Non-bank loans in Latvia – what is it and for whom?

Non-bank loans have gained great popularity in recent years. And while they are traditionally associated with short-term credit, in reality, non-bank lending now means much more. This range of services also includes solutions such as:

  • Consumer credit;
  • Credit line;
  • Car loans;
  • Corporate loans, etc.

The main difference between banks and non-bank lenders is that non-bank lenders are mainly limited to providing credit services, whereas banks are only one of the areas of activity.

Another major difference is that non-bank lenders often offer simplified borrowing conditions, so the credit process itself is relatively quick. This is useful in situations where money is urgently needed. In most cases, you can apply for a loan by filling out an online application. Once the credit has been approved, the money will be transferred to the designated bank account. How fast the loan will be processed depends on the lender’s terms, the type of loan, the formalities required, etc. For example, a short-term loan, a credit line and a consumer loan can be obtained in minutes.

What are non-bank loans used for?

What are non-bank loans used for?

Just like bank loans, non-bank loans are useful in a variety of situations – for example, a short-term loan may come in handy when you are short of pay or have to pay an urgent bill. Conversely, solutions such as consumer credit or credit line can be used to implement larger plans. Regardless of the purpose, formalizing a loan must always be a wise decision.

Comparing lenders

Given the wide variety of non-bank lenders currently available in Latvia, several options should be compared and evaluated before applying for a loan.

Like banks, non-bank lenders must be officially registered. Lending also requires a special license. It is a guarantee that the lender works in accordance with Latvian law, is safe and reliable. However, this is not the only aspect to judge a lender.

Range of offers

First off, consider whether the particular lender offers the loan you need, what the borrowing and repayment terms are.

Working hours of the lender

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Given that non-bank loans are often needed to cover unplanned and urgent expenses, the timing of their execution is crucial. It should also be remembered that the loan application can be completed at any time of the day, but it is processed within the lender’s working hours. For these reasons, you should pay attention to the lender’s working hours to make sure you get the loan when you need it most.

Reviews of other borrowers

The feedback of other borrowers will also help not to be confused by the wide range of offers. As you know, real experience can tell you a lot more than loud ads.

Just as important as comparing lenders is to evaluate your credit need and your solvency.

Fezziwig offer

Fezziwig, a non-bank lender, offers both short-term and long-term loans, taking into account the different needs of its customers:

  • Short term loans must be repaid within 30 days. You can get up to € 425 for your first borrowing. In addition, the company ‘s new customers are granted an interest – free loan – so you only have to repay the loan after the due date. When applying for a new loan, the maximum loan amount is EUR 500;
  • A long-term loan allows you to borrow up to 1000 euros and make repayments within 3 to 12 months. A long-term loan is useful if you want to make bigger plans, but don’t have time to wait until you have the money you need

In order to obtain a loan from Fezziwig, neither a pledge nor a guarantee is required. The application can be completed online within minutes. It will be considered within the lender’s working hours (weekdays: 8am – 10pm, weekends: 10am – 8pm).

How to apply for a loan?

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Before applying for a loan, make sure the terms of the agreement are understandable and evaluate your compliance with the terms of the loan. Fezziwig loans are available to residents of the Republic of Latvia between the ages of 20 and 70. It is also important that the borrower has a regular income and a positive credit history.

If you are confident in your options:

  • Fill out the loan application;
  • Confirm the registration by transferring one euro cent to the bank account indicated by the lender;
  • Waiting for confirmation. In case of a positive decision, you will receive money in your bank account very soon and you can spend it at your own discretion

When borrowing again, all you have to do is log in to the user profile you created at registration and provide the required information. It is also possible to find out all about current credit obligations and special offers.

How to borrow responsibly?

How to borrow responsibly?

Although non-bank loans are relatively simple and quick to process, they are, like other credit liabilities, a responsible decision. Before borrowing, be sure to evaluate both the need for the loan and your ability to repay it within the contractual timeframe:

  • Do not borrow more than necessary;
  • Evaluate not only your income but also the amount of other expenses – only this will allow you to objectively determine your solvency

Credit is a responsibility. Borrow wisely and use wisely!

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