Home service loanOn July 24, 2019 by Debra Villegas
Advantages of home loans
On the plus side, home-based loans definitely need to be convenient – we handle all formalities in the comfort of our own four corners in the presence of an employee of a given non-bank company. This frees us from bothering to a stationary facility, standing in a queue or even filling out an application on our own. Usually the representative asks us for an ID card and enters the relevant data into the form on its basis. If you need to complete data such as the source and amount of income, simply provide a statement of earnings. Our task is usually limited to providing the required amount, repayment period, reading the contract and signing on the last page of the document. The advantage of a loan company employee coming to your place of residence is also that if during the analysis of the offer and the provisions of the contract questions or doubts arise, they can be quickly dispelled by direct conversation.
Adjusting the date of the visit
On the benefit side, it should also be noted that we can adjust the date of the visit to our own day plan, which means that entering into a commitment does not interfere with other activities. Another factor that suggests that you should opt for a home loan is the repayment method. Every week or month for the next installment a representative of the lender comes in person. Such a solution can affect us mobilizing and help us pay your debts on time.
Disadvantages of loans with home service
This last feature also has its drawbacks. We must be at home at the appointed time and carry the deducted amount in cash. However, the biggest disadvantage of borrowing with servicing in the place of residence are the high costs of such a commitment – sometimes their value may be equal to the amount of the loan we have obtained. To confirm this thesis, we looked at two large lenders from the Polish non-banking market who offer a standard sales channel – they are Provident and Eurocent.
Provident – 15 years of experience
In the case of the first company that has been providing installment loans to Poles for over 15 years, you can apply for an amount of PLN 300 to 10,000. Repayment is possible in weekly (30, 45, 60, 75 and 90 weeks) or monthly (3-12 months) options. Taking 5,000 PLN for 60 weeks and with the return version by means of a transfer, the installment will be 112.66 PLN, and the total cost of the loan is 6 759.16 PLN. For comparison, with the same parameters, but when choosing the option with home service, we will pay PLN 159.59 every week, which will give us a total of PLN 9,574.95. The cost difference is significant.
Eurocent – installment loans up to PLN 2,000
Eurocent grants installment loans for an amount between PLN 100 and 2,000, and their repayment is spread over weeks – minimum 34 and maximum 52 weeks. In the Standard Package (payment of funds and repayment of receivables are carried out by means of a transfer), taking the highest amount available with the longest repayment period will result in giving the company PLN 2,239.34 (installment is PLN 43.06). However, when borrowing PLN 2,000 for 52 weeks in the Comfort Package (full service at home and the care of a representative), we must prepare for the fact that we will give back PLN 4,198, i.e. the costs will exceed the value of the commitment.