All posts by Lori Mead

What do you know about loans? Most of us compare the nominal interest rate above all!

Over 80% potential borrowers indicate the nominal interest rate as the most important parameter when choosing a bank granting a cash loan. The second installment (about 60 percent of responses) was the monthly installment. Half of the respondents said that the margin was also important, and only about 30 percent. respondents remembered that the price of the cash loan was also determined by the possible insurance. The research, commissioned by Betin Bank, was conducted at the threshold of this year’s autumn by the Judeward Green Institute.


The interest rate

The interest rate

Commission and insurance-related costs are the main components of the Actual Annual Interest Rate (APRC). All these elements were reflected in the answers given by the respondents. However, the percentage differences show that customers do not analyze the most important loan parameters together. It is worth noting that only the APRC takes into account all costs and fees related to the contract, which makes it possible to objectively compare the offers of various banks – notes Katarzyna Bajor from the Retail Credit Office Betin Noble Bank SA. He adds that in recent years, thanks to numerous information and education campaigns carried out by both banks and consumer organizations, one can observe a gradual increase in awareness among people using financial services and products.


Know the cost of a loan before taking it

Know the cost of a loan before taking it

It is worth recalling that consumers have the right to know the cost of a loan before taking it, and the law limits the maximum interest rate on loans (up to four times the so-called NBP Lombard rate). However, we should remember that the nominal interest rate differs significantly from the abovementioned APRC. For ease of reference – most banks provide examples of APRC for a selected loan in their loan offers. This calculation helps in comparing offers.

The Judeward Green Institute is also checking what Poles spend money borrowed from banks. The financing of the cost of renovating the apartment and purchases of home appliances / electronics are invariably dominating.

Road to cash loans

Debt is a great benefit for a household, provided you understand the procedures for granting cash loans and know the potential of your household budget. In the article you will learn the rules for providing short-term loans in relation to the customer’s creditworthiness. You will see that the way to get a cash loan based on the basic factors is not so difficult.

The path to short-term loans is getting simpler

The <a href=path to short-term loans is getting simpler” />

First of all, it is worth thinking about where you want to take out a cash loan. Popular solutions include retail banks, loan companies, parabanks, individual investors in the social loan segment. The place of making the commitment depends on the comfort of customer service, in many cases costs, availability of additional money, amount of formalities. Loan companies are one of the best alternatives, especially on the internet. You don’t have to have very high monthly income to get a cash loan. Just legal employment, e.g. an indefinite employment contract, a mandate contract, a contract for specific work and the stability of receiving funds. In this way, there are no contraindications to grant a cash loan. If you pay off a small cash loan in a loan company on time, the next contract gives you better terms of cooperation and automatic reduction of formalities. Lending companies focus on loyalty, as well as setting specific limits for new customers. In the case of the first cooperation with a loan company, do not expect large amounts at your disposal. You must show that you are paying honestly.

Creditworthiness included

Creditworthiness included

With small cash loans, you no longer have to worry about excessive non-interest costs or even above-average costs of debt collection fees in the event of problems with repayment obligations. The regulations have changed a lot in favor of borrowers. The fight against usury loans is visible and very effective. Building positive credit standing and credit history is currently the most important from the perspective of a small borrower. Loan companies rarely serve highly risky clients due to the lack of profitability of this approach.

Evolution of the short-term loan market


The short-term loan industry is developing intensively, while undergoing many qualitative as well as legal changes. In the article you will learn the main factors that have changed the market of smaller cash loans in recent years in Poland.

Finally there is a greater fight against usury practices on the loan market

Finally there is a greater fight against usury practices on the loan market

Society strongly stigmatized usury loans, especially against mortgages. Some people were paid extra money, usually small, provided that they entered the loan agreement with collateral in the form of real estate, the largest life asset. Such agreements were often terminated especially after minor misunderstandings, and loan institutions ordered the transfer of real estate. Most of the similar practices have been publicized, and the Polish Financial Supervision Authority has also dealt with the issue to a large extent, and work is currently underway on projects that will virtually eliminate usury practices from the economy.

Short-term loans on the internet are a great help for the client

Short-term loans on the internet are a great help for the client

The development of internet technologies was of great importance for the optimization of the short-term loan market. You can take short-term loans through dedicated websites at much lower rates. Some loan companies do not have to maintain expensive stationary branches, and this guarantees better conditions for cooperation with retail clients. Short-term loans are monitored by the Polish Financial Supervision Authority. Just a look at the popular list of warnings to learn about the risk of establishing cooperation with a particular loan brand. Pursuant to legal regulations, parabanks and retail banks must provide customers with information on the total cost of the liability. As a result, the cash loan comparison market has grown significantly. This is very good information, because the customer has gained greater awareness of the credit offer, has the tools to fight dishonest lenders, and reaches for money much faster, mainly thanks to the websites of loan companies.

Other elements of the short-term loan market development

Other elements of the short-term loan market development

In the industry, you deal with numerous financial intermediaries, partner programs for the promotion of cash loans, with payday loans linked to large promotions, e.g. the first repayment for PLN 0. Market competition, access to credit knowledge and borrower protection measures are important elements in the evolution of the short-term loan sector. How do you rate these factors regarding cash loans?

Mortgage loan offers

Banks has in its offer a mortgage loan offered in Polish currency. The maximum loan period here is 35 years, up to the age of 80, which is the oldest borrower. The maximum loan amount that can be taken out of this offer is 90% of the value of the real estate being credited.

There is no limit to the maximum amount of consolidation loan and mortgage.

There is no limit to the maximum amount of consolidation loan and mortgage.

The minimum income that a borrower must have to be able to apply for a loan at this bank is very low, because it is only PLN 800. For money, we can buy a construction and agricultural plot, as well as residential and service properties. The reference rate for the mortgage in PLN is 3M WIBOR, which means that it changes every three months and its new rates are set on the basis of market changes. A commission ranging from 0% to 5% is charged for granting a mortgage. Importantly, the commission can be credited.

Terms and costs of a mortgage.

Terms and costs of a mortgage.

The amount of commission for early repayment of the loan depends on the year in which we want to repay the liability. In the first one, early repayment will cost us 5%, in the second 4%, in the third 3%, in the fourth 2%, in the fifth 1%, and we will not pay anything from the sixth. The terms of early repayment of the mortgage can be negotiated with the bank. We will pay 1.5% for currency conversion into PLN and foreign currencies. The valuation of the property by the bank costs nothing if the customer does not receive a loan. If we renovate an apartment, its value increases. When insuring a low own contribution, we must take into account that the bank will increase the margin by 0.5%. Until the mortgage is entered in the land and mortgage register, we will have to pay bridging insurance, which will increase the margin by another 3.45%. Life insurance is not mandatory, but if the customer chooses it, the premium is a one-off premium and costs 3% of the loan for two years. The bank allows you to take advantage of a number of additional insurances that are not mandatory. Banks accepts various sources of income. These are employment contracts, work and specific contracts, rental income as well as income from business activities and income from abroad. The bank participates in the family on its own program, thanks to which you can refinance a loan under this program.

Customers can apply for a mortgage before marriage.

Customers can apply for a mortgage before marriage.

In the case of consolidation, a mortgage can account for up to 100% of the value of the property. For other purposes of taking out a mortgage, the loan amount is up to 70% of the property value. The bank sets the margin individually for a specific client and can range from 3% to even 15%. The biggest advantage of a mortgage is the maximum loan period, which can be up to fifty years. The borrower may be up to 80 years old. However, the biggest disadvantage of this offer is the very high commission and the bank’s margin. Credit insurance is also expensive. Banks does not provide the option of using credit holidays, nor is it possible to buy a promissory note. Instead, you can apply for a loan without a contract based on a statement. Customers also have the option of securing on the property a third party who is called the collateral provider. The income of insurance donors is not verified, but the bank will check such a person in the BIK and BIG database. Such a person must agree to be checked in these databases.

For whom a loan for an apartment?

It is well known that mortgage loans granted without an own down payment were withdrawn at the beginning of 2014. The reason was Recommendation S issued by the Polish Financial Supervision Authority, according to which banks were obliged to impose higher conditions on borrowers in order to reduce credit risk.

However, it should be taken into account that a mortgage is a liability for the next few decades. In addition, the loan comes with such fees as interest, commissions, and insurance.


In order to make it easier for young people to start a new life

apartment loan

The “Youth Apartment” program was created. It is a form of co-financing for own contribution. The basic condition is the appropriate age of people applying for funding and it is up to 35 years old (the age is important). Participation in the program is envisaged for both:

  • lonely people
  • in informal relationships and
  • marriages.

A person applying for such funding may not be a co-owner or owner of an apartment. The subsidy from this program is granted for the purchase of a flat or house from the primary or even secondary market.

Own contribution will be financed when the mortgage is concluded in the Polish currency and its equivalent amounts to at least 50% of the price of the flat. A mortgage should be taken for at least 15 years.

It is estimated that a young family with an income of 5,000 USD net can expect a loan of around 450,000 zł. Meanwhile, the debt would be for 30 years. However, to receive the aforementioned amount, the PFSA stipulated that the own contribution should amount to $ 45 thousand dollars


The own contribution is to make the mortgage loan safer

The own contribution is to make the <a href=mortgage loan safer” />

In addition, it will make the installment lower and easier to pay. Of course, when looking for the best loan offer, it is worth asking at various banks, because the minimum own contribution for a housing loan can be from 5 to 20%. Banks offer mortgage loans with own deposits (often higher than those specified in the PFSA recommendation). However, for banks the most important is creditworthiness.

In the case of the “Apartment for the Young” program, subsidies of various amounts are foreseen, which is influenced by specific conditions. The program provides an own contribution to the loan, which ranges from 10 to 15 percent depending on the size of the family. It should be remembered that the application for support of own contribution together with the loan application should be directed to the banks that have signed the agreement with Goodpocket Bank.

Of course, there are ways to get a loan, such as having an own investment, the customer asks for a loan after construction. The second option is to activate part of the amount of the mortgage at the initial stage, and until the rest is paid, it regulates interest only on part of the amount launched.


There are many ways to get the amount you need, such as:

There are many ways to get the amount you need, such as:

  • company loan from the company’s cash register,
  • cash loan from the bank for own contribution.

As a result, the customer first applies for a cash loan, which will be his own contribution, and then signs a mortgage contract.

The advantages of the MdM program include the possibility of buying real estate from the primary as well as the secondary market. Everyone interested can easily calculate the amount of their payment. It is worth remembering that the latest payment deadline is Q3 2018. Participation in the program is also provided for people who plan to build a single-family house in the economic system, and the co-financing takes the form of a refund of VAT on building materials.


Do you want a loan? Take care of rich Facebook friends

Not only employers and recruiters, but also banks are starting to use Facebook as a work tool. Soon, the lender will be able to check whether our facebook frends are reliable debtors and on this basis assess our borrowing capacity.


For the bank you are only a number

credit loan

The bank sends an e-mail and e-mail address by name? Is he preparing you for “special offers”? Offers new services “only for you”? If you think that you really are a flesh, friend and regular customer for the lender, then you are wrong. Our whole life, work, school and family is just a set of numbers and data that allow us to assess our credibility.

The mythical 15 minutes for granting a loan spent with a nice lady in a banking branch is in practice a fight with a soulless machine that, by grinding our data and counting on their basis algorithms, issues a judgment based on the IT system “zero-one”. As it turns out, the equation will soon be joined by … the assessment of our Facebook friends.


A poor friend? Say goodbye to the loan

A poor friend? Say goodbye to the loan

If you do not have a solid credit history, your chances of favorable interest rates, and sometimes of credit, are very limited. When the history of BIK is modest, the bank will stand on its head to find a factor in assessing whether you deserve cash for new furniture. For this purpose, even our Facebook friend list can be useful – no matter if you recently saw Janell and Franz in junior high school. On August 4, the US statistical office granted Facebook a patent enabling banks to automatically recognize information on the solvency of friends of a social network user.


“Who do you agree to become like this”

"Who do you agree to become like this"

In practice, this may mean that a bank using such a service offered by Facebook will be able to reject our credit application on the basis of a low rating of friends. uBorrow loan company is already using a similar solution, although without the official Facebook service. The computer analyzes the network of contacts and assesses creditworthiness on the basis of e.g. the frequency of contacts. Close acquaintance with avoiding paying the installment for a TV set can seriously limit our chances for an apartment or a new car.

Polish borrowers can still sleep peacefully, at least on Facebook. For now, the system will be checked in the United States and in situations where there will not be many other verification options. The system, however, already arouses enormous controversy throughout Europe and for a reason recalls the worst. Who knows if in the future the risk assessment bank will start checking who we meet, what we eat and whether we sometimes think badly about the institution that is supposed to lend us money.


Family loan and legal issues

We can borrow money in many ways. We can use the services of banks or parabanks, but some people decide to borrow money from someone in the family. In such a situation, are we obliged to submit a loan somewhere?

Loans are a convenient way to improve your financial condition, but we must always remember that we have to pay back any amount. Many people decide to get a loan from a family member, to be exempt from civil law transactions we have to meet several conditions.

Family loan

Family loan

A family loan can be due to many different reasons. Some people did not have creditworthiness, others were simply more convenient to enter into a contract with someone in the family. However, few people still know that tax on civil law transactions should be paid on some loan agreements. The obligation to settle the tax lies with the person who took out the loan – ABC is a tax on civil law transactions, in the case of family loans it depends primarily on the relationship and the amount. So when are we exempt from paying the tax liability and when do we have to pay it absolutely?

Tax and family loan

Tax and family loan

A family loan is a convenient and more comfortable solution for most people, but you don’t have to pay tax to the tax office for some contracts. Persons from tax group 1 are exempt from this obligation and include: spouse, ascendants (parents, grandparents), descendants (children, grandchildren), daughter-in-law, son-in-law, siblings, mother-in-law, stepmother, stepfather, daughter-in-law and son-in-law. In addition, the amount borrowed cannot exceed USD 9,637. When we meet the above conditions, we do not only have to pay ABC, but we also have no obligation to submit such a loan to the tax office.

The tax exemption also applies to people who have borrowed more than USD 9,637 from their immediate family, i.e. according to the law they are spouses, ascendants, descendants, siblings, stepchildren, stepmother and stepfather. The borrower is obliged to report the conclusion of the contract (form ABC-3) at the relevant tax office within 14 days of its signing.

Loan will be taxed at a rate of 2%


In addition, he must provide proof that will confirm the transaction. If the borrower fails to comply with the above formalities, the loan will be taxed at a rate of 2%. In addition, if it is not reported to the tax office, a person taking credit may be charged a penalty of 20% of the amount borrowed.

Unfortunately, the extended family who intends to borrow over USD 9637 cannot count on being released from ABC. In this case, the borrower is obliged to submit the loan to the tax office and to settle the tax due.

A family loan is a very good solution, but the borrower should always check carefully whether he / she will get ABC exemption. The closest family members are in the best position and they are exempt from tax in any case.

Renovation loan – which one to choose?

Are you planning a holiday renovation? Painting, new furniture, kitchen tiles, or a renovated bathroom? This can take up several or even several thousand zlotys. What loan is worth taking for a renovation so as not to pay it back for the next renovation?

Renovation loan in two cases

Renovation loan in two cases

Renovation of an apartment or house can be financed in at least two ways. The first is a cash loan without any formalities or additional collateral. At the moment, such loans can have a value of up to PLN 200,000, which should satisfy the renovation aspirations of even the more demanding ones. Another solution is a mortgage, i.e. one that is secured by a house or flat. Such a loan may have a smaller installment than a cash loan, but granting a mortgage requires many additional formalities.

You know best what you want to change in your home. Try to pre-determine which order you can finance yourself and what you will buy for the loan. Perhaps the amount of credit can be estimated in such a way so that it does not constitute too much burden.

Cheap loan for small renovation

Cheap loan for small renovation

In the event that we are planning a small renovation, which will consume from several to several thousand zlotys, in this situation the ideal solution will be a cash loan. A cash loan is the “fastest loan” because we often get the decision on obtaining it within a few hours. Banks usually require a minimum of formalities, because proof and confirmation of income – salary or retirement often suffice.

Current cash loan promotions give us the opportunity to take out a cheaper loan if we meet the additional conditions. These are not extremely difficult requirements to fulfill, so it is worth taking advantage of such an opportunity. By creating an account in the bank in which we are interested in credit, we can often receive the lowest interest rate in thanks, and by inviting a close person to a loan, we can also take advantage of the interest rate promotion and we will obtain a higher loan amount.

What to look for when choosing such a loan?

  • For promotions for new / regular customers
  • On the interest rate (also promotional)
  • On the speed of your credit decision
  • On the possibility of taking advantage of credit holidays

A major renovation is a bigger loan

A major renovation is a bigger loan

Renovation of a house or apartment, which requires a significant amount of money, can also be financed with a mortgage. The bank establishes collateral for such a loan on our property, which means that this loan may have a higher amount than a traditional cash loan. The amount borrowed is determined by the amount borrowed and the value of the collateral.

However, the mortgage loan is more complicated. In her case, we do not have to prepare an estimate or settle the work performed, as is the case with a mortgage, but because the collateral is also a mortgage, the bank will require a real estate appraisal.

The mortgage loan, unlike the mortgage loan, is granted for any purpose, so we will finance refurbishment safely from these funds. In the case of a loan secured by a mortgage, a longer repayment period is tempting – we can pay back such a loan for up to 25-30 years.

Loans to housewives without payroll: what guarantees?

Everyday life is always full of unexpected events and sudden expenses can lead to the need to ask for a small loan. However, those who take care of running the house often do not have a permanent job and a paycheck and, in many cases, they are women who look after the home and take care of household chores: in these cases, like do loans to housewives work ? Do we need special guarantees? What amounts can be financed? In this article we will try to provide answers to all your questions.

To obtain loans to housewives it is often necessary to provide special guarantees , which reassure the bank about the ability to repay the loan. Whenever a person requests a sum on loan from a bank or other financial company, he will always be asked to present a guarantee: this is used by the bank to be able to disburse the financing knowing that it can claim back in some way in the event of insolvency of the customer. For workers without income, such as housewives, this aspect becomes even more important.

Usually the most requested guarantee is that of a pay slip


For this reason it is believed that employees with permanent contracts are the category that can more easily access the provision of a loan: they can in fact present a pay slip that certifies regular income and therefore their ability to repay the debt . Temporary workers and self-employed workers already find some difficulties. People who do not have regular contracts or who do not have a pay slip, like housewives, find themselves in a very complex situation, because they cannot prove a stable income.

The loans to housewives thus fully fall within the “loans without payroll”, ie that particular form of loan that does not include the presentation of a pay slip as a guarantee. Many lenders, even online, today provide this kind of banking service. However, it must be emphasized right from the start that for housewives it is very difficult to obtain loans that exceed a figure of around 2,000 – 3,000 euros .

So what are the most reliable guarantees for a housewife? We can indicate at least two

housewife loan,money,cash

First, it is always possible to request a third party to guarantee the loan. This means that the guarantor’s signature will reassure the bank, which could more easily pay the requested sum. Also in this case, the form of the guarantor’s employment contract is very important: a person with a permanent contract will be much more reliable for the bank.

Another possibility to get loans to housewives opens up for people who are homeowners. In this case, especially if the loan is aimed at the maintenance or renovation costs of the same building, it is possible to place a mortgage on the home and thus facilitate the loan. It will be precisely the building on which you intend to work to constitute the guarantee.

Loans 15,000 euros: ask for a loan of 15,000 euros!

Loans up to 15,000 euros are medium-sized loans, which are rather in demand, which many banks and financial companies disburse without particular difficulty and are rather short times.

These are personal loans, therefore they should not be motivated when they are requested, because they do not finance the purchase of goods and services.

Generally speaking, it is a question of the liquidity required by those who have to face expenses that are starting to be demanding to be faced with the only savings and such that they cannot be paid with ordinary revenues.

Think of a wedding, a renovation of a building, etc.

On average, the reimbursement could be around five years, since the figure would not be so high as to present difficulties in returning it. The installments are generally monthly and provide for the payment of an interest, as well as the other costs that affect any type of financing (preliminary fees, practice opening, sending installments, etc.).

However, unlike a small loan, already on a loan of around 15,000 euros, the other costs start to be spread over a higher amount and, therefore, the APR starts to be no longer so distant from the TAN, as happens for the loans of a few thousand euros.

Obviously, we are referring to the generic category of personal loans

personal loans

Because there are different concrete solutions, such as the assignment of the fifth, the loan delegation, etc.

To obtain a loan of up to 15,000 euros, you must have an income from work, self-employed or employed or receive a pension.
Therefore, it is essential to show the pay slip, if you are a permanent employee, the single model for freelancers and self-employed workers and the pension slip, for pensioners.

It cannot be ruled out that additional guarantees may be required, such as assets (mortgage on real estate) and / or signature (guarantee). But this would happen if the income was considered an insufficient requirement, in relation to the requested sum.
Also this type of financing can be found online and be included in the category of online loans, as well as fast loans or even small loans, even if the amount starts to be not so low.