The short-term loans market has not attracted the interest of bankers for a long time. The banks were focused on granting loans for higher amounts and a longer repayment period. In addition, they rigidly adhered to the creditworthiness assessment standards of potential customers. The loan granting process was also much longer than in the case of companies offering quick loans.
Recently, however, banks started to look more closely at quick loans granted for lower amounts, the more so that according to the Credit Information Bureau, as many as 80% of people with debts in loan companies pay off their debts at the bank. Banks know, therefore, which customers are looking for loans for a short period of time and can use this knowledge – for the benefit of themselves. Boldly implement offers that look decisively similar to popular payday loans, but on slightly better terms.
First bank breaks
For the first time, the proposal for a quick bank loan appeared on the market in 2014 in the Bank Smart offer (currently Nest Bank). It was a loan for a month granted via the Internet. Unfortunately, it did not meet with too much interest from customers and after a few months it disappeared from the bank’s offer. However, the idea of granting loans for lower amounts, with a shorter repayment time, was taken over by other banks, and its variants appear systematically in many bank offers. For example, Credit Agricole and Getin Bank offer a loan for PLN 0 at no additional cost, and Bank Millennium for clients with a credit limit in ROR liquidated interest for the first 7 days of debit. The ability to obtain credit has also improved. Eurobank implements its “Instant Loan” within 15 minutes!
“Debet for 15 days”
The new financial product of ING Bank Śląski is very close to payday loans, “Salary on already”, introduced at the end of May 2018. However, the bank made sure that the offer was not negatively associated, as some quick loans. The offer advertised as a “one-time debit for 15 days” is based on the following principles:
- money is made available on a personal account – for greater convenience, the application can also be submitted online
- the available amount is in the range from PLN 550 to PLN 3,500
- the repayment period is up to 15 days, and each receipt on the account is treated as a debt repayment
- the interest rate is equal to 0%, but a commission of PLN 40 is charged for granting the loan
Compared to the offers of companies operating on the Polish market that offer quick loans, the “Salary at already” of ING Bank Śląski is interesting. When borrowing money for such a term in a loan company, you have to take into account costs ranging from PLN 75 to PLN 130 (not taking into account the first loan, which, according to the new marketing trend, is increasingly provided by loan companies for free).
When deciding on a loan at ING Bank Śląski, it is worth remembering that the cost of the loan is fixed, irrespective of the amount, and therefore with smaller amounts, in the event of exceeding the 15-day repayment period , we will pay relatively more for financing than in the case of larger amounts. APRC for PLN 3,500 is approximately 31%, and for the amount of PLN 500, up to 550%.
A new trend in banking
The “salary on already” of ING Bank Śląski can be treated as a kind of test for bankers. If it arouses the expected interest of customers, banks will certainly introduce new and fast loans offerings, creating serious competition for companies dealing with payday loans.