Cash loans are a frequent choice of Poles when it comes to emergency funding of the household budget or when we want to go on vacation or buy new equipment. Depending on the current offer, we can come across really attractive conditions for obtaining a loan. There is quite a lot of competition on the market, thanks to which banks reduce their earnings as much as possible to get another customer. With such a wealth of offers, there is only one question: “In which bank will the loan be the cheapest?” After all, every bank touts its offer as the cheapest. Advertisements, however, have the fact that they rarely convey 100% of the truth and all information is better to verify yourself. We will try to help everyone in choosing the most optimal solution.
What is credit and what are its types?
By cash loan, we mean a bank making a given sum of money available to us. Its amount and repayment terms are specified in the loan agreement which we conclude with the bank in writing. Such an agreement should include all important issues regarding the rules for repayment of the loan or withdrawal from the agreement. The loan is granted on the basis of creditworthiness assessment. It is calculated after we provide the source and amount of earnings. A banking analyst, using the appropriate algorithm, will assess whether we are able to repay the amount requested and issue a positive or negative decision or propose a smaller loan amount. Roughly loans can be divided into several types: mortgage, car and cash loans, also called consumer loans. In the case of the latter, we do not need to indicate the purpose for which we intend to allocate the cash obtained from the loan.
How much does the loan cost
Loans have recently been a relatively cheap financial product. The total cost of credit on an annual basis is about 20%. This is an average value because of course we will find both cheaper and more expensive offers. In general, the APRC for cash loans is between 10 and 40%, although this upper limit is rather rare. Such high values are rather reserved for various payday loans and loans. Cash loans for new customers are APRC at a level of up to 10% and most often resignation from charging commission for granting a loan. We can also come across such promotional terms using the services of a bank where we have had a personal account used to transfer remuneration from a workplace for many years. With such a history in the bank, it is possible that we will not even have to submit any certificates and we will not be checked at the Credit Information Bureau. It all depends on the current offer of the bank.
In what bank the loan? Credit comparison
When we know what the cost of credit will be acceptable to us, we should look around for a specific offer. Information on the total cost of credit (APRC) is usually not very prominent and is recorded in small print in advertising material. Therefore, various loan rankings will be very helpful in searching for the loan with the lowest APRC. Loan brokers willingly place such rankings on their own pages to help users find the most attractive offer. Such rankings are most often updated once a month, which is why we practically always have access to the most current data on bank offers. By using this type of website we will be informed about all costs associated with a given loan and the amount of any installment.
Launching a loan
To obtain a loan, we must first of all fill out the application on the bank’s website and demonstrate appropriate creditworthiness and history in BIK. For creditworthiness, it is also good to show the lowest possible expenses. If we meet all these conditions and the bank issues a positive decision, we will have to accept the contract. It is worth to read it carefully, although it is not the most pleasant activities. The agreement contains all information about the loan, including its costs. In addition to the fact that we accept the contract in electronic form, it will also be delivered to us in writing by courier or by post. The Banking Act imposes such an obligation on banks.
Can I withdraw from the loan?
The loan agreement will also contain information on the principles on which we can cancel the loan. We have the right to do so within 14 days of accepting the contract. If we meet this deadline, we will not incur any additional costs. All you have to do is provide the bank with your resignation in writing and then return the entire amount borrowed within 30 days. We do not have to give reasons for our decision, we only inform the bank about the situation.