Collateral and loans – Where to apply

When we apply for a loan at a bank, and after analyzing our creditworthiness, it turns out that it is too low to incur liability, then the bank is willing to pay us funds as long as we provide adequate security.

Timely repayment of the loan

Loans without pledges or guarantees

In such situations, the financial institution most often conditions the issuing of a positive decision on whether we can find a guarantor. It is a person who will commit that in a situation when we have problems with timely repayment of the loan, he will take on the obligation to fulfill the contract. It can be a family member, friend, etc.

The surety can also take the form of a promissory note, e.g. a blank promissory note. In this way, the bank protects its interests, and specifically reduces the risk that the money entrusted to us, due to financial problems that met us during the repayment period, will come back to it.

Of course, plus statutory interest, commission, insurance and other fees. A pledge is another form of security for the repayment of the financial liability. It is established e.g. on real estate, a car.

Loans without pledges or guarantees

Loans without pledges or guarantees

In the case of non-banking companies, no practices are used to secure the loan by pledging or obtaining a surety. At least not in those that operate in accordance with the law, or more simply they are not parabanks or pawnshops.

The inability to set collateral in the event of taking out a loan results from the fact that loan companies are not covered by the Banking Law and operate without the permission of the Polish Financial Supervision Authority. As a result, they cannot accumulate deposits or make the payment of a loan conditional on acquiring a tyrant or establishing a pledge on movable property.

An income certificate will be useful

business loan

Non-banking institutions obtain information about the client from him (the data entered in the online loan application), and then they can verify it in several ways. One of them is a statement of income or a statement of earnings (the client provides the number of earnings, and the lender confirms this information, e.g. by calling the requesting employer).

Another form of confirmation that the customer is able to repay the installment loan on time is a personal account statement. In addition, the non-banking company checks the potential borrower in the registers of economic information bureaus in terms of how it deals with the settlement of financial liabilities to banks, other financial institutions or commercial and service entities.

With the entry into force of the amendment to the Act on financial market supervision, the Banking Act and some other acts, the loan industry will also be subject to the need to exchange information about its clients with banks.

Loan trends for the first half of 2020

Saving is not easy. Everyone who wants to set aside a small sum to implement smaller or larger plans knows this. Bored Bank decided to conduct the “Generation about finances” study, according to which only 25% of respondents do not put off.

Although we try to save, it is not enough for all needs. That’s why we decide on loans. As BIK shows, we are signing contracts all the time, but has their number increased or decreased? 

Higher consumer loans

Higher consumer loans

Let’s start with what consumer loans are. These are loans granted for current needs. It can be buying a car, refurbishing an apartment or a dream vacation abroad. The method of repayment is precisely stipulated in the contract, and the collateral is the borrower’s income or the guarantee of the tyrant.

The amount of the loan depends on the creditworthiness of the particular customer, so it’s worth paying off all liabilities earlier, and we will definitely get a larger amount. What was the situation with consumer loans in the first half of 2020? According to BIK, the number of loans granted decreased, but their value increased.

This means that people were more likely to take larger sums. We’ll take a closer look at the numerical values ​​to see how it really looks. The first half is 3.5 million contracts concluded. It is 2.2% less than in the first half of 2015. However, as indicated just now, their value is higher by 1.2%.

This trend agreed with the predictions that BIK was talking about. The increase in the value of loans may be affected by the lowest unemployment in 25 years and a monthly salary of up to 2.5%. This is probably due to the payment of money from the 500+ program and is an undeniable reason for the increase in the creditworthiness of many families, which could have afforded such a loan. It is worth noting that the largest decrease in the number of loans was recorded in south-eastern Poland.

The higher number and higher value of housing loans

home loan

Housing loans, as the name suggests, are loans for the purchase of a flat or house construction. Money must, therefore, be allocated to the specific purpose that the client chooses. With a home loan, you must secure it with a mortgage. The loan period can be up to 40 years because the amount collected is large and cannot be repaid within a few months. There is always an option of early repayment, however, usually associated with additional expenditure.

It is worth asking about it before signing the contract to know what costs you will have to take into account. So what was the interest in housing loans in the first half of 2020? 4.1% more loans granted by banks and credit unions were recorded. Their value also increased by 5.8%. The main revival was observed in western Poland.

However, this situation began to weaken already in June and July, which may indicate a tightening of lending policy. The following months will show whether this weakening will persist or whether the situation will change and the number of loans granted will increase again.

Fewer credit cards

credit score

According to the BIK report, fewer credit cards were issued. The difference is up to 9% – does this mean that Poles do not want to use them? Let’s first explain how they work. Credit cards are one of the payment instruments, characterized by the so-called credit limit.

The customer using the card has a certain limit to use, which he then has to pay back. A characteristic term for credit cards is the billing cycle. At the end of the cycle, you receive a list of operations made and the amount to be paid, along with the deadline by which you must do so. Let us return to the question we just asked.

Poles still use cards, as evidenced by the increase in debt on these payment instruments, which increased by 4% compared to the previous year. Although cards were issued less, definitely higher limits are set.

How to search for good offers?

Finding good deals may not be easy for everyone. How do you find favorable offers? Of course, it’s best to follow the websites of the banking institutions we are interested in.

However, if we do not have time for this, we can take advantage of an equally good offer, which are rankings of bank offers. We will receive a list of the most attractive options along with the opinions of customers who have already used the services of individual bank branches. “Still, remember not to sign the contract blindly. Reading the documents carefully will protect us from unnecessary financial problems.

Let’s also make sure that we are able to save the required amount for the monthly installment, and then we will be able to confidently sign the contract, “comments Tymon, an expert at Jabber. Smart financial decisions are the best we can do for your budget. Otherwise, it may turn out that our finances are in a much worse condition than we thought.

 Current trends show that bank loans are a product constantly sought in the market. It is worth following the latest trends and looking at current offers so that whenever necessary, demonstrate knowledge of the industry and choose the best proposal that suits our needs.

Beware of false loans at broken rates

The bad reputation of bankers, some do not hesitate to make their honey. Example with two sites presenting themselves as credit intermediaries. It’s very simple. With them, and despite our consequent loan request (from 100,000 to 150,000 dollars over the longest possible period), no need for personal contribution or minimum income ‚! As for the documents to be produced, apart from an identity document, the RIB, a payslip and a certificate of address, they are very succinct. It is more contrasted with regard to the rates ‚: if MoneyHold Express promised us 2% over thirty years, that is 0.5 to 1 point less than the rates in force, Rapidlend Credit hit hard by posting 3% over ten years, double the market . But the advisor quickly agreed to negotiate downward.

 

Loan scams

Loan scams

Even if we did not go further, needless to say, we would never have seen the color of this silver. “The scam then consists in demanding from the borrower the payment of a sum, in settlement of various costs. The transfer made, the fraudster does not give any more news, or claims money again under cover of other reasons, such as the release of the loan or the lodging of a guarantee “, summarizes Carol Hassan, chief within the direction of the control of commercial practices at the ACPR. Maneuver attempted by Steffy Morea, our contact at MoneyHold Express ‚:“ Your file completed, I will contact the bank and you will have to reimburse me for the necessary costs. ”Even if, despite our multiple reminders, he never gave the amount… Note‚: the same techniques are used by sites dangling savings books online,

“A rate below the market often indicates a fraudulent loan” warns Carol Hassan, head of the complaints department of the ACPR’s commercial practices control department. -.

 

What the law says

loan fraud

Whoever the interlocutor is, no amount of money can be claimed before the current release of a loan. Anyone presenting themselves as a broker must obtain an IOBSP number from Orias, the register of intermediaries in banking operations. And have a fundraising mandate signed. “Before finalizing the file, a document with the duration of the credit, the monthly payment, the rate as well as a depreciation table must be communicated”, specifies Sandra Alloin, from the broker Vansleigh Financing. If it is a financial institution proposing to lend you or receive deposits on a passbook, it must be registered in the Regafi register.