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Credit products enjoy uninterrupted popularity. What is worth noting, we usually reach for a short-term loan. According to research by the Bank Association, short-term loans are preferred by as much as 91 percent of respondents. We don’t want to pay back the cash loan for years. We prefer to pay the debt quickly and not worry about installments that overburden the household budget. What charactersizes short-term loan? Where to apply for the cheapest loan? Check!

Do banks offer short-term loans?

The most important feature of a short-term loan is its short loan term, up to a maximum of one year. Who offers short-term loan? This is the question we will answer first. Most banks offer a long-term loan for a simple reason. A longer repayment period means greater profit for them. Hence, we can easily find a cash loan for 8 or 10 years in the banks’ offer.

It is much more difficult to come across a short-term loan offer. However, nothing prevents you to choose a long-term loan and pay back the debt within 12 months. The maximum repayment period is 96 or even 120 months, but we can specify any repayment period. Each bank sets a minimum loan period. That’s why we included these offers in our comparison.

Short-term loan – definition

Short-term loan, like any bank loan, requires the conclusion of a written agreement between the lender and the borrower. The lender grants a certain amount of credit for a specified period, while the borrower undertakes to repay it on the agreed date along with accrued interest.
Features of short-term loan:

• granted for a maximum period of one year,
• most often it concerns small amounts that are easier to pay back within 12 months,
• it is associated with favorable terms of the loan agreement, including the possibility of applying online or a quick loan decision.

Who can apply for a short-term loan?

The short-term loan offer may be used by persons who:

• are of legal age,
• have an ID card,
• have citizenship,
• have a permanent home address in the country,
• have adequate creditworthiness,
• are not entered in the register of debtors.

Banks carefully check the creditworthiness of each client. They want to make sure that the borrower returns the money on time. The most important factors are the amount of remuneration, form of employment, monthly cost of living and the number of household members, but also the lack of other debts. If we want to show that we are reliable customers, we should repay all loans and credits on time.

What do you need to do to get a short-term loan?

The credit procedure starts when you choose the cash loan offer. If we know which bank we want to sign the loan agreement with, we have to submit an application and wait for the decision.
How do I apply for a loan? We can do this in three ways: online, by phone or at a bank branch. The online procedure is usually only available to existing customers. If we already have a bank account, all you have to do is log in to electronic banking and submit an application there. In the case of telephone inference, a consultant will guide us through the entire process. Our task is only to leave the phone number on the website or the hotline account. We can also go to a bank branch and complete all formalities there.

 

Are you planning to take a loan for an apartment? The best solution seems to be a mortgage! However, this is not the only way to make your own. dream come true. We can also apply for a cash loan. Which option is more profitable – mortgage or cash? Let’s see what solution brings more benefits! Only in this way will we be able to finally decide if we choose a cash or mortgage loan.

Mortgage or cash? Verify your finances!

As much as 71 percent we buy new apartments for cash! For many, buying a flat from a developer is a way to invest savings. What to do when we are not in a group of lucky people who break a piggy bank and do not have to worry about money? Choose a mortgage or cash?

The answer depends on the state of our finances. If we have accumulated no more than 20-30 percent. housing value, then the only right solution is a mortgage. However, when we lack a small amount of several dozen thousand dollars, a cash loan is enough. However, if we do not have the required own contribution and want to use a mortgage, then it is worth taking out a cash loan for the contribution. It is worth combining all the debt with a consolidation loan.

What exactly characterizes individual credit products? What are the differences between them? Where is the best place to take a loan? In our article, we will provide a detailed description of mortgage and cash loans. We invite you to read!

What better mortgage or cash loan – basic differences

What is a cash loan for, and what purposes can we finance with a mortgage? What kind of sealing do banks require? What maximum loan amount can we apply for? We will compare these types of loans in terms of key features to help you choose the right banking product!

The purpose of the loan

The purpose of a mortgage can be:

• buying a house or flat from the primary or secondary market,
• purchase of a construction plot,
• buying a holiday home or recreational plot,
• building a house,
• modernization, renovation or finishing of real estate,
• construction or purchase of a garage,
• buying real estate from a commune, treasury, housing association or trustee,
• repayment of another mortgage.

In the case of a cash loan, we can use the funds received in any way.

Amount of credit

With a mortgage, we have a chance for much larger amounts than with a cash loan. The final amount that the bank will give depends on our creditworthiness.

Credit Procedure

Getting a loan for an apartment is a long and arduous process. The first step is to find the cheapest mortgage, and this is just the beginning. We must submit an application, provide the necessary documents, including a preliminary contract for the sale of an apartment. Let’s not forget about the own contribution! If we have problems putting down the required 20 percent. property value, we can take out a loan for own contribution. The bank will have 21 days to make a credit decision from the moment of submitting the complete set of documents.

The cash loan guarantees a quick credit decision and transfer of funds even on the day of submitting the application! Particularly attractive terms are associated with online credit. By applying for a loan online without leaving home, we can receive money in 15 minutes, without providing additional documents. A loan without certificates requires only an ID card.

Credit costs

When taking out a mortgage, we should be prepared for the need to incur various borrowing costs, including: interest, commission for granting a loan, property valuation costs, credit insurance costs and other types of insurance required by the bank, fees for early loan repayment and for credit holidays and those related to the use of additional products. They include, among others credit card and bank account. Are they obligatory? No, but they can be a chance to lower the commission and the interest rate. We will not pay for faster repayment or suspension of installments in every bank, so you should carefully examine the terms of the loan agreement. Despite so many costs, a mortgage is the cheapest type of bank loan with which we can implement our housing plans.

The main costs of a cash loan include commission and interest rate. Banks more and more often grant commission-free loans! It is worth checking such offers so that the loan is the least burden for the household budget.

Forms of loan collateral

The mortgage relates to large amounts, hence the basic collateral required by banks is to establish a mortgage. When we repay the liability, the court order the mortgage is removed from the land and mortgage register and the property becomes our property. This is not the only form of security – the bank may require bridging insurance until the mortgage is entered. Often it is also necessary to sign a contract to insure a low own contribution, as well as (almost in most cases!) – real estate insurance against fire and other random events. Credit collateral options are many, and all to minimize the risk of non-repayment.

As for cash loans, life insurance, a third party surety or a borrower’s declaration of voluntary submission to enforcement can be a form of security. The bank requires additional collateral only for large loan amounts.

Payday loans with the debt collector are the last resort for those in debt who do not know how to pay the debt collector without losing their property. There are only a few companies on the financial market that offer such a product. Unfortunately, it can be difficult to apply for it. Loans with debt collectors for debtors require collateral in the form of a guarantor or a pledge. The repayment collateral is usually a car, works of art or other valuable items depending on the arrangements of the parties to the contract. Real estate loans with bailiffs can be found mainly in the private loans sector. Taking out loans without bases, among others credit check and databases with a bailiff will we avoid verification in data registers? Unfortunately not.

Each lender must limit its credit risk to some extent, which is why it will check the level of our debt in selected registers. In this way, the loan will be better tailored to the client’s needs and financial capabilities. Loans for those in debt with a bailiff and negative credit check usually amount to low amounts, so as not to worsen the client’s financial situation. Below is a list of 19 companies offering non-bank loans for indebted loans – bailiffs with debt collectors. The amounts we can count on depend on the individual assessment of creditworthiness.

Loan for debtors with bailiff – requirements for clients 

Each loan application is considered individually and the chances of getting a loan from a bailiff depend on several factors. First of all, the amount and type of debt is important. If bailiff’s debts do not exceed USD 2,000 and their reason was eg unpaid parking tickets – we have a chance to accept the loan application. The condition for granting financing will be our solvency, and thus will achieve a solid income. For this reason, we can not count on loans with a bailiff without certificates or other documents confirming monthly inflows to the account.

People applying for loans with a bailiff and bad credit check should have:

• valid ID card,
• personal account in the bank,
• fixed salary at a specified level,
• employment certificate,
• assets that can be used as collateral for loan repayment,
• loan guarantor.

Remember that the lower the amount of funding, the better the chance of a loan. Favorable payday loans with the bailiff via the Internet will help you find, among others payday rankings.

How to apply for debt relief loans with a bailiff?

 

Applying for a loan with a bailiff via internet takes just a few minutes. The real problem is convincing the lender that it is worth giving us a loan to pay the bailiff. If we apply for loans for those in debt with the guarantor, our guarantor will also have to complete a form regarding his financial standing. If our guarantor successfully passes the creditworthiness assessment, the borrowed amount will be credited to his or our account (depending on the company) within a maximum of 48 hours.

Applying for a car loan will be a little more complicated. You will need to visit an expert and professional car valuation. Next, it is required to make an annotation about the co-ownership on the registration certificate and vehicle card, and provide the lender with the vehicle Card deposit and one set of keys or present a blank promissory note. The loan will be paid out only after submitting the documentation to the lender.

Application for non-bank debt loans without collateral is much faster. In this case, the procedure takes 15 minutes and requires only:

• completing the online form,
• select the loan parameters that interest us,
• filling out the loan application,
• attach income documents,
• confirmation of your identity.

The total lack of credit standing excludes our chances of even a small loan, which is why applications for loans for the unemployed with the bailiff are rejected. If we are not sure how bad our situation is, it is worth checking your data in databases and credit check. The salvation for people whose loan application has been rejected can be community loans or private loans without checking the database with a bailiff. However, special care and reading the terms of the contract several times are recommended for this product.

Loans with a bailiff at the client’s home and credit check – why is it worth it?

Information about the bailiff’s execution against us is visible in databases. For this reason, loans for debtors with bailiff seizures can be particularly problematic. In this situation, any funds paid into the account will be taken from it to repay the outstanding debt, and we will be without cash and with additional commitment. If something unforeseen happened and we urgently need additional money, the best solution will be loans with a bailiff at the client’s home and loans with a bailiff for the credit check.

By deciding to use the payday loan with a bailiff granted at the client’s home, we can get cash in hand without paying it to the account. It is a very discreet and convenient solution that is ideal for problems with the bailiff. The possibility of paying the loan at the post office is guaranteed by the credit check, which will be delivered to us by courier. During bailiff enforcement, a noteworthy solution may also be a limit on a non-bank credit card or transfer of borrowed funds to a prepaid prepaid card. In all these cases, the loan will not be used to pay debt bailiffs, but for the purpose we choose.

 

A leasing loan is a way of financing an enterprise that combines the best features of credit and leasing. It is granted by leasing companies for the purchase of machinery, equipment and vehicles. Its amount is influenced by the borrower’s leasing capacity. The minimum duration of an operating lease is usually 2-3 years. Leasing loans are granted for a period of 6 months to even 6-10 years!

What is a leasing loan?

Wondering what will be the most favorable form of financing an enterprise – cash loan or leasing, we can choose the option combining the features of both liabilities, ie a leasing loan. It can be understood as a type of loan granted by a leasing company and not by a bank. The conditions for granting the loan are similar to those for leasing – the client’s leasing capacity is important.

The financing period for a leasing loan can be from 6 to 120 months, while the borrower does not have to be a VAT payer. The maximum amount possible to obtain depends on the creditworthiness and the price of collateral in the form of financed assets. Depending on the offer of the selected lessor, the client’s own contribution may be low or zero.

Leasing and leasing loans – main differences

Leasing is an alternative to a business development loan and a business loan. It consists in transferring to the lessee the right to use goods not owned by him in exchange for monthly fees for the use of these objects. Thus, the value of the leased equipment is repaid.

The leasing contract must last at least two years. Earlier withdrawal of the lease may be financially disadvantageous for the entrepreneur. The assignment of leasing to a third company will avoid losses. Anyone whose lessor agrees can take over the lease from the current user. This enables the contract to be continued on the existing terms, however, by another entity.

Among the many types of leasing, two are most commonly used:

• Operating lease – this is a relatively short-term contract, and the lessee does not become the owner of the item and is not required to depreciate it. Its cost includes leasing installments, initial payment, expenses related to the use of the item and insurance.
• Financial leasing – it lasts about 5-7 years. The lessee may become the owner of the object from the entry into force of the contract or take over / purchase the leased object free of charge after the contract has expired. The cost includes depreciation, interest portion of the leasing installment, and expenses related to the operation of the item and insurance.

A leasing loan (like leasing) can only be used to finance fixed assets. However, the duration of the contract differs between these two obligations. The minimum operating lease period is from 2 to 3 years. The duration of the leasing loan is determined individually by the lessor and it may reach even 7-10 years.

The loan is granted to the customer for the purchase of the selected fixed asset, with the borrower becoming the owner of the equipment purchased. Like a bank loan, a leasing loan reduces a company’s credit score, while leasing has no effect on it. In addition, VAT is not added to the loan installments, and leasing treated as a service is charged with this tax.

Leasing loan – what to take it for and who will benefit it?

A leasing loan can finance only fixed assets, not current expenses and investments. Fixed assets are used for the needs of business operations, tangible assets owned by the entrepreneur. Their value usually exceeds USD 10,000, and the period of use can be longer than a year.

Although on different terms the loan can finance the same as leasing, incl.

• cars and vans,
• trucks
• machinery and equipment necessary for operating a business (eg agricultural machinery),
• agricultural, medical and IT equipment,
• property.

Leasing companies are more willing to grant loans for the purchase of fixed assets produced by reputable producers and from reliable suppliers. Due to the fact that the loan is not treated as a service, it can be included in the cost of doing business and does not have to be subject to value added tax. Therefore, it is a better solution than leasing when buying used vehicles from individual sellers.

Who can apply for a leasing loan?

With a leasing loan, VAT is included in the monthly installment (and not payable in advance as in leasing) and charged only on the value of your equipment. That is why this solution is often chosen by:

• representatives of professions exempt from VAT,
• freelancers,
• entrepreneurs and farmers (also persons providing services without business activities),
• companies applying for subsidies.

The verification of leasing capacity is similar to leasing. It is influenced by positive credit scores and no entries in the debtors’ databases. Loans for lower amounts are often not required to provide documents confirming the financial situation.

 

Cash loans are financial products offered by banks. Thanks to them, the borrower can obtain funds for any purpose, ie for renovation of an apartment, new furniture, household appliances or electronics or for a trip abroad or buying professional training courses. In this case, the bank will not require a declaration on what funds borrowed by it will be spent.

These types of loans are usually granted for a period of 1 to 10 years, and their amount is usually several to several dozen thousand dollars. To obtain such financing, one must meet the bank’s requirements, as well as have adequate creditworthiness assessed on the basis of factors such as salary, type of employment contract, borrower’s family situation or commitments and credit history so far. If the bank ‘

Internet loans

Online installment loans are very often granted by non-bank institutions. This type of financing for any purpose is quite popular due to limited formalities. To get a loan, all you need is an ID card and an active mobile number. After correctly completing the application, accept the proposal and then read the contract and information form. You do not need to sign any documents – the contract is concluded with the verification transfer.

The short waiting time for the decision to grant a loan and for funds makes this solution an interesting alternative to a cash loan. An advantage is also the fact that the person applying for a loan does not have to present a certificate of employment and earnings, thanks to which people working on the basis of a mandate contract or a specific task contract have a chance.

Safe as in a bank

A bank cash loan is associated with secure borrowing. Meanwhile, it is worth knowing that loan companies are obliged to comply with the Consumer Credit Act, and they must also present their offer in a uniform manner along with a representative example of a loan that includes APRC and total liability costs. However, this is not all.

Non-bank institutions, in order to start their operations, are required to obtain an entry in the Register of Loan Institutions kept by the Financial Supervision Authority. All this makes online loans safe, of course, as long as we choose the right and reliable company. Before making a commitment, it is worth checking to see if the selected institution complies with the Good Practice Principles.

Many citizen are educated and earn abroad, but most of them plan to return to the country. Earned money often invest in real estate in the country. Just like foreigners living and working in our country.

The loan for a person who works abroad

A loan for a person earning abroad is already a norm at a bank. All you have to do is document your income and send a certificate of employment – sometimes even without a translation. In this case, most banks grant a standard loan, requiring only that the credited property be in the country.

A few years ago, the majority of the population emigrated, which either did not have a job in the country, or worked for a relatively low salary, and often had no documented income. So they were not potential clients of the real estate market, the more that they did not have a chance to get a loan from the bank.

Contrary to appearances, the economic emigration of citizen has a big impact on the real estate market. Quite large amounts of money have started to flow into the country, which those working abroad send to families in the country – to a large extent they have been invested in real estate in our country. It is estimated that in 2006 around 1.5-2 million emigrants sent USD 6 billion to the country. To illustrate the scale of the phenomenon – it is 50 percent. direct investment in the country. In addition, a large group of emigrants is currently receiving a high level of documented salary compared to realities, thanks to which they take out loans and buy real estate in the country with a view to returning in a few years.

Mixed couple

Economic emigration also means more marriages with foreigners. Bankers have also thought about such cases – they allow the possibility of granting credit to a foreigner earning both in the country and abroad. A foreigner who wants to take a loan does not even have to be in a formal relationship with a person of nationality. Joint credit can also be granted to unrelated persons.

Similar offer, but …

Offers for people who earn income outside of the country or for foreigners do not differ much from those for citizen earning in the country. Pricing conditions, purpose and loan period are similar. The distinguishing feature is the level of mortgage loan investment financing and slightly wider documentation requirements.

Banks are unlikely to finance a 100% mortgage in such a situation. property value, but at most 80 percent In the case of persons working abroad, own contribution (10-40%) may be required, depending on the currency of the loan, type of investment, etc. Due to price differences between the country and other countries, when assessing creditworthiness, the bank may adopt a minimum maintenance cost values ​​higher than those set for customers employed in the country.

How to apply?

The process of applying for a mortgage in the case of people earning income outside of the country and staying outside of the country may look twofold. An attorney can be appointed who will deal with the formalities on behalf of persons residing abroad – submitting an application for a loan, signing a loan agreement, submitting an application for payment. Such power of attorney must be established on a special bank print by the consul.

In addition, the consul must certify the authenticity of the borrowers’ identity card and such a certified copy should be sent with the power of attorney to the bank. The second option – the bank sends customers to complete all documents – a loan application and other forms, which must then be completed with a consul and sent back to the country.

Documents that the bank may request

• standard documents related to real estate (the type of documents required depends on the purpose of the loan),

• identification,

• documents confirming income: – employment certificates, also contracts or agreements confirming employment, – tax declaration, – certificate from the bank credit register, ie the equivalent of the credit check, about the customer’s credit history in the country in which he is employed,

• the history of the invoice influenced by the last 12 months,

• the requirements may also include a residence or work permit, as long as the borrower is in a country where such certification is required. Most banks accept documents in English, in other cases they should be translated by a sworn translator. Note: Not all banks require all of these documents, so you should always make sure what exactly you need to provide.

 

A mortgage is a loan from a bank to buy an apartment. The collateral for this loan is an apartment for which the loan is rams. The fact that the flat is a loan collateral means that if the loan obligation is not repaid on time, the bank may take over the property.

A loan is a liability for years

In relation to earnings, apartments in the country are expensive. Therefore, the repayment period for a home loan is necessarily long and amounts to several dozen years. By taking such a loan in a bank, you are bound by a financial liability. It will be completed for a very long time. Therefore, it is worth considering whether it is worth doing it. The bank will also “think” about it with you, checking exactly what your income is and whether after deducting the necessary expenses from them, you will have enough money to pay off the next installments.

The fact that it is the cheapest form of borrowing money at the bank is a good reason for taking out a home loan. Home loans have lower interest rates than any other loans.

A mortgage is in short – a mortgage. In most cases, monthly mortgage repayment is a predetermined combination of interest and principal repayments. The amount of the advance may also affect the amount required for final payments and monthly mortgage insurance installments.

Mortgage Depreciation

In a process called mortgage amortization – most mortgage repayments are divided into interest repayments and a decrease in the balance of capital. The percentage of the principal amount relative to the interest paid monthly is calculated in such a way that the principal amount reaches zero after the final payment.

For example, a standard 30-year mortgage will be divided into 360 equal payments, each consisting of different amounts of interest and capital. Several mortgages allow interest-only payments or payments that do not even cover full interest. However, people who plan to own their own apartments or other real estate purchased on credit should choose a depreciated mortgage.

In short, depreciation means the process of dividing payments between interest and the principal amount. Determines how the payment goes, ie payments go mainly towards interest rather than reducing the balance of the main amount.

Mortgage repayment

The most popular mortgages offer a fixed interest rate with a repayment period of 15, 20 or 30 years. Fixed rate mortgages guarantee the same rate throughout the life of the loan, which means that your monthly installment will not increase, even if market rates rise after signing the contract.

Assuming a similar rate, longer-term mortgages offer lower monthly payments than shorter ones, but the increased number of payments means you’ll also pay more interest on the entire loan.

How to take a mortgage?

At this time, it’s best to use the services of a financial advisor. Such a person will lead you “step by step” when applying for a mortgage. You can also travel this route yourself. However, it is worth knowing what to do to get such a loan.

To start with, it’s worth checking your credit history. Special institutions, have been created in the country. You can contact the credit bureau directly.

If the information from the credit bureau is good for you, then you can check your credit standing. You can do it for free using many credit comparison websites or directly from the bank. The greater the creditworthiness, the more credit you can take.

Over 270,000 in the last twenty years, Britons over the age of 50 have signed reverse mortgage agreements totaling over $ 12 billion. In Poland, the reverse mortgage has been talked for almost a dozen years. We did not see statutory regulations but offers in this matter.

Currently, in Poland, this product is offered only by mortgage funds, which in exchange for the transfer of ownership of the apartment by the senior to the fund, undertake to pay a specified lifetime annuity and provide the pensioner with the right to use the flat or house for life (annuity agreement for remuneration in the form of transferring the right to real estate together with establishing lifetime use of the real estate for the benefit of a senior citizen). This is the so-called sales model.

This one is the only one operating on the Polish market

In fact, the first contracts were concluded five years ago. Agreements with seniors are concluded on the basis of the provisions of the Civil Code regarding annuity and paid pensions.

At the time of signing the contract, the apartment ceases to be the property of the senior in exchange for the pension, but he has the right to use it to death. A disadvantage of such contracts is the lack of protection for the senior from the bankruptcy of the company that became the owner of the property. In this case, according to applicable law, the senior’s apartment would become part of the estate.

A life contract would, therefore, protect the senior from being on the pavement, but the fact that he did not pay the pension would not cause him to regain his property. This is also certainly the reason why older people are very cautious about mortgage fund offers. Especially since people with very valuable real estate (from USD 500,000 up) and relatively old can count on a solid financial injection.

A reverse mortgage is still a nice service

although its development is dynamic – claims Robert Majkowski. President of the Home Mortgage Fund. – Our strategy is to acquire a property portfolio worth at least USD 250 million by the end of 2015 – emphasizes Robert Majkowski.

The second functioning reverse mortgage model in the world is the so-called credit model. Banks would offer it and the property would be secured. Such a loan would be paid out according to a predetermined schedule and it was the heir who would decide whether the loan would be repaid in cash or if the bank would simply take over the property.

According to Good Finance’s forecast, nearly 75 percent of Poles do not save for an additional pension, and about 98 percent. current pensioners indicate pensions as the only source of income. For many of them, the only significant assets are their own apartments, i.e. funds frozen as if in real estate.

Work on the government reverse mortgage law is moving very slowly

It is to include not only regulations regarding reverse mortgage (which would be offered by banks), but also life and annuities, which are services that already exist on the Polish market.

The bill assumes that companies offering reverse mortgages will be subject to PFSA supervision or notification to the register kept by the Ministry of Economy. It also determines the capital necessary to establish such a company. Mortgage funds are not afraid of competition from banks.