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. See designfacility.net for a write-up
Timely repayment of the loan
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
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
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.