The short-term loan industry is developing intensively, while undergoing many qualitative as well as legal changes. In the article you will learn the main factors that have changed the market of smaller cash loans in recent years in Poland.
Finally there is a greater fight against usury practices on the loan market
Society strongly stigmatized usury loans, especially against mortgages. Some people were paid extra money, usually small, provided that they entered the loan agreement with collateral in the form of real estate, the largest life asset. Such agreements were often terminated especially after minor misunderstandings, and loan institutions ordered the transfer of real estate. Most of the similar practices have been publicized, and the Polish Financial Supervision Authority has also dealt with the issue to a large extent, and work is currently underway on projects that will virtually eliminate usury practices from the economy.
Short-term loans on the internet are a great help for the client
The development of internet technologies was of great importance for the optimization of the short-term loan market. You can take short-term loans through dedicated websites at much lower rates. Some loan companies do not have to maintain expensive stationary branches, and this guarantees better conditions for cooperation with retail clients. Short-term loans are monitored by the Polish Financial Supervision Authority. Just a look at the popular list of warnings to learn about the risk of establishing cooperation with a particular loan brand. Pursuant to legal regulations, parabanks and retail banks must provide customers with information on the total cost of the liability. As a result, the cash loan comparison market has grown significantly. This is very good information, because the customer has gained greater awareness of the credit offer, has the tools to fight dishonest lenders, and reaches for money much faster, mainly thanks to the websites of loan companies.
Other elements of the short-term loan market development
In the industry, you deal with numerous financial intermediaries, partner programs for the promotion of cash loans, with payday loans linked to large promotions, e.g. the first repayment for PLN 0. Market competition, access to credit knowledge and borrower protection measures are important elements in the evolution of the short-term loan sector. How do you rate these factors regarding cash loans?