitors have a consumer character – due to low loan amounts, they rarely allow for investment expenses, such as renovation of a flat or purchase of a car or equipment necessary for running a business.
The installment loan is granted for a long period and has a higher value. In contrast to payday loans, installment loans can have both consumption (for holidays, the purchase of household appliances, etc.) and investment.
Waterpots can be provided for free. These types of promotions are offered by some loan institutions. In the case of long-term loans offered by parabanks, promotions have a completely different form, e.g. credit holidays. However, these features apply only to certain financial products. Not all loan companies offer a promotional first minute for free or long-term loans indicated above.
Summarizing the above considerations, it should be noted that the main difference between payday loans and installment loans is the amount of borrowed capital and the length of the repayment period. In the case of payday loans, the repayment takes place once or in two installments. The situation is different in the case of installment loans, in which a detailed schedule of repayment of monthly installments is attached to the contract. The number of installments can range from a dozen to several dozen, depending on the amount of the installment loan.