Non-bank loan what to pay attention to? You do not have credit worthiness and you can not use a bank loan, then what then? The loan company remains. A loan company, not a “Jurisbank”.
” Jurisbank ” is not a financial institution because in our law there is no definition of ” Jurisbank “. At most, we can talk about a loan company, because in most cases we mean such entity, but not about ” Jurisbank “.
Loan companies do not collect their clients’ deposits, but only borrow money from equity. If it happens that a company would like to accept money from us for a deposit, and it is not a bank, then we should run away as soon as possible. Otherwise, we can lose money.
Before we use a loan company, it is worth checking if it is a proven loan company, because it may happen that we will come across a fraudster.
Only reliable loan companies
Such reliable loan companies, known on the Polish market and operating for a longer time in the segment of non-bank loans, can be found in the section with LOAN COMPANIES.
1. If you do not know the company, you have never heard of it before, then check if it is a legal company. On the website (Polish Financial Supervision Authority) you will check the list of public warnings to which all companies to which the SPES has reservations are entered. The website contains a list of entities that are supervised by the Commission, eg banks, insurers, brokerage houses, etc.
2. Since the loan companies are not supervised by the SPES, before the loan is taken, the contract must be read very carefully, read the table of fees, check the total cost of such a loan. Currently in Poland, the so-called The Antilocking Act, which regulates the amount of interest and non-interest costs, but it should be realized that non-bank loans are expensive – much more expensive than in a bank. These high costs are especially visible in the case of non-bank loans in installments. Everything is fine, if we regulate installments on time. However, it may happen that our financial situation will deteriorate and we will stop paying installments. Unfortunately, these are additional costs because loan companies charge high additional costs and penalty interest (currently they amount to 14%). This may already lead to major financial problems.
Before you borrow – think twice whether such a non-bank loan is necessary for you and check exactly how much you will pay for it.
3. You can take the draft contract home and read it peacefully, without the pressure of the loan seller.
4. If you do not understand the provisions of the contract, you have not received a clear answer to your questions – do not sign the contract.
5th Do not use the services of loan companies that advertise themselves on ” pillars “, providing only the mobile number. Companies providing non-bank loans must adhere to the so-called Antilisciplinary Act (regulating the maximum cost of loans), but often try to circumvent these provisions.
6. Check the APR loan, which is the Real Annual Interest Rate. This is the percentage expression of the total cost of the loan on an annual basis. The cost of the loan is not only interest, but also additional costs, such as commission, insurance, administrative fees, handling, etc. Are you applying for a loan of € 5000, and you only receive € 4,000? Where is the € 1000? € 1,000 was collected by the loan company as the cost of the loan.
A consolidation loan in a loan company
Very often the question arises whether a loan company can provide a consolidation loan ? First of all, it should be noted that loan companies do not grant loans (which is the domain of banks), but only loans. Therefore, according to the above statement, loan companies can not give us such a loan. However, they can of course give us a cash loan. And it does not matter whether we call it a consolidation loan or a loan to repay the debt. or else. Cash loans can be used for any purpose, and loan companies, like banks, are not interested in what money from the loan will be transferred.
The loan is regulated by the banking law, and the loan is regulated in the Civil Code.
We can read more about the consolidation loan in the article Is it profitable to take a consolidation loan, and here we only mention that the consolidation loan is a loan for the “combination” of loans and credits in one loan (the so-called loan consolidation). Should you ask yourself whether this new one loan will be cheaper than what we already have? And it does not matter whether we take a consolidation loan in a bank or so-called a consolidation loan in a loan company.The installment of the consolidation loan will be lower primarily because the loan period is extended.
At the end we will answer quickly: can you terminate the contract with the loan company by paying off the contracted commitment? Yes, we can pay off every loan and loan before the deadline. Sometimes this may involve additional fees, especially for non-bank installment loans. We should check the information on costs and the paragraph in the contract for early repayment of the loan.
If we can not repay the loan on time, the best solution is to inform the lender about the incident and to present the reasons for it. There is no point in waiting and delaying, because debt collection procedures can be started and it will be too late to find a way out of the situation. The worst solution is to take another loan to repay the current liability.