Who with whom: loan versus hire purchase


Based on several parameters, we have compared what is more worth it. Non-bank loan or hire purchase? Before we begin the comparison, we have three universal rules for you. If you follow them when negotiating cash loans and hire purchase, you can easily see what pays off the most.

  • Always read the terms and conditions of the contract so that you are not surprised at how much you have overpaid.
  • Take the time to compare your bids, and you may find that you would be better off elsewhere.
  • The next non-bank loan or installment purchase should only be made when you have first paid up.

The last rule may not seem to be related to the previous rule, but believe it will save you a lot of trouble.




If your refrigerator breaks and you need a new one quickly, it is ideal for hire purchase. Once you apply for it in the store, you will be able to find out if the seller has approved it for you within 20 minutes, which is even faster than online loan. The goods are then taken home and you do not have to deal with an intermediate step in the form of negotiating a cash loan. Remember, however, that the installment purchase includes a down payment, the first increased installment on the spot. It may be zero, but normally starts at around 10% of the price of the goods.



Repurchase purchases often involve various promotions and discounts. If you are lucky, you will get your dream goods cheaper than the competition and still with no down payment. But it takes a bit of search and happiness. Otherwise, the down payment may cause the initial costs to be too high and you simply will not have the goods. With the cash loan the down payment problem disappears and you can spread the installments over a longer period of time. Non-bank loan is therefore our winner.

Simplicity of negotiation


At this point it is almost a draw. You can solve installment purchases directly in the shop in minutes and online loan will not take much time. Nevertheless, a better option is a non-bank loan – ideally online or by phone. You can buy it from sellers who do not allow installment purchase.


Who won?

Comparing the benefits in each area showed that it is not clear whether installment purchase is more advantageous than a non-bank loan or vice versa. Every payment method has its advantages and disadvantages and it is up to you whether price or speed is more important to you.

If you need new goods especially quickly, buy it in installments. But if you have a down payment problem or you need a longer repayment period, the solution is a non-bank loan. With that, you can buy anywhere.

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