Types of loans you can apply this time.

On-demand loan

On-demand loan

In the case of an on-demand loan, a bank provides you with a line of credit that you can use variably. The credit line denotes the maximum limit of the capital framework. The repayment takes place monthly. The interest rate is variable. The call loan is an alternative to the overdraft facility.

Annuity loan

Annuity loan

An annuity loan is a repayment loan. The monthly rate is therefore made up of an interest and a repayment part. However, the repayment rate is the same over the entire term. Since the interest portion of the repayment also decreases over time due to the falling remaining loan amount, the repayment portion increases. If the loan amount is repaid in full at the end of the term, this is also referred to as a full repayment loan. Often, however, there remains a residual debt that has to be paid in one go. As a borrower, you usually have the option of follow-up financing.

Home loan

Home loan

Home savings loans are granted in the course of a building society contract. If you would like to save money for a house with a home savings contract, you can initially negotiate an optional home loan that you can use after a certain saving period. The interest is fixed when the building society contract is agreed, so that you can secure cheap interest. The home loan is a repayment loan.

In addition to a home loan, a forward loan is also a way to secure favorable interest rates for a future loan contract. However, the savings phase is omitted here. The forward loan is also used for real estate financing and can be concluded up to 60 months in advance. After this so-called forward period, the loan amount is paid out and the actual contract begins. A distinction is made between fake and real forward loans. In the case of a fake forward loan, the interest rate fixation begins immediately after the agreement, whereas in the real one it only begins with the payment of the loan amount.

Real estate loan

Real estate loan

The real estate loan is a type of loan with a specified purpose. As the name suggests, this is real estate. Due to the collateral for the bank associated with the property, real estate loans have very low interest rates compared to the general interest rate level. Due to the mostly high loan amount, the term of real estate loans is very long, often 20 years or more. Real estate loans are part of real estate or construction finance.

The participatory loan is a long-term loan for companies. Instead of interest, the lender receives shares in the profit or turnover. A smaller interest component is also possible. The contracting parties negotiate the content and are relatively free to design it. Due to this nature, the participatory loan is similar to a silent company, but without the merger into one.

The installment loan is a sub-form of the repayment loan. In contrast to the annuity loan, however, the monthly rate drops here. The repayment portion remains the same, while the interest portion falls. This means that the loan amount can be repaid quickly, but at the beginning the monthly installments are a greater burden than with a decreasing term. Installment loans are therefore mostly used less for real estate, but rather for the financing of motor vehicles or consumer goods.

Repayment loan

Repayment loan

The repayment loan is the generic term for the types of annuity loans and installment loans. In the case of a repayment loan, a loan amount is lent that is repaid over a fixed term using a repayment payment. The monthly installment consists of the repayment and the interest component. The counterpart to the repayment loan is the final loan.

A full repayment loan is an annuity loan in which the loan is repaid in full at the end of the term. The monthly rate remains the same over the entire contract period, but is higher than with a conventional annuity loan. For you as a borrower, the monthly installments for a full repayment loan are higher. However, interest rates are lower because the bank has greater certainty about repayment. This reduces the overall interest burden.

Risk Life Insurance – Security for the building loan

Families use the building loan to finally fulfill their dream of owning a home. What makes financing your own four walls so attractive is currently low interest rates. The advantage: With the standard repayment of one percent, the financial burden can be kept within limits. A building loan not only paves the way to home ownership, it can also become a fiasco.

Where does risk life insurance start here? What advantages does it have, for example, compared to pure residual credit protection?

Building loan: Wrong planning leads to ruin

In general, home finance is the only solution that leads to home ownership in most cases. The problem: the credit framework is complex. Planning errors sometimes only show up after years.

Who as a family at:

  • Borrowing rate fixation
  • Redemption rate or
  • Incidental purchase costs

making wrong decisions puts your financial future at risk. Expensive refinancing, for example, can significantly exceed the budget. But other aspects also become risks. This includes:

  • divorce
  • Unemployment and
  • Illness.

All three aspects affect financial performance. A household is quickly no longer able to finance the loan installment.

Security through life insurance

Security through life insurance

A residual debt insurance should generally protect against all three risks. The problem: The premiums are substantial given the amount of the loan. And whether the benefit actually occurs is not certain. Especially in the context of a divorce, the sale is also in the room.

Risk life insurance is heading in a different direction. The primary concern here is to protect the family in the event that a death disrupts the entire income situation.

If there is no income, the bereaved can quickly stand with their backs to the wall. Thanks to the life insurance, the financing is still covered.

And risk life insurance is often the much cheaper option compared to residual credit insurance – especially since the contract can also be concluded as a tariff for connected lives. Because of this, many experts consider life insurance to be an important safeguard.

In practice, homeowners can insure the property or their surviving dependents with risk life insurance in such a way that the sum insured adapts to the progress of the repayment. Here we speak of life insurance with a falling sum insured.

Self-service loan – check what this offer is!

 

Your financial situation has become complicated and you suddenly need additional funds on your account? The solution may be a self-service loan offered by Provident. Is it worth to opt for this option? How does such a loan work, who can take advantage of it and is it worth it? We answer!

How does a self-service loan work?

A self-service loan is a quick and easy way to raise funds. This is because the whole process of applying for money can go online. In practice, therefore, this offer is no different from other online loans available on the market. A self-service loan is available to people who complete the appropriate form available on the Provident website. It usually doesn’t take more than a dozen or so minutes.

In the form, you must provide your personal data and information about the loan you are interested in: amount borrowed, repayment time and possible ways of securing the liability. This process is very intuitive and you will definitely handle it even if it is your first contact with loan companies.

Provident self-service loan – what conditions must be met?

Provident self-service loan - what conditions must be met?

A self-service loan at Provident is much more available than a cash loan at a bank. However, customers still need to meet certain conditions to borrow money. What requirements does Provident place?

  • completed eighteen years of age,
  • Polish nationality,
  • possession of an ID card to prove identity,
  • demonstration of stable income – for example, a bank account statement from the last few months,
  • having contact details: e-mail address and telephone number,
  • showing a positive credit history,
  • completing the appropriate application on Provident’s website.

Meeting these conditions does not guarantee that you will be granted a self-service loan. However, Provident does not have such high expectations of customers as banks. Therefore, you have a good chance of receiving the funds you are applying for, even if it is not your first active financial commitment.

Who is the self-service loan for?

Who is the self-service loan for?

Provident self-service loan is dedicated to people who want to raise funds quickly and without excessive formalities. It is mainly used by those who do not want to apply for a cash loan because of the long waiting time for consideration of the decision and the need to meet very extensive formal requirements.

Thanks to it, you can receive a quick injection of cash to finance urgent needs, pay off other obligations or an investment. However, you must remember that a loan is only possible when the company positively assesses your creditworthiness.

People with overdue liabilities that are on the debtor’s register will have a problem with obtaining funds. However, if Provident rejects your application, you can try sending it again.

How to apply for a self-service loan?

How to apply for a self-service loan?

The process of applying for a self-service loan is extremely simple and intuitive. It can be done fully online, so it doesn’t take much time. What does step by step look like?

1. Complete the application available on the Provident website

On provident.pl you will find an application to complete, in which you must provide your details, the amount you want to borrow and the period for which you want to make a commitment. After completing the information, you’ll see how much it will cost you to borrow.

2. Accept the offers

If the loan terms suit you, all you have to do is accept the offer with one click. As part of the process, you will immediately create a user account in which you will be able to find out what the loan decision is, and then track the status of the loan repayments.

3. Perform the verification transfer

To confirm your details and willingness to take a loan, you need to make a verification transfer of one zloty to the account specified on your user account. The paid zloty is returned after signing the contract with the loan company.

4. Wait for decision

You don’t have to do anything more than wait for the loan company’s decision. If it is positive, the money will quickly appear in your account.

You do not have to have previous commitments repaid to apply for this loan. You can check the current loan offer in your profile.

What amount can you take out a self-service loan?

What amount can you take out a self-service loan?

As part of the Provident self-service loan, you can borrow from 300 to even 15,000 USD. The maximum repayment period for such a loan is two years. However, you can spread it over a shorter period: three, six, twelve or eighteen months. You can choose the repayment period yourself and at the stage of submitting the application you can see how big the installment of the loan will be depending on the particular option.

However, Provident has prepared special loan options for new customers. What can you decide if this is your first loan in this company?

A start loan for USD 0 for four months

In this option, you can apply for a loan in the amount of USD 500 to 1500, and the APRC will be 0 percent. This means that you can borrow funds without additional costs. You must return the funds in four equal installments.

A loan for 0 USD per month

If you need an ad hoc injection, you can get a loan for a month. In this option you have the option of borrowing from USD 300 to 15,000. If you pay back the loan within a month, you will not incur any additional costs.

Pros and cons of Provident self-service loan

Pros and cons of Provident self-service loan

The right choice of loan company and the proposed offer is a safer borrowing and less chance that you will bear unexpected costs. Is a Provident self-service loan worth considering? Before you decide on it, consider its pros and cons.

Advantages

Disadvantages

  • early repayment option
  • low requirements for customers
  • the option of extending the repayment deadline on terms agreed with the lender
  • the option to pay the liability
  • quick transfer of funds to the account
  • the option of additional loan insurance
  • quick formalities without leaving home
  • the lender analyzes the customer’s credit history
  • paid reminders in the absence of timely repayments
  • it happens that the company contacts the employer to confirm the client’s financial situation
  • high costs in the event of failure to meet payment deadlines

Early repayment of self-service loan – is it possible?

One question arises if you are interested in a Provident self-service loan – how to pay back so that the cost of the commitment is as low as possible? First of all on time! If you take out a loan for the first time, a timely repayment makes this loan free.

However, early repayment is also possible. It also reduces the total cost of the loan. Before you decide on a self-service loan with Provident, make sure you are able to pay it back on time so that you don’t incur additional costs related to arrears and avoid being entered on the list of debtors!