What is a cash loan?
Cash loan is the basic loan product in the offers of banking institutions. The term “loan” means that it can be granted only by banks and credit unions, i.e. financial institutions authorized to perform banking activities.
The basis for granting loans, including cash loans, is the Banking Act of August 29, 1997. Article 69 of the Act provides that the loan agreement obliges the bank to make available to the borrower for a fixed period of time the amount of cash intended for a specified purpose.
By signing a loan agreement, the borrower undertakes to use the loan on the terms specified in the agreement, including to return the amount of the loan used together with interest on the specified repayment dates and to pay the commission on the loan granted.
The banking law requires that the loan agreement has a documentary form, i.e. it is concluded in writing. It must specify:
- parties to a loan agreement;
- loan amount and currency;
- purpose of lending (if it must be specified);
- loan repayment rules and dates;
- interest rate and conditions for changing it;
- way of securing repayment;
- scope of the bank’s rights related to the control of loan use and repayment;
- dates and method of providing funds to the borrower;
- the amount of commission, if applicable;
- conditions for making changes and terminating the contract.
It is also called consumer credit. Pursuant to the Act on such a loan, the consumer loan is a loan of not more than USD 255 550 or the equivalent of this amount in a currency other than Polish currency – the creditor grants it or promises to grant it to the consumer in the scope of its activity. A loan agreement within the meaning of the banking law, if the quota condition is met, can be equated with a consumer loan agreement.
How do you take out a cash loan?
The procedure of taking out cash loans in banks includes verification of creditworthiness and creditworthiness. However, before the bank begins to analyze the client’s financial situation, the bank must submit a loan application and complete the necessary documents. These will include:
- documents confirming the customer’s identity – an ID card and a second photo document are required, e.g. a passport;
- income certificate, allowing to estimate the customer’s creditworthiness, or other documents confirming the amount of income obtained.
When taking a loan, the bank will check entries in the customer’s BIK, i.e. in the Credit Information Bureau. Negative information recorded in the BIK, indicating that the client is an unreliable borrower, means that the bank will refuse to grant a loan. That is why bank loans for the indebted are not available.
Is an online calculator useful when choosing an offer for a cash loan?
Everyone who wants to borrow from a bank wants to take out the cheapest cash loan. But how do you find such a loan? The cash loan comparison website and the current cash loan ranking come with help. These are tools that allow you to check in which bank you can get a cheap cash loan. The cheapest cash loans are at the top of the ranking list, although it should be borne in mind that when building such rankings, only the model borrower and the agreed loan are always taken into account.
The cash loan calculator allows you to find a cash loan that meets our expectations and has the lowest costs online. If we take out a cash loan, the comparison of the offers indicated in the calculator should be made using not only the interest rate on the cash loan, but also other parameters, especially APRC. This is the annual actual interest rate illustrating the total credit costs.
The interest rate on cash loans, as well as other loans and advances, may not exceed twice the statutory interest, and those pursuant to art. 359 § 2 of the Civil Code amount to the sum of the reference rate of the Cream Bank and 3.5 percentage points. In January 2019, the NBP reference rate was 1.5 percent, which is why the annual statutory interest rate reached 5 percent, and the maximum interest on financial liabilities – 10 percent. per year.
Who can take out cash loans up to 50,000 USD?
Any adult citizen of the Republic of Poland in Polish banks and credit unions who has sufficient creditworthiness can apply for a cash loan. For example, in the case of cash loans up to 50,000. USD creditworthiness must be sufficient to repay the capital and interest installments in an adequate amount, and the client should remain in the account monthly enough to allow for normal consumption. Few banks provide loans in the amount of over USD 100,000 in Poland.
Many customers ask themselves, how much money do I have to earn to get a cash loan? How much can you get it? The final amount of cash loan granted by the bank depends on the individual assessment of creditworthiness. The higher the creditworthiness, i.e. the ability to settle financial obligations with interest on time, the higher the amount of cash loan will be. It will increase with the extension of the loan period, but at the same time the total cost of the loan increases.
It is worth using a loan calculator, in which you can see what amount of the loan installment will have to be repaid with the assumed amount and loan period. Calculate the cash loan installment in the calculator and check whether you can afford it objectively. If you find that your earnings are getting better and your income is higher in the course of your loan repayment, you can end repayment early. Early repayment of the cash loan reduces overall loan costs.
Online cash loan – a convenient option for the customer
One of the options to get a cash loan is to use the internet offer. An online cash loan allows you to get the money you want quickly and efficiently. Banks are increasingly meeting clients’ expectations and offering online cash loans without certificates. This loan is primarily for those borrowers who have a good history of cooperation with the bank and a good credit history at BIK.
Such quick cash loan does not require submitting along with the loan application certificates on the amount of income obtained. As a result, the customer obtains a cash loan without income or employment certificates, with payment to a given bank account – usually at the same bank.
Not necessarily online cash loan in your own bank will be the most advantageous online loan offer available on the financial market. So let’s compare at least a few loans.