Uncategorized

The most important terms you need to know before you take out a loan

Even in an urgent situation, when it is necessary to quickly obtain additional funds, one should not forget about the security of the concluded transaction. Using only the services of reliable institutions will protect us from many unpleasant consequences.

When choosing, it is worth using not only opinions about a given company, but also whether it belongs to the association of institutions with a similar profile of activity.

Association of Loan Companies

credit money loan cash

The non-bank loans market , as it is not subject to control by the Polish Financial Supervision Authority, had to ensure self-regulation and proper functioning as well as the highest standards in customer service. In this way the Association of Loan Companies was established. One of its main members is Credit Lend.

The Association’s overriding task is to promote good practices in the field of providing short-term loans online. It is worth emphasizing that the financial institutions that apply for membership of the ZFP are subject to extremely strict criteria. Among the requirements are, among others:

  • granting loans from own funds. This means that the risk associated with the business is borne solely by the lender, not the clients depositing their own funds in a given company;
  • no criminal proceedings being conducted, both in relation to the company and members of the management;
  • failure to appear on the list of KNF warnings;
  • low level of customer complaints;
  • compliance with the provisions regarding the protection of personal data, as well as other provisions related to the operations conducted;
  • the use of clear, legible rules in the construction of the contract, and in particular in the provisions regarding the costs and deadlines for the repayment of the liability.

In addition to meeting these and many other criteria, the company must receive the recommendation of at least two other ZFP members.

Therefore, when deciding to take out a loan, it is worth checking whether the institution from which you want to borrow funds belongs to the Association of Loan Companies. We have a guarantee that we will not be surprised by additional costs or other unpleasant surprises, even in the form of onerous debt collection.

APRC

APRC, i.e. the actual annual interest rate, is an indicator that determines the total cost of the loan in terms of percentage. Its value includes, among others: interest, handling charges, commission, insurance costs, as well as all other claims related to the payment of the measure. by the lender. In practice, the APRC value expresses the total cost of the loan over a year, so it is important when choosing a long-term offer. Often, financial institutions advertise their products as low-interest. In such a situation, first of all, the above indicator should be checked, because it may turn out that low interest rates are accompanied by high other costs.

On the other hand, in the case of short-term liabilities, the APRC indicator is not reliable; it determines the cost of the loan – for example thirty days – with an annual repayment period. It is also worth noting that the already mentioned institution grants loans to new clients up to PLN 2,000 completely at no cost, so here the administration of APRC is pointless.

Responsible borrowing

credit money loan cash

When deciding to take out a loan, it is first of all worth assessing whether it is actually necessary and whether we will be able to pay it back on time. By giving in to the impulse, we can run into financial problems. There are situations, however, when external support is indeed necessary.

According to the report Fight for the Polish loan market in the light of the amendment to the Consumer Credit Act developed by the Association of Entrepreneurs and Employers, 53% of liabilities incurred in loan companies are allocated to renovation, 39% – for current expenses, and 29% – for fixed fees. These data show that consumers are responsible for borrowing and resources are allocated to the most important needs.

Another important issue regarding responsible borrowing is conscious decision making

credit money loan cash

Therefore, it is absolutely necessary to read the contract carefully, check all the conditions, costs, fees, procedures related to debt collection and many other elements that may be of key importance in case of disputes.

If any wording or conditions are unclear, you must resolve these doubts or postpone the signing of the contract. An important element when concluding a loan agreement is the information form. It should contain, among others, information such as: the total cost of the loan, the repayment date, effects of non-repayment and the form of its security.

A loan is a good solution in the event of a financial crisis, and thanks to it we can deal with unforeseen expenses. However, even when a quick decision needs to be made, first and foremost, make sure that the commitment is completely secure. Therefore, it is best to take out a loan in a trusted, reliable company, check the terms of the contract carefully and assess whether its cost does not overburden your home budget.

About

No Comments

Leave a Comment