Quick loan – what should you know about it?

Quick loan – what should you know about it? Quick loan – what is the reason for the short loan term? Who is the quick loan for? Great offers for quick loans Fast loans for free – conditions for granting them

Quick loans from the hands and allow you to repair your household budget in a short time. It is worth knowing where and how to obtain such loans on the most favorable terms.

Quick loan – what should you know about it?

Quick loan - what should you know about it?

The offer of loan companies operating in the non-banking segment is already well established on the Polish financial market. There is talk now slowly of the dominance of low-value cash loans in loan companies over cash loans in banks.

There is no doubt that quick loans that can be used in non-bank companies have many advantages. It’s the fastest way to raise extra money for any credit purpose, without leaving your home.

The entire process of applying for express loans can be done online. It is a convenient option for those who would like to raise additional funds at any time of the day or night.

One should know that online loans have simplified rules for applying for financing for clients. Therefore, you do not need to submit a stack of documents and certificates with your loan application.

Some loan companies declare that the loan will immediately go to the borrower’s account. A quick loan in 15 minutes is the most available, but it depends largely on how quickly the customer verifies his identity.

Quick loan – what is the reason for the short loan term?

Quick loan - what is the reason for the short loan term?

The high availability of fast loans over the internet means that many people can take advantage of them. The biggest advantage that a lot of borrowers pay attention to is the speed with which money can be withdrawn to the customer’s bank account. How is it possible that a quick loan for everyone goes to the borrower’s account on the same day he applied for the loan from the loan company?

Well, everything is related to the automated process of verification and evaluation of the loan application. Fast loans are mainly available on the internet for customers. All you have to do is submit a loan application and the employees of the loan company or the programming algorithm created for this purpose will check whether the client can be granted such an obligation.

Unlike banks, loan companies are not required to calculate the creditworthiness of potential customers or to control their data in the Credit Information Bureau.

The credit process may extend customer credibility checks in publicly available databases of Economic Information Bureaus, but it will not last too long. Banks have obligations arising from the recommendations of the Polish Financial Supervision Authority, while loan companies are not covered by them.

Who is the quick loan for?

Who is the quick loan for?

An instant loan online is the best and fastest way for consumers to get more money. Lenders, i.e. non-bank loan companies, offer quick loans that can be used in any way. The offer is directed to people who meet certain requirements, such as:

  • age – at least 18 years or more – some lenders only allow the possibility of granting a loan immediately to persons aged 21-23;
  • Polish nationality;
  • place of residence in the Republic of Poland;
  • no negative entries in Credit Checker, although not all loan companies reach for data from such offices when verifying the borrower’s creditworthiness;
  • having an account in a Polish bank, registered in your own name.

The customer must submit a complete loan application so that a quick instant loan can be finally granted. Some lenders require customers to declare their monthly income and expenses incurred at the same time to be able to calculate their estimated creditworthiness. On this basis, the lender determines whether the customer can afford the loan.

Great offers for quick loans

Great offers for quick loans

A quick loan for everyone is available in numerous loan companies operating on the Polish market. This creates a problem for potential customers because they do not know which offer is actually worth using.

When comparing proposals for quick non-bank loans, you must take into account not only their interest rate but all other costs. Loan companies may charge a commission for joining the committee, as well as other fees. Therefore, it can be concluded that a quick loan is indeed beneficial to the customer if its APRC is lower than for the other loan offers obtained by him.

APRC is the annual actual interest rate that reflects the total level of borrowing costs. The lower it is, the better for the borrower.

When comparing, it is also worth paying attention to the total cost of the loan or the total amount to be repaid. The comparison will make sense if we combine only such quick loans that have the same amount and repayment period.

Fast loans for free – conditions for granting them

In the search for the best offer for quick loans immediately we will come across free loans. In their case, a quick loan for 60 days can be granted completely free of charge. This is a very good offer, but only available to new clients of selected loan companies. A free express loan will be granted to a customer who has never borrowed in a given non-bank company before.

In addition, a quick instant loan will remain free of charge and the borrower will reimburse the loan company exactly the amount it has obtained if it is not late with paying it within the period specified in the loan agreement. Otherwise, the lender will be entitled to charge additional fees and commissions, including interest.

A quick cash loan is available at numerous online loan companies. Just submit a loan application and meet the conditions set by the lender to be able to reach even for a free instant loan.

Account credit limit – what is it and how does it work?

Before we move on to the more complex issue and explain how the credit limit works, we will first try to answer the basic question: what is the credit limit?

Simply put, it is an additional amount of funds available on your account that you can use if needed. The mere fact of granting a credit limit does not mean that you have to use it every month or use it immediately. You can use it according to your needs because these funds are available directly on your account in the form of debt.

How to get the limit?

How to get the limit?

Any adult who is a customer of a given bank (has an account or is a co-owner), has a regular income and lives on Polish territory can apply for the limit. You and the bank decide how high the personal account limit will be. This amount is usually calculated on the basis of your creditworthiness – first of all, regular inflows to your account are taken into account.

The limit may also be affected by additional factors such as seniority of the account or your possession of other financial products of this institution.

You can apply for a credit limit at a branch of a specific bank, or (in some cases) via electronic banking. If you do not have a limit yet, the bank usually prepares an offer for you, which is available online with a few clicks.

Credit limit – costs and commissions

In fact, you can apply for a credit limit on your personal account at any bank. This product is so popular that banks do not regulate what the customer will spend these funds on, as everyone has the right to use them at their own discretion. By default, the funds available within the credit limit should always be “on hand”. However, this privilege can cost a lot.

Account credit limit – fees

Account credit limit - fees

Fortunately, the mere possession of a credit limit does not involve additional fees. The bank only charges them when you start using it and only from the part you used. If we assume that your limit is USD 2,000 and you have used half of it, the commission will be calculated only on the USD 1,000 used.

The account limit is fortunately not as expensive as it may seem. It is also often more profitable than a cash loan. The interest rate on the limit is usually around 12 – 16%, while the APRC of cash loans is often 18%, and there are also more expensive offers.

The credit limit on personal and company accounts

An account with a credit limit is really everyday life among financial products. If you do not have a personal account yet or have not used the credit limit, you should think about which bank has prepared the best promotion in this area.

Banks wanting to attract new customers often offer them a limited account. This means that as a new customer of the bank and not using any financial products, you immediately receive a kind of trust loan and a credit limit is assigned to your account. Such an offer has been prepared.

The offers of other banks are also popular, where within the credit limit we can be given a really large sum. The Good Credit Bank has prepared a proposition for its clients: the Good Credit credit limit – up to USD 150,000 in additional cash.

If you are interested in large limits, you can also check the Fine Bank credit limit. The bank grants up to USD 50,000 limit, and currently, the “Welcome offer” promotion is underway, thanks to which you can use an individual credit line without a commission for granting the limit.

If we look deeper, we can see that E-Money has just prepared a spring promotion E-Money credit limit – up to 90 days without interest (APR 9.99%). In addition, he provided customers with a revolving loan calculator so that they can easily and quickly check all loan costs.

And what does the limit case look like for business accounts? It will be difficult to find a company account with a credit limit for starters, but it is not difficult to find a revolving loan offer that works in company accounts on the financial services market.

An example would be E-Money, which grants companies a limit from day 1, provided that the creditworthiness is assessed positively. Under this limit, you can get up to USD 150,000.

Credit limit – summary

Credit limit - summary

Credit limits are a good option for people who want to have a security cushion in case of unplanned expenses. When time plays a major role, you will not need to complete documents, apply for a loan, and wait for a decision.

The account limit can be dangerous, however, if at some point you overdo the expenses and the total credit limits exceed your monthly inflows. This will mean that you are unable to pay back the used limit on an ongoing basis, and the last option will be a consolidation loan.

Remember that if you belong to people who spend money very quickly and who have on their account, it is better to give up the limit at all. Late repayments, apart from additional costs, also generate additional problems.

Failure to meet the repayment deadline will definitely be recorded in the Credit Information Bureau and will have a direct impact on your creditworthiness.

Therefore, if you really need additional funds and you do not trust yourself in this matter, it is better to use a one-time cash loan instead of a revolving limit.

The interest rate on the loans will change?

Only persons dealing with civil law know that from the beginning of 2016 new regulations regarding statutory interest, statutory interest for delay, maximum interest and maximum interest for approx. We are talking about interest which is calculated as remuneration for the use of someone else’s money or Check penalty points online.

Penalty for late payment of obligations

Penalty for late payment of obligations

Despite the introduction of new regulations on at the beginning of January 2016, the maximum interest rate on liabilities did not increase and still amounts to 10.00% per annum.

Changes in loan conditions are more visible when the VVBC reference rate is adjusted for the first time (currently: 1 , 50%.) Therefore, it is worth carefully presenting the new rules for calculating statutory and maximum interest.

For now, the January changes in regulations are beneficial for debtors

credit money loan cash

At the beginning it is worth mentioning that the principles set out in the Civil Code apply only to the interest rates on various obligations (e.g. loans and borrowings), and not to the total remuneration which the bank or lending company charges funds for making them available.

In the case of loans and advances to non-entrepreneurs (consumers), additional restrictions on non-interest costs have been in place since March 2016. They also relate to a fee for extending the repayment deadline during the first 120 days of transferring funds.

When it comes to changes in interest regulations, they seem to be quite beneficial for debtors. Compared to the end of December 2015, the maximum contractual interest rate did not change (10.00% per annum). It should also be noted that statutory interest and statutory interest for delay fell (from 8.00% / year to 5.00% / year and 7.00% / year).

Only a change in the maximum interest for delay will not necessarily please the debtors. Until January 1, 2016, the amount of such interest was not limited by the Civil Code, but courts often recognized that the standard maximum interest rate should apply (i.e. up to 10.00 %/year). After the January changes, the maximum amount of interest on delay was specifically set as 200% of statutory interest on delay (currently: 14.00% per annum).

The relationship between the “old” and the new interest limits will obviously change when the Monetary Policy Council announces an adjustment to the VVBC reference rate. It should be noted that the aforementioned rate now directly affects the level of statutory interest and statutory interest for delay.

Earlier, these rates were determined on the basis of the regulation, and the current amount of interest rates was only one of the criteria taken into account by the Council of Ministers.

Thanks to the new solution, economic turnover is more reliable and stable, because immediately after the change in the VVBC reference rate, a new level of statutory interest can be calculated (see the table below). It is worth mentioning that from January 1, 2016, new rules for determining interest rates in transactions relating to enterprises apply. The effect of this change is the setting of interest for delay charged between companies at 9.50% (VVBC reference rate + 8.00 percentage points).

Changes in interest rates on liabilities (from January 1, 2016)

Type of interest The amount and rules for calculating interest from January 1, 2016 (as at July 31, 2016) The amount and rules for calculating interest until January 1, 2016.
Statutory interest
(calculated when the parties did not specify debt interest in the contract)
VVBC reference rate + 3.50 percentage point
(current rate: 5.00% / year)
determined by ordinance of the Council of Ministers
(last rate: 8.00% / year)
Maximum interest
(highest possible interest rate on liabilities)
200% of statutory interest
(current rate: 10.00% / year)
400% of the VVBC lombard rate
(last rate: 10.00% / year)
Statutory interest for delay
(calculated when the parties did not specify interest for delay in the contract)
VVBC reference rate + 5.50 percentage point
(current rate: 7.00% / year)
determined by ordinance of the Council of Ministers
(last rate: 8.00% / year)
Maximum interest for delay
(highest possible interest rate on arrears)
200% of statutory interest for delay
(current rate: 14.00% / year)
equal to maximum interest
(last rate: 10.00% / year)

 

The old regulations still apply to old debts …

credit money loan cash

The introduction of changes in liabilities interest rate required the establishment of certain transitional standards. They are valid for persons with debt before 2016.

Therefore, it is worth explaining that for interest due for the period before 1 January 2016, the following applies: provisions of the Civil Code in the previous wording.