Short and Long-term Loans – Pros and Cons

Currently, we can use a variety of loans both at banks and loan companies. We have at our disposal these short-term, so-called payday loans, as well as long-term loans for longer periods. Each of these offers has its pros and cons. What is worth knowing about them?

In the search for additional money, we should first of all determine what amount we will need. Currently, we can finance both your smaller and larger expenses – from buying a TV set to a flat. The key is to choose the right offer that will meet our expectations and, of course, it will not be too expensive.

For short-term and long-term loans, we can go to both banks and non-banking companies. What’s more, the formalities can also be done online, without having to leave the house, which is a great convenience. However, not always a short or long term loan can be used interchangeably – sometimes it is better to decide on a specific one. What to choose? We invite you to check our advice!

Short-term loans:

• quick and easy to take

• we can receive them 100% online

• minimum formalities

• amounts usually from 1,000 to 3,000 PLN

• repayment period from 14 days to 3 months

• best when we need quick cash

It is best to opt for a short-term loan if you do not have enough savings to cover expenses that have arisen suddenly. As you can see above, the sum we can borrow will not be very high, which means that they are the best loans for smaller expenses, for example for a small renovation, purchase of household appliances, preparation of holidays.

Short-term loans are the easiest to get online, but we can also use them in stationary loan companies. It is they who offer short – term loans most often. In most banks, the minimum cash loan period is 3 months. What is important, we usually pay a short-term loan in one installment or in several installments. Let’s remember to calculate well whether we can settle the obligation.

Pożyczka krótko i długoterminowa – plusy i minusy

Long-term loans:

• usually more formalities than in the case of short-term loans

• require appropriate creditworthiness – you may be required to submit your earnings certificates

• there may be a need to provide security – a surety, mortgage, signing of a promissory note

• repayment period from 3 months to several dozen years

• amounts from PLN 5,000 to several hundred thousand PLN

• perfect when we need more cash

When we need more cash, the long-term installment loan will be the best. This kind of loan will allow us to easily finance larger purchases, the costs of which can go up to hundreds of thousands of zlotys – then mortgages are most often used. When it comes to cash loans, they are usually offered on amounts depending on the client’s creditworthiness. We will get long-term loans in banks and loan companies.

At Cryobank, we have prepared an attractive non-banking loan for our clients that will allow you to borrow up to PLN 10,000 for any expense. The maximum repayment time is 24 months. The application can be submitted online now!

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