Licensed Non-Banking Financial Institutions of Sri Lanka

Non-banking financial institutions of Sri Lanka - what is worth knowing?

Loans in non-banking financial institutions

In non-banking companies, you can borrow money in the form of so-called payday loans . These are nothing but quick loans that can be obtained in just a few minutes and are usually for a short term loan - hence their name. They are provided to customers on a simplified basis, without unnecessary formalities. Companies do not impose strict requirements on their future borrowers.

As we have already mentioned, most often such loans are characterized by a short loan term, as well as a low minimum liability. They are taken, as the name implies, "for a while" - for a week, two or a month. Lending companies typically offer payday loans of several thousand rupees, ranging from 1,000 to 50,000 rupees, to be repaid within a maximum of a few months. It is possible to receive both smaller and larger amounts, but you need to know that when requesting a large loan amount, financial institutions will make more demands on potential customers in terms of their creditworthiness.

These offers include not only classic payday loans, which are repaid with interest at the end of the loan term, but also installment loans, which are repaid in the same way as cash loans. In the case of payday installment loans, the interest rate is higher and the costs may be more significant than with standard loans.

You should pay attention to payday loans for free, ie. those for which the borrower pays nothing for providing a financial obligation. Most often, such a free payday loan is addressed to people who have never borrowed money from this company before. Thus, we can say that free payday loans are part of a promotion aimed at attracting as many new customers as possible to this lender. Each subsequent payday loan granted to such person is already payable in full.

The first free payday loan can be offered in a limited amount, usually in the range of Rs 1,000 to Rs 25,000, and the loan term is usually 1-3 months, but with the possibility of extending the loan. Most importantly, in this case, there are no commissions or hidden fees that will be charged to the borrower. The client, using the payday offer for free, returns to the company exactly the same amount that he received, without any interest - they simply are not charged. A characteristic feature of free payday loans is that their APR - the annual real interest rate - is 0%.

However, there are important conditions in non-bank loans. They must be repaid by the date specified in the agreement, because otherwise the non-banking financial institution will have the right to charge interest, which will make the loan unprofitable. The repayment period cannot be extended as this also involves costs.

Who can take non-bank loans?

As we have already mentioned, online loans can only be issued by customers who have never used a loan offer in this company. This is an element of advertising struggle in the market, aimed at attracting the attention of borrowers. New customers are given the opportunity to "test" the offer of online loans in this company without the need to charge interest and additional fees.

In addition, the offer of quick loans online without interest can only be used by customers who meet the requirements of credit companies regarding the age or nationality of the borrower. As a rule, lenders - non-banking financial institutions, expect from the client that he:

• has reached the age of majority, usually between 20 and 22;
• has full legal capacity;
• not an elderly person - for example, many credit companies do not issue payday loans to people over 60 years old;
• is a citizen of Sri Lanka;
• is the owner of a bank account registered to his data;
• has his own mobile phone;
• is not a bad debtor listed in debtor databases.

In many cases, before issuing a loan, customers are checked in debtor databases - Credit Information Bureau of Sri Lanka (CRIB), which more and more credit companies have access to based on the exchange of information.

The first loan is free - is it really free?

Many customers of non-banking financial institutions may not believe that you can get a free loan online. However, in reality, this type of loan may be free. To check if the first free payday loan requires any costs, you should check the terms and conditions. If it states that the APRC is 0%, you shouldn't have any doubts about the payout under the free loan definition for free .

Now many non-banking financial institutions offer loans at 0.01% to get more customers. The first interest-free loan has no interest - the client returns exactly the amount that he borrowed. APRC, i.e. The actual annual interest rate, in this case, is 0.01%. The first loan can usually be obtained free of charge in the amount of 1,000 - 25,000 rupees, and the loan term is one to four months. Most importantly, there are no commissions or hidden fees.

What formalities do I need to follow to get a loan?

In order to take advantage of an urgent loan, you must correctly go through the application process, fill out a loan application - usually electronically, verify your identity and receive a positive credit rating. As a rule, no additional documents need to be attached to the loan application. You just need to indicate in the questionnaire how much you earn per month and where you work.

In some cases, a formal condition is to obtain a positive credit rating of the client based on data received from the Credit Information Bureau of Sri Lanka.

For how long can I get a payday loan for free?

Non-banking financial institutions process their loans in different ways. Therefore, it cannot be said that they have one universal loan term. Depending on the policy adopted by the lending company, a free payday loan can be granted for 30 days, 60 days, 90 days, and sometimes even 120 days. In the case of Lotus Loan, it is provided for 4 months: 122 days for first loan and 182 days for repeat loan. It is worth emphasizing that in this case we are dealing with short-term cash loans. Their redemption must occur after 30, 60 or 90 days from the date of withdrawal of funds to the client's bank account. Being late will cause the payday loan to be no longer free and you will pay monthly interest on the loan and renew the loan.

Where can I get a non-bank loan?

Many loan companies in Sri Lanka offer promotional free payday loans to new customers. For example lotus.loan. This company currently offers the option of using a payday loan of Rs.40000 and the loan term is 120 days. During this period, the client can freely use the loan. He just has to remember to return it within the time specified in the contract. Otherwise, the lender reserves the right to charge penalty interest and other fees, after which the offer ceases to be free.

Non-bank online loan without certificates - how to get it?

Most loan companies offer payday loans as proof, without proof of income or employment. What does it mean? That the borrower does not need to provide documents such as an employment contract, income statement or bank statement. A free payday loan without certificates is available for him, which he can receive in a very short time. It is enough to show up at the headquarters of the selected company with your ID or fill out an application online (then a copy of the document is sent by e-mail).

Depending on how the contract is concluded, the money can be delivered in cash or transferred to the client's bank account. From the same account, the borrower is most often obliged to transfer the verification transfer to the account of the credit company or to check through the appropriate applications.

The advantage of an online loan is that all the formalities associated with its issuance are simplified, so the client does not have to wait too long for a loan decision, and hence the payment of money.

A loan without CRIB verification in financial companies - is it possible?

Credit Information Bureau of Sri Lanka is a banking system that stores information about borrowers. There you can find data on current obligations or loans already repaid (in this case, they will appear when the borrower has agreed to this in order to increase creditworthiness or when the obligation has been significantly exceeded). Banks, whether they decide on a mortgage loan, a car loan or cash loan , always check the customer's history in CRIB. Any problems with payments may result in the rejection of your loan or loan application.. However, it should also be noted that clients can build a positive credit history by paying off their loans and loans regularly. Then such information, received by the bank in the process of checking the client, works to his advantage and speeds up the issuance of a positive credit decision.

If you are concerned that this system may contain information about your debt, you can download your report on the CRIB website. Some credit companies cooperate with them on the basis of reciprocity. So if a few years ago no company of this type used CRIB databases, today it is possible. In this way, the lender can see if the potential borrower has any delays in the payment of loans and advances.

However, it is worth paying attention to the fact that non-banking companies are not as strict about entries in CRIB as banks. If a bank refuses to issue a loan because of a bad credit rating, this does not mean that you will not receive a loan. non-banking financial institutions can be sympathetic to a bad credit history and issue a loan without any problems. The only thing that can affect is the amount of the loan. It may turn out to be much less than what you ask for. In the non-bank loan market, they are called loans with a bad credit history. However, the lender always tries to control the creditworthiness of its customers using other databases.

How to choose the best loan online with CeylonLoan?

To choose the best free online loan from non-bank institutions, you should use the help of the loan comparison system - CeylonLoan . How does it work? For a fully automated tool, it is enough to enter the amount of the obligation and the maturity date to generate a list of offers tailored to your needs. To see which one is interest-free, choose the 'free first loan only' option and the comparison site will show free online loans . The best loan for free is a loan that will fully meet your requirements in terms of the term and amount of the loan. The free online payday loan is quickly transferred to the bank account that you provide when applying for a loan. You can get a cash loan at the offices of companies.

The list of submitted loan offers from our partners includes information such as company name, loan amount (also noted maximum debt amount), maturity, cost (percentage determined using the APRC value), total amount due and payment amount on credit. As a result, all the most important data is listed, and comparison of offers is simplified.

After choosing a microloan, carefully read its terms and conditions and read the contract . It is also important to make the decision to only commit to trusted loan companies that have good reviews. Thanks to this, you can reduce the risk of getting a payday loan with additional high fees that the client does not know about when making a decision. All licensed non-banking financial institutions of Sri Lanka are represented on our website.

A good way to find a low-cost loan or a free loan is to use rating of non-banking financial institutions . It is important to check them only on independent financial sites, and not on sites created for a particular company.

The main terms of the obligation are analyzed in the loan rating. Only the best deals are sent to them , which are then sorted from most attractive to least attractive.

What you need to pay attention to is the ranking date. Loan terms change so fast that only up-to-date data matters.

Why is it worth getting a loan from a non-banking financial institution?

The advantage of free payday loans is, of course, the fact that you can take them at no extra cost. Thus, you give the loan company exactly the same amount that you borrow. There are no hidden costs or commissions. A free payday loan will allow you to test the company's offer.

The disadvantage of such loans is their short loan term - usually only one to four months and a small amount - no more than 50,000 rupees today. However, for many borrowers, this may be enough.