Non-bank Loans – The Myths and Truth About Non-Bank Cash Loans.

Non-bank loans and the opportunities they offer are widely known today, with non-bank mortgages, car loans and credit consolidation becoming increasingly popular with consumers. Every news, technology or service, we take with caution, despite the fact that it can improve and make our daily life easier.

While 10 years ago non-bank lenders in Latvia were just taking their first steps, nowadays more and more consumers are realizing that they are able to provide more flexible and profitable lending services. Each of us has certainly encountered various myths about non-bank loans and non-bank lenders in Latvia. But what is the industry really like? Here’s a quick look!

Non-bank loans in Latvia

Non-bank loans in Latvia

The fact that non-bank loans are becoming more popular in Latvia and that the share of cash loans from non-bank lenders has grown is not a myth. In 2018, non-bank lenders in Latvia issued USD 629.86 million in cash loans. * In addition, more than a third of consumer credit in Latvia goes directly to non-bank lenders rather than banks. ** This means that people’s confidence in non-bank lenders continues to grow addressing them not only with short-term needs but also to help you make long-term plans that are important to yourself, your family, or your business.

Of course, the wide range of services available to non-bank lenders has significantly influenced consumers’ ability to choose the most appropriate financial solution for a variety of life situations. However, the development of consumer lending practices in the non-bank sector has also made borrowing money outside the bank a reliable and secure service.

Namely, myths about unclear terms for non-bank lenders are becoming increasingly difficult to maintain, as non-bank lenders in Latvia have to follow the same lending terms as any bank.

For example, to protect borrowers, it is stipulated that credit costs should not exceed 0.07% per day, and everyone has the right to cancel a non-bank loan within 14 days. In addition, lending in Latvia requires a special license, which serves as a guarantee that the non-bank lender operates in accordance with Latvian law, is safe and reliable.

Non-bank lenders – top-notch customer service

Non-bank lenders - top-notch customer service

Are non-bank loans, especially online cash loans, reliable and secure? The answer to this question is likely to have been sought by many! It is safe to say that the quality and reliability of the services provided by most non-bank lenders are self-assured.

However, the high quality of these services is also evidenced by customer surveys, which indicate that customers tend to be more satisfied with service directly with non-bank lenders. Since customers often reach the non-bank lender directly online, they rely on top-notch customer support with personalized, operational and advanced solutions such as credit calculators or online support.

As the range of non-bank credit services grows, the relationship between the lender and clients in providing and receiving the service has also changed significantly. As demand for long-term loans grows, and so does the demand for financial advice and support, non-bank lenders increasingly combine online customer service with on-site customer service.

Customer service centers for non-bank lenders across Latvia have become a place for people to seek advice and help with financial issues, not just unscheduled but also planned, with the help of financial and credit specialists.

Non-bank credit loan – financial solutions for more than 10 years

Non-bank credit loan - financial solutions for more than 10 years

Non-bank loans to consumers are far from familiar to consumers. In addition, the services offered by non-bank lenders have undoubtedly developed significantly. While 10 years ago, non-bank lenders were primarily focused on fast credit for unscheduled financial problems, today a range of new services are available: long-term cash credit, car loan and re-credit.

Just as the portfolio of non-bank lenders’ services has changed, so have consumer habits, both in terms of borrowing and using cash loans.

The modern and convenient services of non-bank lenders are no longer used solely to meet short-term financial needs but, on the contrary, for long-term goals. The freedom of non-bank lenders to spend money allows consumers to use cash loans when traveling or arranging a home, or to finance, for example, healthcare.

Non-bank mortgage loan

Non-bank mortgage credit is one of the most popular non-bank lender services that allows you to not only buy real estate or improve an existing one, but also use this long-term loan to fulfill any other needs. Not without reason, non-bank lenders face significant competition from banks – compared to bank offerings, it is easier to apply for a non-bank loan and its terms are often more flexible.

Non-bank loan for car purchase

Similar to mortgage loans, car loans are offered by both non-bank lenders and banks. However, consumers are also increasingly turning to non-bank lenders to obtain this loan, which is used to purchase a specific product or car. This is mainly due to differences between non-bank and bank offerings in terms of cash loan amount and maturity.

Combining non-bank loans

One of the latest trends in the range of non-bank lenders is the pooling of non-bank loans. Like other non-bank lender services, tailored to the needs of today’s customers, re-crediting allows you to combine loans in one convenient payment with better interest rates and repayment terms. In addition, existing debts or credit obligations to be re-credited will be extinguished within one business day.

Non-bank loans and entreprenUSDship

Non-bank loans and entrepreneurship

Non-bank loans to individuals have become one of the primary choices to address their own or family’s long-term needs. However, much less has been heard about non-bank loans as financial solutions for business. You may have heard the assumption that non-bank loans are for companies that cannot obtain a loan from a bank. Such an assertion is far from true. While it is true that many borrowers who have declined a bank offer can get a business loan from non-bank lenders.

However, there are other good reasons why many small and medium business owners are looking for alternatives to bank lending. For example, business owners who need cash often turn to non-bank lenders to obtain finance within 24 hours. Meanwhile, the loan approval process in banks can take considerably longer – up to several weeks.

In addition, the flexibility of short-term financing solutions allows business owners to deal with unexpected cash flow problems without the burden of a 5 or 10 year loan service. More and more entreprenUSDs appreciate the opportunities offered by non-bank loans, which give them more control over their finances and often even reduce the overall cost of borrowing.

Comparing bank and non-bank borrowers

Comparing bank and non-bank borrowers

Another common myth about non-bank credit spreads the assumption that the banking sector has a higher credit portfolio quality than the non-bank sector. Or, to put it simply, that bank borrowers are generally able to pay off their loans on time, which means less delays in their due dates. In fact, the share of loans overdue for more than 6 months accounts for 7% for non-bank loans and 5% for the banking sector. addressing long-term needs.

Do you want to know more about the services provided by lenders – long term or short term loans? Familiarize yourself with the article “Long-term or short-term loan – how to find the most suitable for you?”.


Free Consultation Increases – Chance of Loan Conclusion.

Did you know that only 10% of the customers who apply for a housing loan can come to the title deed?

Did you know that only 10% of the customers who apply for a housing loan can come to the title deed?

9 out of 10 people who dream of owning a home loan cannot proceed for the following reasons:

  • In case of hidden costs incurred in addition to the mentioned prices, it is revealed that 10 thousand USD will be lost,
  • Rejection from bank due to wrong or incomplete application,
  • Decreasing the credit score and decreasing the probability of obtaining credit due to the refusal of the banks.
  • Sale of the house to someone else due to the extension of the process,
  • Lack of knowledge of how to solve the simple problems related to the house during the appraisal phase,
  • Process and communication problems in the branch.

Work with a free mortgage consultant to minimize these problems and increase the likelihood of buying your home with credit. Because:

Work with a free mortgage consultant to minimize these problems and increase the likelihood of buying your home with credit. Because:

  1. Your request, income and expense information is detailed, your application is prepared in the right way and the probability of rejection is reduced by 4 times.
  2. The most advantageous prices on the market are determined for you, there is no need for a meaningless negotiation process where you do not know where to stop. Moreover, banks do not charge an additional fee on credit for this service.
  3. If you have an exceptional situation, you can only choose between the banks that can respond to it, apply to dozens of banks and take your credit score down, you do not reduce the possibility of using credit.
  4. At each stage you will have a consultant who will take care of your questions and problems.
  5. Your consultant has the authority to negotiate with the bank for you and to follow your process. This will solve problems faster.
  6. In case of problems in the appraisal report, you will evaluate with your mortgage consultant and produce solutions.
  7. If you want to proceed with another bank, the process will continue where you left off, you will not start from scratch.
  8. Credit consultancy services are provided and audited through service contracts signed with banks in accordance with the regulations issued by the BRSA. For this reason, the whole process is carried out in a transparent and clear manner, you are in control.

As a result, consumers who receive free credit advice will use their loans easier, faster and cheaper .