Private payday loans or by the bank?

Given so many payday loans offers it is difficult to know which one suits us and which ones have the best offers- Head over to The rise of personal loans granted by private lenders is due to the fact that, due to the crisis that has affected us for several years, banks are not as willing as before to grant financing and, in order to access these loans, the requirements are very demanding During this time of bank credit drought private personal loans grew and proliferated, granting loans to people with a risk profile somewhat higher than usual, such as people without payroll or who are enrolled in files of defaulters.

Differences in the personal bank and private loans

Below we explain the main differences between each type of loan. Depending on our situation and our profile, we can assess whether it suits us to request it from a bank or a private entity:


Private entities have always been known to apply higher interests than banks. This is due to the fact that these companies tend to take more risks when granting credits that the banking entities have rejected.
Today, private lenders have evolved and already offer personal loans that rival banks, such as the Cofidis project credit, which offers up to € 15,000 at 6.49% APR for any purpose.


Lenders grant a greater number of personal loans than banks. The interests are usually higher but their requirements are laxer than those of bank loans and people who do not have payroll or have been enrolled in files of defaulters can access credits thanks to private entities.


Personal bank loans usually take weeks to approve our loan; On the other hand, private lenders are distinguished by their speed, even granting high amounts we can have the money in our account in 48 hours from the approval of the loan.


If a client can not continue to meet the agreed monthly fee, banks usually give notices before taking other more radical measures and, in general, are open to renegotiating the fees to make it more accessible to the borrower. Private lenders tend to be more demanding when it comes to payments. In some cases, extensions are granted although it will depend on each lender.

Ranking personal credits

Taking into account when we need our money, how much money we want to ask or if we are in a “risk group” such as being enrolled in ASNEF or receiving unemployment, we can assess whether it is better to request a loan from one or another entity.