What is the difference between an online loan and a cash loan?

What is an online loan?

What is an online loan?

First of all, important information is that the loan is regulated by the Civil Code. Currently, both online loans and loans in stationary outlets are available. The loan can be granted by financial institutions, but also by a private person. The lender must be the owner of the funds borrowed.

The customer, in turn, does not have to explain the purpose for which he borrows money, and the lender has no right to check it. The lender provides a certain amount of money or things to the borrower, and the borrower has to repay or return it within a specified period. Not only that, if the loan does not exceed USD 500, it does not even have to be a contract. The same applies to the value of things, except that they cannot exceed USD 1000.

A loan is a product that is easier to receive than a loan. Often, you only need your ID card and our income statement to get a loan. Without the need to provide certificates or account statements. Increasingly liberal and ingenious offers appear as an incentive to take advantage of parabank loans.

A very well-known proposition is the first loan option for free. This means that we will not incur any costs for this for the first time when we make such a commitment. This is to make the customer familiar with this product, which may result in taking advantage of another, this time payable loan. There are also online loans for indebted customers, loans without BIK, and even for people who have a bailiff.

What is a cash loan?

What is a cash loan?

A cash loan is a financial product that is only granted by banks. Its functioning and rules for granting and servicing are regulated by the Banking Act. The loan agreement must always have a written form which contains information, i.e. the amount of the loan, repayment terms and rules, as well as its pricing conditions, i.e. interest, commissions and other fees.

In addition, the Consumer Credit Act regulates the obligation to repay the loan within the set time limit with interest due. There is currently no free and free credit offer on the market. It is always associated with costs, but usually they are lower than with a loan. We can spread the loan into monthly installments and repay it on the agreed date, ensuring that the payment date is not exceeded.

Granting a loan usually requires specifying the purpose for which the funds will be used and this purpose should be financed from this loan. In addition, in order to take out a loan in the vast majority of cases, you must document your income, e.g. by providing a certificate from your employer about your earnings or a pit for the previous year.

A cash loan can be obtained at a bank branch, but an online loan is also available, which is a much more convenient option for customers. Online loans, however, usually amount to lower amounts than those we could take in stationary branches.

What is the difference between a loan and a cash loan?

What is the difference between a loan and a cash loan?

Credit and loan – how do they differ? What makes a loan different from a loan is that you need to go to a bank for a loan, and for a loan to a loan company or even to a private individual. Due to the greater restrictions and requirements for a cash loan, what is the difference between a loan and a cash loan is that it is usually more expensive.

In the table below I will present the key differences between a loan and a cash loan.




Who gives this commitment?


loan companies or a private individual


lower price

higher price

Contract Type

written agreement

written or oral agreement


Interest, commission and other fees included in the contract

It can be free

Purpose of the commitment

Given in the contract

It does not have to be provided

Legal regulation

banking law

Civil Code

Better cash loan or loan?

Credit or loan – which is better? Many people think about this when choosing the right offer. There is no one specific answer. The most diplomatic is: it depends. Namely, this is the purpose for which we need money and whether we care about price and time. If we care about time, but not the price, it’s better to choose a loan.

There is less formalities, the process is fast, sometimes even automatic, but the price may be higher. Of course, apart from the offer of the first free loan. If we have time, but we want to have a cheaper option, then it is worth choosing a cash loan. Both of these products are regulated, but cash loans have more restrictions and their functioning is strictly controlled.

Asking yourself – “loan or credit, what better?”, It is worth answering the question: what is important to me? Only then should a decision be made. The decision to borrow money should be a well thought-out and informed decision. You can even write both pros and cons for the best choice.

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