Bank Payday Loans vs Non Bank Private Loans, Which is More Profitable?

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Need a loan but don’t want to apply for a bank loan because it was rejected? Calm down, there are still non-bank Payday Loans you can count on. Find out the difference between these two and non-bank Payday Loan providers here!

Applying for a loan seems like it has a lot to do with the fact that the public must have experienced times when there was a personal financial crisis or a lack of funds, whether it was to support everyday life or for emergencies which were of a very urgent nature.

The first step is to take a look at the contents

The first step is to take a look at the contents

Of the savings and assets they have. But if the savings and asset funds are gone, then we don’t want to be forced to lend.

The place to go for a loan can vary from friend to friend, coworker, neighbor, office, to bank. The latter option is often made because people are very familiar with what is called a personal bank loan. But that doesn’t mean your application can be accepted right away. If a Payday Loan is rejected, what should you do?

The fastest lending provider in Indonesia is not just a bank. There are still many non-bank Payday Loan providers you can reach. But before you know some non-bank Payday Loan options. It’s a good idea to notice the difference first.

Bank Payday Loans vs Non-Bank Payday Loans

Bank Personal Loans vs Non-Bank Personal Loans

After studying both of them, Good Finance discovered some differences from bank Payday Loans to non-bank Payday Loans:

  • Nominal Loan Plans

The first difference is in terms of nominal online loan plans. For personal bank loans, the loan amount can reach hundreds of millions of dollars. Some banks can even lend up to $ 1 billion. This is different from a non-bank Payday Loan plan for only tens of millions.

But unfortunately, the bank’s Payday Loan minimum is pegged at least $ 5 million so those of you who want to borrow between $ 1 million – $ 4 million cannot lend. Other than non-bank Payday Loans with a minimum loan cap of at least $ 500 – $ 1 million.

  • Installment Period

The minimum and maximum stipulation of the bank loan and non-Payday Loan lending period is actually affected by the nominal lending. On bank Payday Loans, the minimum period is 12 months and the maximum is 60 months. Whereas for non-bank Payday Loans the minimum term is 7 days and up to 6 months or 12 months.

  • Specified Flowers

Compared to the fixed interest rate, both have very high-interest rates due to the lack of collateral as a condition of the loan so the provider does not want to set a high-interest rate. But in terms of the interest rate system, both are different because most personal bank loans provide floating rate systems while non-bank Payday Loans typically provide fixed rates.

  • Submission and Dilution Process

For the application process, both are online and offline. It’s best to apply online because it’s easier and easier to do from anywhere and anytime. Plus when you apply online, the disbursement process is faster because the data you enter is digital so you can process it right away.

Four Non-Bank Payday Loan Providers

Four Non-Bank Personal Loan Providers

Knowing what the difference is, Good Finance has provided four recommendations for non-bank Payday Loan providers, namely:

  • Cooperative

The next most popular non-bank personal lender is cooperative lending. Cooperatives are non-bank financial institutions that can provide you with non-bank Payday Loans. But in order to get a loan from a cooperative, you must first become a member of the cooperative. The nominal loan amount varies depending on the size of the cooperative since the loan lent comes from the cooperative fund obtained from the members’ dues. If you are already a member of a cooperative, applying for a non-bank Payday Loan is not difficult as the requirements are simply ID, payslip, and electricity or telephone bills.

  • Venture Capital

For the next type of non-bank Payday Loan, there is a venture capital dedicated to business needs, both for capital and business development. Venture capital is provided by a venture capital firm that will invest capital into your business and will eventually be required to pay the funds you have provided along with the previously agreed-upon profit margin. The amount given can be hundreds of millions of dollars.

  • Pawnshop

Next is a Pawnshop that is the choice of a non-bank Payday Loan provider with collateral or guarantee. So in the future, you will need to prepare a guarantee before you can get a loan. The warranty given can be ECPB (Motor Vehicle Ownership Book), a home-to-land certificate. A loan can range from $ 50 to $ 10 million.


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