When you are looking around for a loan then usually you will have two major option to choose from and they are either getting a loan at your local Bank or getting that money from a non-banking lender. Both options have their advantages and disadvantages and for some people banks are still the first place where they go to get a loan but for others those new private financial institutions are a better choice. Usually it all depends on your needs and wants but in general you can get your loan more easily from a non-bank lender but at the bank you will generally have a smaller interest rate. But of course there can also be some non bank financial institutions that offer lower interest rates as well as some banks where you can get your money faster then from those private lenders.
Banks
banks are still the primary financial institutions that we use to get our money and some of these institutions have been around for more than a century and that just shows how trust-wordy they are. Banks usually have almost endless money reserves that they can lend out as well as millions of customers that deposit their money and earn a small interest from their investments. Banks in most cases offer various pension investment plans and allow their clients to invest money as well as get various loans.
Bank Loan Offers
Banks give out various credit offers starting from small scale loans like consumer credit and credit cards to large multi-year loans that are made for buying a car or a house. Usually interest rates on all these banking loans are much lower but you will need to fill out much more paperwork in order to get your loan application approved. Bank loans are intended for larger purchases and expenditures and that is why they offer various student loan, car loan as well as mortgage options.
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Non-banks lenders
Non bank lenders are a relative newcomers on the market and they usually are smaller companies that have been created primarily to do one thing and one thing only and that is why they are able to compete with banks in their own playing field. Non bank lenders usually get large investments from private individuals to kickstart their business and because of the larger interest rates they can quickly expand that capital and lend out more and more money.
Non-bank Loan Offers
Non bank lenders in most cases offer small scale loans that do not need any collateral or a guarantor and can be received in a matter of minutes. These offers include online loans, a line of credit as well as consumer credit and car loan options. Usually all these loans have higher yearly interest rates but because they are usually repaid in a matter of months not years the total interest that is payed on a loan is much smaller if we compare them to some long term bank offers.
Now that you know what type of loans are available from banks and from non-bank lenders you can choose the one that you will feel most comfortable with.
