A bank loan is a very general concept. We provide it by banks based on the provisions of the Banking Act. In addition, the activities of banks are also controlled by the Polish Financial Supervision Authority in the form of recommendations. Banks grant loans to both natural persons and business entities. In the case of corporate loans, we distinguish between working capital loans, overdraft facilities and investment loans. In turn, the banks’ offer for natural persons includes: housing loans and consumer loans – cash, car, student loans, as well as a loan in a savings and checking account. The most popular type of loan is undoubtedly cash loan. First of all, its popularity comes from the fact that the funds obtained from the loan can be used for any purpose. As a result, the borrower can finance both home renovation and vacation, as well as children’s education.
Bank loan – costs
What costs make up a bank loan? The most important loan costs are interest. They result directly from the interest rate on the loan, which cannot be higher than four times the lombard rate. The loan interest rate can be fixed and variable. Fixed interest usually accompanies short-term loans. The installment is also fixed then and the repayment schedule once adopted is valid for the entire duration of the loan agreement. In the case of variable interest rates, the situation is completely different. The variable interest rate consists of a fixed (margin) and variable part, the amount of which is shaped in relation to a specific reference point, which is usually WIBOR, i.e. the interest rate applicable on the interbank market.
Subsequently, the cost of the loan also includes fees – commission on granting the loan and preparation fee. Insurance can also be an additional cost of credit. However, you must consider whether you really want to use this option. The insurance premium will increase the amount of the monthly installment. In the event of your death, incapacity for work or disability, the insurance company will pay your debt.
APRC – quick view on costs
How to quickly assess the total cost of a loan? The Real Annual Interest Rate will help us. This is a factor that perfectly reflects the relationship between the cost of the loan and the amount we will receive under this loan. It is expressed on a percentage scale. The method of calculating the APRC is strictly defined in the Consumer Credit Act. The method of its calculation is therefore identical in every bank. Therefore, the APRC is an excellent and reliable tool for comparing credit offers.
Conditions for obtaining an loan
Banks base their credit policy on restrictive guidelines contained in the Banking Act. To obtain a bank loan, a number of requirements must be met. First of all, you must be an adult and have an identity card. You must then submit your employment and earnings certificate to the bank. The situation with entrepreneurs is slightly different. To obtain a loan, they must submit a certificate from the Social Insurance Institution and the Tax Office, as well as settlements with PIT for the previous year. Of course, in order to have a chance for a loan, you must first complete an appropriate application, based on which the bank will analyze our creditworthiness. It will mainly take into account our earnings, number of dependents and our credit history at BIK. If you have recently not repaid other financial obligations on time, you are unlikely to get a loan.
Types of bank loans
Loans can be divided into two basic groups: loans to business entities and loans to individuals. In the first case, we can mainly distinguish an investment loan, often a flywheel of the economy, a revolving loan, as well as a current account loan, which ensures liquidity for corporate finances in more difficult periods.
In the case of loans to individuals, we can distinguish a housing loan (usually in the form of a mortgage) and a consumer loan. The latter, in turn, are divided into car loans, student loans, loans in ROR, and cash loans.
Cancellation of credit
You can withdraw from the loan agreement if you submit your resignation in writing within 14 days from the date of the financial commitment. We do not have to specify the reasons for our decision. The bank cannot demand this from us. Cancellation of the loan after signing the contract is possible thanks to the provisions of the Consumer Credit Act. Of course, we must return the entire amount borrowed to the bank. We have 30 days from the day of submitting the statement of withdrawal to the contract. This is a gate for people who decided to take a loan too hastily and would like to back out of it.