Bank loan

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Finance

Bank credit is a very general term. It is granted by banks on the basis of the provisions of the Banking Law Act. In addition, the activities of banks are also controlled by the Polish Financial Supervision Authority in the form of recommendations. Banks grant loans to both individuals and businesses. In the case of corporate loans, we distinguish between working capital loans, overdrafts and investment loans. In the offer of banks for natural persons we can find: housing loans and consumer loans – cash loans, car loans, student loans, or a loan in a savings and settlement account. The most popular type of credit is undoubtedly cash credit. First of all, its popularity stems from the fact that the funds obtained from the loan can be used for any purpose. Thanks to this, the borrower can finance the renovation of the house, holidays or education of children.
Bank loan – costs
What are the costs of a bank loan? The most important credit costs are interest. They result directly from the interest rate of the loan, which cannot be higher than four times the lombard rate. The loan interest rate may be fixed and variable. The fixed interest rate usually accompanies short-term loans. In such a case, the instalment is also fixed, and once the repayment schedule is adopted, it is valid for the entire duration of the credit agreement. In the case of variable interest rates, the situation is diametrically different. Variable interest rate consists of a fixed part (margin) and a variable part, the amount of which is determined in relation to a specific reference point, which is usually WIBOR, i.e. the interest rate applicable on the interbank market.
Subsequently, the costs of the loan also include fees – commission on granting the loan and a preparatory fee. Insurance may also be an additional cost of the loan. However, you need to consider whether you necessarily want to use this option. The insurance premium will increase the monthly instalment. In the event of your death, inability to work or disability, the insurance company will pay your debt.
RRSO – a quick overview of costs
How to quickly assess the total cost of credit? The Real Annual Interest Rate will help us to do this. This is a ratio that perfectly reflects the relationship between the cost of the loan and the amount you will receive. It is expressed in percentage terms. The method of calculating APR is strictly defined in the Act on Consumer Credit. The method of its calculation is therefore identical in every bank. Therefore, APR constitutes an excellent and reliable tool for comparing credit offers.
Conditions for obtaining a bank loan
Banks base their credit policies on restrictive guidelines contained in the Banking Law Act. In order to obtain a loan from a bank, a number of requirements must be met. First of all, you must be an adult and have an ID card. Then you must present your certificate of employment and earnings to the bank. The situation with entrepreneurs is slightly different. In order to receive a loan, they must present a certificate from the tax office and the Tax Office, and a tax return for the previous year. Of course, in order to have a chance to get a loan, you must first fill in an application form on the basis of which the bank will analyse your creditworthiness. It will take into account mainly our earnings, the number of people we maintain and our credit history at the office. If you have recently failed to pay off other financial obligations on time, you are unlikely to get a loan.
Types of bank loans
Bank loans can be divided into two main groups: loans granted to businesses and loans to individuals. In the first case, we can distinguish mainly investment credit, often being the flywheel of the economy, working capital credit, as well as overdraft credit, which provides liquidity to corporate finance in more difficult periods.
In the case of loans for individuals, we can distinguish between housing loan (most often in the form of mortgage loan) and consumer loan. The latter are divided into car loans, student loans, ROR loans and cash loans.
Resignation from credit
You may withdraw from the credit agreement provided that you submit your withdrawal in writing within 14 days of the date on which the financial obligation was incurred. We do not have to state the reasons for our decision. We may not be required to do so by the Bank. Resignation from the loan after signing the agreement is possible thanks to the provisions of the Act on Consumer Credit. Of course, we must return the entire amount of the loan to the bank. We have 30 days to do so from the date of submission of the statement of withdrawal to the contract. This is a gateway for people who made a decision to take out a loan too hastily and would like to withdraw from it.

Bank loan
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