Cash loan is one of the most popular ways for Poles to get into debt. We borrow very willingly for various purposes – for holidays, for the car, for the education of our children. The level of earnings in Poland does not allow to finance all of this savings, because in principle Poles do not. Banks make it easy to get into debt, because you can do everything online without leaving your home. However, you must have adequate creditworthiness. Banks thoroughly analyze our earnings and financial liabilities, and also scan our credit history in BIK. Despite more stringent requirements than in the case of payday loans, loans are very popular as a relatively safe financial product. Thanks to the KNF control, banks conduct a strictly regulated credit policy. To choose the best loan offer, you should compare it in terms of APRC. If you want more information about cash loans, read this article.
A cash loan
What is the characteristics of a cash loan? First of all, it should be mentioned that the money you get thanks to the loan can be used for any purpose that is not related to running a business. The rules on which banks grant loans are specified in the provisions of the Banking Act. These rules are quite restrictive. In addition, banks in Poland are also subject to the supervision of the Polish Financial Supervision Authority. It is an institution that imposes prudential standards on banks in the form of recommendations that banks must comply with.
What conditions must be met to get a loan?
To receive a cash loan, you must meet a number of requirements. First of all, you must have an ID card. Adolescence is a necessary condition. The bank will certainly demand from us proof of employment and earnings. If we are pensioners, we will have to present a document on the basis of which we have been granted a benefit, as well as a last transfer slip. However, if you are an entrepreneur, you will have to provide a certificate of non-payment to ZUS and the Tax Office. It is possible that the bank will also demand your PIT settlement for the previous year.
Based on these documents, a bank analyst will assess your creditworthiness. Theoretically, there are two ways to end this process. The bank will clear you off declaring you are unable to pay back the loan, or will positively assess your financial capabilities and grant you a loan. However, the third option is still possible. The bank may consider that it will grant you a loan if it is subject to additional conditions. In this case, the bank may request credit insurance or guarantee. In the first case the cost of credit will increase, in the second you will have to find a trusted person who will agree to be your resident.
Cash loan costs
What costs are associated with taking out a cash loan? The basic cost of the loan is interest. Their amount results directly from the interest rate on the loan, which the bank provides on an annual basis. The interest rate may not be higher than four times the lombard rate. The amount of the lombard rate is set by the National Bank of Poland. The interest rate not only affects the total cost of the loan, but also shapes the amount of the monthly installment, it also has a direct impact on our finances.
In the further order, the loan costs will generate a commission. It is often included in the loan amount. Sometimes banks also offer credit insurance. His contribution will be included in the monthly installment. However, it should be borne in mind that credit insurance works primarily in favor of the bank. The insurer will pay the debt if you die or are unable to work.
How to calculate the total cost of credit? First of all, you should lean over the Real Annual Interest Rate – APRC. It is a parameter that includes not only the interest rate on the loan, but also any other additional fees – commission, margin or preparation fee. The APRC calculation method is uniform for all banks. It is therefore an excellent tool for comparing credit offers.
Remember! You can opt out of the loan
His, after signing the loan agreement, however, you will come to the conclusion that you decided too hastily, you can still withdraw from it. This is allowed by the provisions in the Consumer Credit Act. You have 14 days from the date of the financial commitment. Cancellations must be in writing. Of course, you are obliged to return the entire loan amount. You have 30 days from the date of submitting the statement on withdrawal from the loan agreement.