Special repayments are unscheduled payments to reduce the remaining debt on a loan

Unless otherwise agreed in the contractual terms, additional payments may result in costs for the customer. Nevertheless, it can be worthwhile for borrowers to make special repayments. This article shows when this is the case and what consumers have to consider.

Definition: What is a special repayment?

Definition: What is a special repayment?

With special repayments, borrowers reduce the residual debt of a loan. You have the option of making additional payments to the bank once or regularly, regardless of your installments. These amounts count towards the repayment of the loan, which reduces the remaining debt. This results in a double effect for annuity loans and special repayments:

  • The term of the loan is shortened.
  • The interest burden drops.

In the case of annuity loans, the installments consist of a repayment component and an interest component. Since the monthly installments remain the same over the entire term until the debt is settled, payments are not required due to the special repayment. Thus, the borrowers save the interest portion of the missing installments.

With a classic installment loan, additional payments are not provided as standard. Nevertheless, many lenders offer their customers the opportunity. This option is used by consumers when they receive capital, whether planned or unplanned, for example from insurance, special benefits such as vacation and Christmas bonuses or through an inheritance.

As a rule, special repayments are subject to one of the following conditions:

  • Special repayment right between five and ten percent of the net loan amount per year
  • Maximum annual amount in USD (1,000 USD, 2,000 USD,)
  • Total maximum amount in percent, for example a maximum of 20 percent of the net loan amount during the entire term

Calculate special repayment (with example)

Calculate special repayment (with example)

To be able to calculate the effects of the special repayment, a repayment plan is necessary. Customers receive this when completing their loan. As a rule, no special repayments are taken into account without an express customer request. An example:

  • Loan amount: 10,000 USD
  • Borrowing rate: 5.5 percent
  • Term fixed interest period: 5 years
  • Monthly rate: 129.17 USD
  • Remaining debt after the fixed interest period has expired : USD 4,259.93

In this example it can be seen that customers repay their loan with 5,740.07 USD within five years. The interest expense is 2,009.93 USD. At the end of the term, there is a remaining debt of 4,259.93 USD.

Repayment schedule with special repayment

Customers can find various free computers on the Internet that they can use to create their repayment plan with special repayments. To do this, they enter all credit-relevant data and the desired additional payments. Based on the above example and a free annual repayment of 600 USD, your repayment schedule would now look like this:

  • Loan amount: 10,000 USD
  • Borrowing rate: 5.5 percent
  • Term fixed interest period: 5 years
  • Monthly rate: 129.17 USD
  • Remaining debt after the fixed interest period: 901.85 USD
  • Special repayments of 600.00 USD per year

Evaluation of the repayment plan

Looking at this example to calculate the special repayment, it becomes clear what advantages the additional payments have with an annuity loan. Customers not only reduce their residual debt, they also save high interest costs.

In this case, the free special repayments make sense for the borrower due to the interest savings. If the customers paid a higher amount, there would be no remaining debt after the fixed interest period. It would also be possible for them to pay off their loan earlier. There may be a prepayment penalty.

Make a special repayment

In order to make a special repayment, the borrowers must know the amount of the additional payments that are contractually permissible. Some banks set their customers fixed dates on which the special repayment has to flow. If borrowers miss this date, there is no option to make a free payment for the current year.

Many borrowers wonder about the special repayment, how to transfer it. Unless otherwise noted by the banks, the payment will be transferred to the bank account designated for payment in installments. It is advisable to state the note “special repayment” in the booking note. In addition, the contract number and customer number must not be missing, so that the bank correctly allocates the amount.

Tip: Set up a standing order – By setting up a standing order, customers do not miss any of the deadlines set by the banks and can be sure that their additional payment will be carried out automatically.

When does a special repayment make sense and for whom is it worth it?

When does a special repayment make sense and for whom is it worth it?

Special repayment options are not mandatory for customers. If this option has been stipulated in the contract, the borrowers can make additional payments, but do not have to make use of them. For personal loans, many banks offer this option as a standard in their contracts. If the payments are not associated with additional costs, special repayments make sense for customers who want to pay off their loan as quickly as possible.

Especially with larger amounts of money, borrowers have to take into account the so-called opportunity costs. These are amounts that customers will miss if they do not invest the money in capital investments. If the interest rate on the money market is higher, for example for funds or interest products, it is more worthwhile for consumers to invest the amount at good interest rates.

Tip: Savings with low repayments – Special repayments are profitable, especially for borrowers with a low initial repayment. Due to the high interest component in the first few years, the additional payments reduce their interest burden at the beginning of the term.

Costs and fees for special repayments

Costs and fees for special repayments

The banks make a significant difference in terms of the special repayment options. At some institutions, additional payments for small loans are free of charge, at others fees are payable. Customers who are interested in special repayments should therefore check this option when signing the contract. These fees may apply if borrowers make unscheduled payments:

Calculation fees and interest premiums

With low special repayment amounts of up to five percent of the net loan amount, many lenders do not charge fees. However, if customers want to repay more, they have to expect interest surcharges. As a rule, these are between 0.05 and 0.07 percent.

Caution: In the case of construction financing, the interest mark-up for the special repayment option can be significantly higher and up to 0.25 percentage points. With a financing sum of 200,000 USD and a term of 15 years, the loan costs increase considerably:

The inclusion of a special repayment option, especially with real estate loans, is only economical if the borrowers actually make use of it.

Tip: Take the APR into account – The APR gives information about the total cost of a loan, since it contains all the fees. The effective interest rate also includes the additional amount for special repayments. With finance check’s free loan comparison, consumers can easily compare the effective annual interest rate of many banks with each other in order to find the best offer for themselves.

Special repayments can have a negative impact on the tax

The repayment portion of a loan cannot be deducted from tax. This also applies to special repayments, so they are not taken into account by the tax office. However, the interest expense can be tax deductible if the loan is used to generate permanent income. These prerequisites apply to the self-employed who apply for a business loan or a building loan that is used to finance rental apartments.

Special repayments offer the advantage of lowering the interest burden. However, this property can be a disadvantage for people who claim the loan for tax purposes. Due to the reduced interest expenses, the taxable income and thus your tax burden increases.

Special repayments on car loans

Special repayments on car loans

Special repayments on car loans make sense if customers have deposited their vehicle as security. Due to the earlier repayment of the loan, the vehicle registration passes to them more quickly, making them the rightful owner. Additional payments are also worthwhile if the borrowers want to sell the financed vehicle in the next few years and do not get the bank’s approval.

Special repayments for construction finance

As already mentioned, not every bank offers the special repayment free of charge. Especially with home loans. the option is often associated with higher interest rates. Special repayments that are subject to a fee only make sense if customers are guaranteed to make use of them. This is the case, for example, if they expect a large sum of money in the coming years that they will bring in to finance their home.

Despite the additional fees, it can be worthwhile to pay off the construction loan faster than planned. Depending on the amount of the special repayments, borrowers can shorten their financing period by several years. The interest expenses saved as a result can significantly exceed the additional costs. In this case, it is advisable to have the bank draw up a repayment plan that includes the special payments.

Tip: Use Intrasavings loans – Intrasavings bank building loans offer borrowers several advantages, not least because of the low interest rates. Another positive aspect is that the bank considers free special repayments in most contracts.

Prepayment penalty for special repayments

Prepayment penalty for special repayments

If borrowers repay their loan earlier than planned, the banks may charge a prepayment penalty. This is a colloquial contractual penalty that is intended to cover the refinancing and margin damage of the bank. The amount of the prepayment penalty is regulated by law and depends on the remaining term:

  • a maximum of 1 percent of the remaining debt with a remaining term of more than 12 months
  • maximum 0.5 percent of the remaining debt with less than 12 months remaining term

Compare condition of loans and banks

The condition of a loan often differs considerably from bank to bank. Borrowers should therefore compare both the loan and the bank conditions beforehand. The decision for a loan should never be taken lightly.

Condition comparison in mortgage lending

Condition comparison in mortgage lending

Credit contracts usually have a long term. In particular, a building loan often has to be paid off by borrowers over several decades. Excellent conditions can significantly reduce the financial burden on borrowers.

It is therefore advisable for anyone interested to compare the conditions of the credit institutions.

All consumers should pay particular attention to the following aspects:

  • Interest rate
  • Account management fees
  • faster repayment of the loan can be possible through special payments
  • early repayment of the loan amount possible (no prepayment penalty).

Borrowers receive the best and cheapest conditions if they have a good credit rating and a certain amount of equity is available for a real estate loan. A very good credit rating reduces the risk of the banks considerably.

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.

Use loan calculator to assess conditions

Use loan calculator to assess conditions

By comparing the terms of the loans offered and the terms of the different banks, future borrowers can quickly get a comprehensive overview.

  • There are loan calculators on the Internet that immediately display the effective annual interest and the debit interest. Another important indicator for evaluating the average credit costs for credit-related loans is the two-thirds interest rate. This interest is given by the respective bank to two thirds of the borrowers.

Pesel loan – is it possible to obtain it?

The Pesel loan is increasingly appearing in non-bank companies’ offers. People who need a quick injection of cash are looking for her. Is a Pesel number sufficient to use the loan? Is such a commitment safe and where to look for it? We answer!

What exactly does Pesel mean?

money

The Pesel number is a number that you will often enter on various forms and applications. It is needed when concluding contracts, when dealing with matters in tax offices and in many other situations. Because you have to give it so often, you may already know it by heart. However, do you know what the Pesel number means?

Pesel is an abbreviation of the Universal Electronic Population Register System. This number is assigned to every natural person. It consists of eleven numbers that specify the date of birth, order number, gender and control number. After this number in the said system you can read a lot of your personal data.

He collects information about, inter alia, the name, surname, citizenship, marital status, spouse’s name and surname, address of residence and ID card number. Any changes that occur in the scope of this data will be saved in the system.

However, only authorized bodies have access to the Pesel database, for example the police, guard, prosecutor’s office or other state administration bodies. Therefore, it is not possible for them to be viewed by unauthorized persons, for example employees of a loan company.

Is a Pesel loan possible?

Is a Lite loan possible?

Due to the growing interest in the non-bank loans market and irritation of clients for too extensive formalities, parabank companies are constantly creating new offers that are to convince clients to use their services. One of the entries that appears in their proposals are loans for Pesel. Can I take a loan at Pesel?

In principle, the Pesel loan is no different from a proof loan. Only the name differs. In practice, it turns out that when filling in the loan application, in both cases the same data must be provided.

IMPORTANT!

The Pesel number alone is not sufficient for the lender to be able to conclude the loan agreement. Additional information is required, such as your ID card number, current marital status or income information.

So can you take out a Pesel loan? Pesel alone certainly not. Therefore, the Pesel loan slogan is in a sense an advertising slogan. However, this number will certainly need to be provided with other details in the application.

Pesel loan and extortion – how to defend yourself?

Lite loan and extortion - how to defend yourself?

Loan companies make sure that their services are as safe as possible. They must not allow loans to be taken by unauthorized persons. First, they would have a problem with recovering. Secondly, they would lose the trust of customers interested in their offer.

Unfortunately, despite many precautions, it is possible that a Pesel loan can be extorted. How is this possible? Contrary to appearances, it is not so difficult to get another person’s Pesel number. You do not have to worry, however, that someone after you give it to the loan company will make a commitment to you.

Each customer of a non-bank company must confirm the given data by presenting an identity document or by knowing its number. However, it may happen that someone uses a fake ID to take out a loan for you. How can you check if someone has taken your payday pay and protect yourself against such situations?

1. Try not to lose your ID card

1. Try not to lose your ID card

Identity cards that fall into the wrong hands can be used by some institutions to take out a loan. It can also serve as a model for people who deal with counterfeiting documents. So try to always have it with you.

If you happen to lose it, report this fact as soon as possible to the commune office, the police or the website.gov.pl, and abroad also at the consulate.

2. Use the Safe Pesel service

2. Use the Safe Lite service

If you do not intend to take out loans in the near future, you can use the Safe Pesel service on safePesel.pl. It does not require logging in and costs nothing. Such a reservation makes it impossible to take a loan on the indicated number.

If someone tries to extort money from him, the loan company will receive an appropriate alert and consider the application negatively.

3. Activate BIK alerts

3. Activate BIK alerts

BIK Alerts is a service of the Credit Information Bureau addressed to individual clients. It allows you to set notifications that you will receive in the form of an SMS when someone monitors your data in the system.

If you are not applying for a loan yourself, on this attitude you will be able to conclude that someone is trying to use your data to extort funds and thus respond accordingly.

What do companies verify when granting a Pesel loan?

What do companies verify when granting a Lite loan?

As you already know, a Pesel loan is possible mainly in theory. Loan companies check a number of data before deciding to grant you funds. What do they most often verify?

  • The compliance of the data on the identity document with the data provided on the form;
  • The correct Pesel number, mobile number and e-mail address;
  • The fact of employment and the amount of monthly earnings;
  • The correctness of the bank account number;
  • A positive credit history and presence on the list of debtors such as ERIF or BIG.

Who can get a Pesel loan?

Who can get a Lite loan?

In practice, the rules for granting loans for Pesel do not differ from the rules for loans for evidence. Therefore, they can be received by adults who have adequate creditworthiness. The specific requirements for clients are defined by loan companies.

Do you know that…

No one can get a loan only for Pesel alone? If a company offers such a solution, it may be a phishing scam.

Pesel loans – where to look for offers

Lite loans - where to look for offers

If you are in a difficult situation and urgently need funds, and you are afraid that you will not get a loan due to entries on the list of debtors, look for a loan without BIK. These are loans that you will get even without a positive credit history .

Also browse Pesel loan offers, but only from proven loan companies.

Leasing loan – is it worth using this option?

What is a leasing loan?

What is a leasing loan?

The use of leasing services is for Polish companies one of the most important ways to obtain funds for investments in machinery and equipment necessary to conduct business. Recently, companies providing such services have offered, apart from standard leasing, a completely different solution, i.e. a leasing loan.

The product name perfectly reflects its character, because it combines the features of credit and leasing. In fact, it is a special-purpose loan for companies for the purchase of fixed assets, which is called ‘leasing’ because of the purpose (leasing also allows financing fixed assets).

The above product was created because traditional operating or financial leasing did not meet the needs of all enterprises. The loan turns out to be a better solution when obtaining EU subsidies, as well as for companies that are not VAT payers.

We will explain these issues in the following paragraphs, in which we will also explain in more detail what a leasing loan is and what its advantages and disadvantages are.

Leasing loan and leasing – what are the differences?

Leasing loan and leasing - what are the differences?

Despite the similar purpose of both products (purchase of fixed assets), leasing and leasing loan are in fact completely different solutions, which in addition have different tax and accounting consequences.

1. The issue of ownership of a fixed asset

The main difference in the subject of leasing loan and leasing is the ownership right to the fixed asset purchased with their help. In the case of classic operating leasing, the car, device or machine remains the property of the leasing company throughout the duration of the contract.

The enterprise using the service has the right only to use the fixed asset. In turn, after taking out a loan, the entrepreneur immediately becomes the owner of the fixed asset.

2. Depreciation

The consequence of the difference regarding ownership of a fixed asset is also the right to make depreciation charges. The lessor has operating leases, while the enterprise has a loan which has bought a machine or device thanks to financing.

3. VAT

For non-VAT payers, one of the biggest benefits of a leasing loan is that VAT is not added to your monthly loan installments. In operational leasing, the entrepreneur has to pay monthly leasing installments plus VAT.

4. Leasing loan and leasing – formal issues

The method of obtaining financing and the formalities related to it are quite a significant difference. First of all, leasing requires a certain amount of own contribution, while loans allow you to finance up to 100% of your investment. When considering what is better, leasing or leasing loan, it is also worth paying attention to the duration of the contract.

In the case of leasing, it cannot be arbitrary, because the restrictions on this are imposed by the Accounting Act. In practice, it is a minimum of 2-3 years. The loan agreement can be concluded for any period – usually from several months to 7-8 years.

It is worth remembering that with a leasing loan, security is often used, such as: registered pledge, promissory note, assignment from insurance, and transfer of receivables from an EU subsidy.

Is a car leasing loan a good solution?

Is a car leasing loan a good solution?

One of the most frequently purchased fixed assets by companies is a car (passenger or delivery vehicle), which is often also the subject of leasing contracts. It is therefore worth considering whether a car leasing loan is a good idea. The use of this solution is supported by:

  • simpler procedures related to applying for a loan than for a bank loan,
  • lower requirements for creditworthiness than for loans (e.g. for freelancers loans without income certificates are available),
  • purchase of a car, not taking it into use as if leasing,
  • the option of buying both a new and used car,
  • no own contribution, which is obligatory for leasing,
  • the possibility of flexible adjustment of the loan repayment period, and thus also the amount of the monthly installment to the financial capabilities of the enterprise.

The leasing loan can be used to finance not only passenger cars and trucks, but also other fixed assets such as:

  • semitrailers, trailers, specialized vehicles,
  • machines and devices (e.g. production, construction),
  • specialized medical devices,
  • agricultural machinery and vehicles,
  • IT equipment
  • property.

Who is the leasing loan for?

Who is the leasing loan for?

Due to the purpose associated with the purchase of a fixed asset, a lease loan can be used by all enterprises. However, considering the specific features of this product, it is suitable in particular for the following entities:

  • companies that are not VAT payers,
  • members of the professions, especially doctors, who often buy equipment with an 8% VAT rate,
  • farmers, also not conducting business activity,
  • companies applying for subsidies from the EU.

It is worth mentioning that the discussed financial solution is particularly popular among enterprises using EU funds. It is for them that some leasing companies have special leasing loans for subsidies. Purchase of a fixed asset on the basis of a loan immediately gives the ownership right to it, which is necessary to obtain funding.

What are the costs of a leasing loan?

What are the costs of a leasing loan?

For companies that are interested in leasing loans, costs and interest are usually of great importance. Although each leasing company offers slightly different conditions in this respect, it can generally be considered that they are similar to the conditions of traditional investment company loans, which are proposed in banks.

Among the available offers you can find very interesting suggestions. An example is the possibility of financing the purchase of a vehicle or other fixed asset in a net or gross amount (i.e. including VAT).

You can also find solutions taken from car loans, i.e. 50/50 loans, where the repayment is divided into two installments, regulated every 12 months, at an attractive interest rate.

When it comes to the cost of the leasing loan, it is worth paying attention to the method of its settlement, which affects the profitability of this solution. The entrepreneur may include in the tax deductible costs the interest part of each installment and make depreciation charges every month.

However, the total cost of the loan may be increased by additional fees, e.g. related to establishing a registered pledge.

Where can you find a leasing loan?

If you want to use this form of financing, you should look for offers in leasing companies, including those operating at banks.

The leasing loan is available, among others, at the following institutions:

  • PKO Leasing,
  • Alior Leasing,
  • BNP Paribas Leasing Services,
  • European Leasing Fund,
  • Idea Getin Leasing,
  • SGB ‚Äč‚ÄčLeasing.

If you buy a car, leasing loans are often available directly from dealerships.

What are the pros and cons of a leasing loan?

What are the pros and cons of a leasing loan?

Before making a decision on a leasing loan, it is worth getting to know this financial product closer. This type of offer is favorable from a tax point of view. Jenak is a great solution for people who are not VAT payers. However, like any product, a leasing loan also has its drawbacks.

ADVANTAGES DISADVANTAGES
Simple formalities, quick decision It is possible to finance only the purchase of a fixed asset (this is not a loan for any purpose)
Possibility of using without own contribution (it depends on the amount of financing) It is not possible to replace a fixed asset, e.g. a car, with a new one after the end of the contract, as is the case with leasing
No minimum funding period Additional costs associated with establishing collateral
Possible long financing period, and therefore low monthly installments Difficulties in obtaining financing for unusual machines and devices
Ownership of the asset after purchase The loan agreement goes to BIK, which then translates into the company’s creditworthiness
Possibility of making depreciation charges No tax benefits for companies that are VAT payers
Less burden for the company due to the lack of VAT added to the loan installments Inability to include the entire installment in operating costs (interest can only be included)

Loans without commission – check where to look!

What is the loan commission?

What is the loan commission?

One of the most important criteria for choosing a cash loan is its cost. It depends on him how much we pay the lender for the service. So it is obvious that the lower it is, the cheaper it will be, and therefore more profitable.

The cost of a loan or credit consists of many elements – these are primarily interest, but also various additional fees, which constitute an additional profit for the lender. For non-bank products, the non- interest cost is usually the commission for granting the loan, and in some cases also the preparation fee.

According to the general definition, commission on a loan is a form of remuneration for the lender for providing a service related to its provision. Its amount is most often calculated as a percentage of the value of the borrowed amount.

Regardless of whether you are applying for a small online payday loan or a larger installment loan, before entering into a contract the lender should provide you with a detailed list of all costs associated with incurring a commitment. They are usually presented in so-called Information Form – you will find in it, among others total repayment amount, APRC and the amount of interest and commission expressed in amounts.

No commission loan – what offer is this?

No commission loan - what offer is this?

Knowing the cost of loans, it’s easy to guess what a loan with no commission means. This is an offer in which the lender does not charge a commission for providing the service. Therefore, interest and other charges, e.g. preparation fees, are added to the amount of the liability.

Despite this, the lack of commission alone reduces the cost of borrowing. In the case of non-bank products, the difference can be significant, depending on the amount of the commitment made, thanks to this promotion, you can save from tens to even several thousand USD.

A commission-free loan is a promotional offer that is most often targeted at new clients. This means that you can only count on the discount when you make a commitment for the first time in a given company offering such a promotion.

Many non-bank companies also offer other interesting promotions that allow you to save on costs related to incurring liabilities. The most popular ones are payday loans for free, for which no money borrowing fees are charged. By using such a product, you do not have to pay not only commission, but also interest and any other fees. In a word, you give back exactly the same amount that was loaned to you.

How to get the first loan without a commission?

How to get the first loan without a commission?

You can take advantage of the promotion to reduce your liability costs at many non-bank companies, as well as at some banks. How to find such an offer, we will tell you in the following paragraphs. It is worth mentioning, however, that it can be searched on the Internet, and it is proposed by institutions specializing primarily in providing instant payday loans.

In most cases, as part of this promotion, the first loan is offered without commission, i.e. for new customers of a given company who want to take advantage of its offer for the first time.

To enlist it, it’s usually enough to complete some simple formalities, such as:

  • Submission of a loan application.

To do this, you must complete the form, providing personal and address details, as well as information on income, bank account and financial situation. When submitting an online application, an essential element of this stage is also confirming your identity – for example, a verification transfer.

  • Choice of the amount of the liability and its repayment period.

In the case of a quick payday loan, the maximum refund period is 30 days. In turn, repayment of an installment loan can usually be spread over a period of 3 to 48 months.

  • Familiarization with the terms of the contract and the cost of crediting – in the field regarding commission should be entered the value of 0 USD.
  • Expressing the necessary consents to the processing of personal data.
  • Receipt of a credit decision – companies operating via the Internet usually forward it via SMS or email.

Who is the loan with no commission for?

Who is the loan with no commission for?

As we have already mentioned, only new clients of an institution can benefit from the promotion of a commission-free loan. This is not a big limitation, because such offers quite often appear at different lenders. All you have to do is choose a company where you haven’t incurred a commitment before.

Remember, however, that each institution grants loans only to people who meet certain conditions. So you have a chance for a loan without a commission if:

  • you are the right age – depending on the company, the minimum age may be 18 or more,
  • you have a valid ID card,
  • you have your own bank account,
  • you can indicate a permanent home address in Poland,
  • you regularly receive income enabling repayment of liabilities, e.g. under an employment contract, retirement pension, disability pension, etc.,
  • you are reliable in terms of timely settlement of obligations – the lender can (but does not have to) check it in the Credit Information Bureau and BIG debtors’ registers.

In the case of online application, it is also necessary to have a mobile phone, e-mail address and a device with Internet access. Although most lenders require information on the amount and source of income, it is very rare to provide documents that confirm it.

Loan offers without commission – where to look for them?

Loan offers without commission - where to look for them?

If you want to borrow money without paying a commission, you can easily find promotional loan offers both in banks and non-bank companies. However, loan institutions have the advantage over banks that they provide services without using complicated formalities and complicated procedures.

In case you are interested in a quick, commission-free loan that can be obtained without filling out a stack of forms and providing multiple documents, look through the offers of loan institutions. You can do it online, e.g. using the free payday rankings. You can also go to a broker who will help you find the best offer tailored to your needs.

Loans with no commission online – is it possible?

Loans with no commission online - is it possible?

Non-bank companies and banks are trying to go with the times and maximally facilitate their clients using financial services. That is why a loan without a commission via the Internet is available today in many institutions. It consists in the fact that you can take it online without leaving your home – all you need is a computer, tablet or smartphone with internet access.

The advantage of this product are simple formalities, as well as a very short waiting time for funds – usually you can have borrowed money on your bank account within an hour of submitting the application. A convenient online loan to your account allows you to quickly obtain additional funds, and thanks to the promotional terms you can save on the costs of contracting.

Remember, however, that the total cost of the loan consists of several additional elements. Before using the promotion, compare as many offers as possible, paying attention to interest rates and additional fees. This will guarantee that you will borrow funds on really favorable terms.

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!