Are payday loans safe?

The digital lending industry has been operating on the Polish market since 2012. Currently, most companies offer online loans. Vivus products are the most popular. Last year, the company reported a profit of PLN 95 million (net).

Currently, the vast majority of loans are granted via the internet. Poles loved payday loans online because of their convenience. In this case, the process of gaining access to additional funds is carried out remotely.

How does payday loans work via the internet? It is very easy

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First you log in to the website of the selected company. Then you apply for a loan. After examining the application, the money is transferred to your bank account. The whole procedure may take several minutes.

What about security? After all, submitting a loan application requires sensitive information – such as a pesel number or ID number.

On this ground, companies had to face two challenges:

  • trying to get a loan for someone else’s personal data
  • fake websites whose creators tried to fool customer data

The first problem was solved by detailed verification of the customer’s identity. The most popular form of verification is to make a transfer to your company’s account. In this case, you transfer a small amount of money to the indicated account (usually it is 1 zloty or 1 penny). The loan company then compares the transfer details with those you entered in the loan application.

The Internet is the main channel for acquiring new customers

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More and more entities decide to introduce comprehensive verification applications (e.g. Kontomatik, Groszconnect etc.). When applying for a loan, the company will ask you for permission to access your bank’s database. After obtaining such access, more accurate verification is possible.

Loan companies must comply with the provisions on the protection of personal data. Therefore, they cannot store your data longer than necessary to perform the provisions of the contract. The internet connection on the login pages is always encrypted.

Unfortunately, there is no technical way to guard against sites that are trying to impersonate real businesses. In this case, you must rely on your caution. It is a good idea to read the opinion about the potential lender and check whether this company is on the list of the Polish Association of Loan Institutions.

Due to this, loan companies have been trying to improve the protection system from the very beginning of their operation on the market. Using the services of companies that have been on the market for a long time is completely safe.

Read the article from which you will learn how payday loans check the borrower’s employment and personal identification.

Payday loans is worth it

Payday loans is worth it

It all depends on your needs and possibilities. You must remember that the payday amount is usually between 1000 and 2000 PLN. The payday payday payment (as opposed to bank loans) is usually made in one installment. Given the convenience of access to funds – payday loans are a good solution for people who quickly need a small amount of money.

Research indicates that the majority of customers devote the borrowed amount to the implementation of shopping impulses (e.g. purchase of home appliances, gifts, use of promotions, etc.). The Polish Association of Loan Institutions indicates that the introduction of a trade ban on Sunday reduced the inflow of new applications for payday loans by as much as 18%.

Micro loans are trying to fill the gap in banking products. Their features can be useful for a customer who, for example, met an attractive promotion for a dream item in the store, and did not anticipate this expense in his budget. Using a mobile phone, he submits an online loan application and after a few minutes has the funds in his account. This procedure is not possible for classic consumer bank loans.