There are several reasons why revolving financial products have an advantage over traditional cash loans or non-bank loans. The key is renewal, thanks to which a small repayment of part of the money spent allows you to enjoy additional funds again. In this way, we can repeatedly spend money on any purpose, at a time and place convenient for us. For comparison – an installment loan and loan are a one-time payment, and if you want to receive another amount of money, then you need to visit a bank or apply online. For this we still have to wait for the decision of the financial institution, which may not always be favorable to us. On the plus side of renewable limit products, it should also be noted that interest is charged only on the amount actually used, not on the whole limit.
Revolving loan limit
This is a relatively new product offered by companies from the non-banking sector, which currently only offers three non-banking entities. Wardo allows you to always have access to amounts of between 300 and 5000 PLN. At Mexiloan, we can apply for a limit of PLN 3,000 to 12,000, and Euroloan offers a credit limit of PLN 50 to 5000. The revolving loan limit combines the features of payday loans and the revolving limit on the bank account. First, getting it comes down to completing the online application. A non-banking company will check our creditworthiness, and after issuing a positive decision, it is only up to us when we will use additional money and what amount we will use at a given moment. Then we pay back the amount we paid. We can also pay only a part of the amount due or pay the minimum required amount and have the limit again. When we decide that the limit is superfluous, all you have to do is pay the entire amount.
Revolving loan account
A revolving loan in a bank account has slightly different laws than its alternative from the non-bank market. First of all, in order to be able to launch a revolving loan, it is necessary to have a personal account in a given bank, because it is the ROR balance that will be increased by the amount awarded. Money for the repayment of the sum we spent is usually taken from our salary, scholarship or retirement when the funds are transferred to our ROR. Therefore, we are relieved of remembering to pay the appropriate amount. It is enough if our invoice is regularly topped up. An account revolving loan is also granted for a specific period of time – usually 12 months, after which it can be extended or repaid and closed.