In recent years, banks’ policy regarding granting loans has changed significantly. The change is that the conditions for granting housing loans amounting to large sums have been tightened and access to small cash loans, also called consumer loans, has been significantly reduced. Although they are more available, you still need to meet a number of employment and earning requirements to receive them. So generally speaking, you must have adequate creditworthiness. And even despite the fact that in order to obtain a consumer loan, you must comply with all these formalities, it is still a very popular financial product on the market. Annually, Poles are indebted for around USD 30 billion and the vast majority of this amount are small cash loans for any purpose.
How much does a consumer loan cost?
The cost of each loan is expressed in the APRC value (actual annual interest rate). This is the total cost of the loan granted on an annual basis. In the case of cash loans, it is usually between 10 and 30%. What makes up the total cost of the loan? First of all, it includes the bank’s margin, i.e. its earnings increased by the WIBOR rate, i.e. the rate at which banks borrow money from each other. Together, we call these two components the interest rate on the loan. promotional offers may amount to even 4% on an annual basis, although there are even offers with zero interest rate. In addition, the APRC includes the bank’s commission for granting the loan and other costs necessary to obtain it. When comparing several loans at different banks or even payday loans at loan companies, it is always worth comparing the APRC value with each other, as it gives the most realistic and fair comparison.
How to get a consumer loan?
We mentioned at the beginning of the article that in order to receive a cash loan we will have to meet a number of restrictive requirements. The basic thing is to have a valid ID card, because the loan can only be obtained by an adult who resides in our country. In addition to providing all your data, we will definitely need to provide the bank with a certificate of our employment and earnings. This applies to professionally active natural persons. In the case of entrepreneurs, certificates from the Social Insurance Institution and the Tax Office will be necessary, and in the case of pensioners we will have to present the relevant document proving the benefit awarded to the bank. The bank will also ask us about our current, permanent household expenses, the number of dependents and whether we have any financial obligations such as loans, credit cards, account limits or, for example, maintenance. With larger amounts, our credit history in BIK will also be checked. That is why it is always worth paying off your obligations on time, so that you do not have trouble getting a new loan later.
Only on the basis of all this information will the banking system, supporting the analyst, assess creditworthiness and decide whether to grant us a loan. The ideal situation is when the bank issues a positive decision and we only have to sign the contract and wait for the funds to be transferred. However, it often happens that a bank analyst will negatively assess our ability to pay back the loan. This decision may be final, or the bank will try to negotiate additional conditions with us. This could for example be the option to take out additional insurance that will increase the cost of the loan or the need for a credit guarantee from a third party.
How do you find the best cash loan?
By the way, it is worth mentioning that we should not use the offer of the first better bank. The prevailing competition in the market has made the banks fiercely fight for each client and often use various types of promotions to maximally reduce the cost of granting a loan. They compensate for the small earnings by getting a client and hope that in the future he will bring them more money. Therefore, to find the most attractive offer is worth using credit comparison websites available on the Internet. Thanks to this solution, after entering the loan amount and repayment length, we will receive loan calculations in all available banks in the blink of an eye. The details such as interest rate, commission amount, APRC, total cost of the loan and finally: the amount of the monthly installment will be specified. Thanks to such calculations, we will be able to quickly assess which offer is the most attractive to us. And also real in terms of maintaining financial liquidity when planning a household budget.