Loans – what is it?
Loans are a very secure form of raising funds to meet consumption goals. The granting of loans by banks is controlled by the Polish Financial Supervision Authority. Hence the high requirements that banks set for borrowers. Money obtained from the loan can be used for any purpose, as long as it is not associated with running a business. You can apply for a bank loan online without leaving your home. This offer is addressed to people who value comfort and their time.
What are the characteristics of loans?
How can you characterize loans? First of all, loans granted by banks are regulated differently from loans. In the case of loans, the provisions of the Civil Code apply. The lender does not have to be a bank. Loans can also be granted by loan companies, credit unions, business entities and natural persons. In the case of banks, the rules for granting loans are similar to the procedures to be followed to obtain a loan. Why is this happening? First of all, because banks must comply with the prudential standards issued by the Polish Financial Supervision Authority in the form of recommendations. And the PFSA treats loans as well as loans. Therefore, to obtain a bank loan, you must meet certain requirements.
Formalities related to obtaining a loan
How to get a loan from a bank? First of all, you need to complete a loan application. Importantly, you don’t have to go to personally. Let’s leave devotees to do all the formalities. Now you can do it online without leaving your home. The application can be found on the website of the bank of our choice. Its filling is simple. All you have to do is enter your personal details and specify the nature of employment and the amount of monthly earnings. You will also need to provide the number of dependents and specify the nature of your current loans that we repay. In addition, the bank will certainly require us to send a scan of ID card and employment certificate. After all these formalities are completed, we have to wait for the bank’s decision.
Requirements for borrowers
Based on the data we enter in the loan application, the bank will analyze our creditworthiness. Thanks to this, he will decide whether to grant us a loan. What conditions must be met to be able to expect a positive bank decision? First of all, we should demonstrate earnings at the appropriate level. The bank will also take into account the nature of our employment – especially whether we work on a fixed or indefinite contract. Of course, it will also be important how many loans you currently pay back, how much they are and how the sum of all monthly installments looks like. You must also be aware that the bank will scan your credit history in the BIK database. If you were an unreliable borrower and were in arrears with payments, you probably don’t have a chance to get a loan from a bank.
Loan – what costs?
What costs should I take into account when taking a loan? The interest has the greatest impact on the cost of the loan. Their amount depends on the nominal interest rate. It may not, however, exceed four times the lombard rate. The interest rate depends largely on the interest rates set by the Monetary Policy Council. In the case of variable interest rates, the reference point may be WIBOR, which is the interest rate applicable on the interbank market. Of course, interest is not everything – other charges also affect the cost of the loan. We mean the commission and the preparation fee. Loan insurance can also be an additional cost.
How do you choose the best loan offer? You can use the help of a simple tool which is a loan calculator. On the internet you will find a lot of such tools to compare loan offers. It is important to use only professional ones. Only calculators with a manual are worth attention. This is all the more important as incorrect input of data into the calculator can completely spot its results. All you need to do in the calculator is to enter the basic data – loan amount, interest rate and repayment time, and it will calculate the basic parameters of the loan. Thanks to it we will find out how many installments and how much we will have to pay back. Of course, we must remember that these are estimates and may differ from the bank’s offer. The calculator will show us dry data, without any interpretation. It depends on our economic knowledge how we read these results.