Any natural person can apply for a cash loan and can use it for any purpose. However, this goal cannot be associated with running a business, e.g. the purchase of machinery or equipment. The goal can be the purchase of a TV set, renovation of an apartment or repayment of previously incurred private obligations. In fact, however, the bank does not control the use of funds received by the borrower, so in practice it is often not possible to check whether spending is in line with the customer’s declaration.
Cash loan – costs
The costs of cash loans can be divided into 3 basic elements: preparation commission, interest and costs of loan collateral (usually insurance). The amount of costs depends on the bank’s offer, but it cannot exceed the maximum values specified by the financial market supervisor. The commission for granting the loan is charged after the loan has been paid out and can be added to the first installment, credited and incurred by the client (from own funds).
Most banks grant unsecured cash loans, limiting themselves to insurance and a declaration of voluntary submission to enforcement. Sometimes banks expect a guarantor (co-borrower), co-borrower or collateral in the form of a blank promissory note or blocking of funds on the account.
The cash loan is usually paid by transfer to the account indicated by the borrower – at the crediting bank or other bank indicated by the Customer. Alternatively, cash withdrawals at the bank’s counter are allowed. The most important, however, is the fact that in each case the funds are paid to the borrower or another person, and not transferred directly to the seller.
To grant a cash loan, the bank will expect, first and foremost, documents confirming the identity (identity card) and income of the borrower. Employed persons under an employment contract should provide a certificate of employment and the amount of remuneration. Pensioners – a copy of the document granting benefits and a copy of the last transfer. A little more formalities await those who run a business. They will have to provide, among others confirming the amount of revenues (e.g. statement of revenues and expenses in the case of persons running KPiR). In the case of smaller loan amounts or regular customers, some banks base their decision on granting a loan on the borrower’s declaration of income.
In the field of loans and cash advances, we cooperate with most of the leading banks and financial institutions in Poland
– The maximum loan amount is USD 350,000
– Loan period from 3 to 144 months
– Interest rate from 3.99%
– Commission even 0%
– Maximum actual annual interest rate of 19.99% (for selected credit products)
An example of the total cost of a cash loan for a person employed under an indefinite employment contract:
Gross loan amount: 44,830.32 USD
Net loan amount: USD 37,254.21
Loan period: 120 months
Interest rate: 9.49%
Bank commission: USD 7 576.11
Installment: 578.61 USD
The credit decision depends on the result of the individual creditworthiness examination and the credit risk assessment made by the bank, and the above example does not constitute an offer within the meaning of the Civil Code.