Differences between bank and non-bank loans

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In today’s developed world, the bank is not the only “player” in the financial market.

There are other institutions that offer similar services like the bank, although they are not in such a large volume. Non-bank financial institutions can serve a specific branch of the economy, invest in projects or lend to customers. These opportunities make them an important player in the state’s monetary and credit system.

If we decide to take credit from a bank, we need to be prepared to spend a lot of time exploring. The terms of lending in the various banks are significantly different from one another.

Bank credits can be divided into two categories – target and non-target loans.

Targets include the borrowing of cash from the banking institution to be directed to the acquisition of a particular good or service. Interest on the return of the target loan is relatively low.


Typically, a customer receives a target credit for one of the following reasons – buying a car or an apartment, repairing the home, completing training. Banks offer targeted credits for these specific purchases and services and carefully monitor whether the money will actually be spent as intended. The customer is required to collect obligatory documents to prove the intended use of the bank credit.

For example, if you decide to get a loan to buy a car, the bank will oblige you to sign a CASCO insurance contract. In the case of a bank loan for repayment of a mortgage in the contract it will be indicated that the acquired dwelling is a pledge on the loan.

If you take a non-target loan, the bank will not be interested in how you plan to spend your money. But for this “convenience” you will have to pay a more expensive repayment rate than the target loan. When a client applies for a non-target credit, he will need to undergo a thorough bank verification. The amount he can borrow from the bank as non-target credit is limited.

Loans for unemployed, students or people without formal employment, where and how?

But where can the unemployed, students or people without formal employment get credit? It turns out that they can not expect help from the bank. Their potential remains to turn to the non-bank lending market where they will not be overlooked because they are currently out of work or finishing their studies.

The fact is that in most cases non-banking financial institutions pay more attention to their clients and treat them more loyally than banks. With great popularity among users, companies operating in the so-called Loan-to-Pay segment – Small loans in short terms or as known to our clients’ Cash on a Day basis.

The undisputed leader in Bulgaria in this area is the financial organization Cash Loan. It offers its customers lightning micro credits of up to BGN 2,000 , and the user receives a credit approval within 6 minutes of the request. The credit application can be made online or in one of the 70 Kesh Credit offices in Bulgaria. The only document you need is an ID card.

In Cash Credit every client can receive professional and quality service. The approval of credit within 6 minutes is the fastest approval currently offered on the Bulgarian loan market.