Who can borrow money in Poland?

The first institution that we associate with borrowing money is the bank. If we listen to the emotional reactions of the media to what they do, parabanks, we can come to the conclusion that only banks can legally grant loans. This is the wrong conclusion. Who else can lend money to others in Poland?

This may be a big surprise for some, but anyone can give loans to Poland. As long as he owns the cash borrowed. It doesn’t have to be a bank, it doesn’t even have to be a company – loans can also be granted to private individuals.

It is worth looking at how lending is regulated by law. Well, the basis of this activity is four short articles in the Civil Code. In addition, there are several other legal acts that regulate lending activity in its various manifestations.

The most important of them is the Consumer Credit Act of 2011, which refers to loans granted as part of business activities and includes, among other banks, cooperative credit and savings banks and the so-called parabanks and banking law.

Who can grant a loan?

money

Everyone can make loans, but not everyone does. A market has emerged around this service, which has been dominated by several types of institutions:

  • commercial banks,
  • cooperative banks,
  • cooperative savings and credit unions,
  • loan companies (so-called parabanks, e.g. Provident but also much smaller, local players),
  • employee loan unions in larger companies and institutions (especially state-owned),
  • social lending portals

In addition, loans can be granted by private individuals who do not run a business. We can borrow from family, friends, and strangers. It also works the other way – we have the right to grant loans to others or to set up a business that specializes in lending cash to others.

Granting a loan – what to remember?

money

However, it is worth remembering several important issues:

1. A loan agreement of up to USD 500 may be concluded orally, above this amount a written or electronic contract is recommended,

2. Polish law limits the amount of interest that may be charged to the borrower – for all types of loans and credits it is four times the Lombard rate set by the Good Finance (currently 18% per annum),

3. While there is a very precisely defined concept of maximum interest, the law leaves much more room for maneuver when it comes to other fees related to e.g. granting a loan or extending its repayment date – it is worth remembering this, regardless of which side of the contract we are found

4. If the loan is granted as part of a business, it is subject to the Consumer Credit Act, which imposes a number of obligations on the company, e.g. the need to inform the borrower of all costs of the loan, including the actual annual interest rate,

From the client’s point of view, the lender’s security and credibility are also very important.

Banks and credit unions are under closer state supervision than other lending companies – they are more stable, they are less likely to abuse and it is easier to collect any liabilities from them.

Their disadvantage for some customers may be very rigid procedures (e.g. related to the assessment of creditworthiness).

Social loans – is it worth it?

cash

An interesting phenomenon in this market is definitely social loans (e.g. Coconut) – it is an offer for those who need cash as well as for those who have excess cash and are looking for an unusual way to invest surpluses.

Technical and legal matters are taken over by the intermediary portal in granting social loans.

Either way, if we want to borrow money, we are not condemned to offer banks. He is certainly a large and important player on this market, but apart from him, there are several other institutions and many private individuals ready to lend us cash in exchange for fees and interest.

Lifetime annuity and reverse mortgage loan – a good alternative to saving for retirement?

To put it mildly, the Polish pension system does not sketch promising prospects for those who end their careers. Many of them also don’t have any savings.

What to do in that case? Perhaps the solution would be an inverted mortgage or annuity offer. The more that any day both will gain their legal form.

The idea of ​​both products is simple. A person reaching the age of 65 enters into a transaction in which, in exchange for the renunciation of ownership of an apartment or house, he receives a cyclical (usually monthly) pension in this respect until the end of his life.

Annuity distinguishes from a mortgage

cash

Annuity distinguishes from a mortgage is distinguished by the fact that in the case of the former, the buyer of the apartment (bank, fund, insurance company) becomes the owner of the property as soon as the contract is signed.

On the other hand, an inverted mortgage gives the heirs greater room for maneuver – the transfer of ownership takes place only after the death of the rentier. So they can decide to pay off the mortgage and keep the apartment.

Both solutions seem to be interesting propositions for retirees who do not have savings in old age (according to Good Finance, as many as three-quarters of Poles do not have them), allowing them to cash their only capital – a flat or a house.

So much in theory. How does it look in practice? What should you remember when signing the contract? Are we entitled to legal protection? We invite you to read.

A few years of pensions in practice – under the microscope of GFIC

money

Lifetime annuities have been in Poland since 2009. At present, they are offered by 7 entities. Despite the potential of this financial product, the scale of the phenomenon is rather marginal so far (until April About 400 contracts were concluded).

This may be largely due to the non-regulation of this form of financing in the law, which, unlike standardized financial products, allows companies to fortify contracts for survival with numerous, sometimes dangerous conditions for the pensioner.

This state of affairs has recently been criticized by the Good Finance Investment Corporation (GFIC), accusing mortgage funds of numerous irregularities in the design of contracts and misleading advertising folders.

According to GFIC, entities offering annuities have deceived potential clients in advertisements, including by the fact that they will pay rent for them, or emphasized the possibility of the property returning to the borrower when the company failed to pay the pension on time. However, none of these promises were legitimate.

The Office also warned that the current legal status, or rather the lack of it, results in the lack of sufficient security of the client in the event of the company’s bankruptcy – which may even result in the loss of a roof over his head.

There were also peculiar provisions in the agreements, for example prohibiting the residence of other people, e.g. family. In total, GFIC found irregularities in the offers of as many as 5 out of 7 funds operating on the market and appealed for quick changes in this respect.

Luckily, the report coincided with the adoption by the government of provisions for two laws: opening the way to the market for reverse mortgage offers and just introducing regulations on life annuities.

What will the new legal regulations bring?

cash

As we mentioned earlier, an inverted mortgage postpones the acquisition of the mortgaged property until the client’s death. The government draft specifies that heirs will have up to 12 months to repay the loan and retain ownership of the apartment.

Despite the fact that it is by nature a product addressed mainly to older people, the Act does not provide for age restrictions.

Therefore, the reverse mortgage will be available to people of all ages, which is to have a positive impact on its popularization. Skeptics may also be encouraged by the fact that it will be a banking product, which is under the tutelage of the Good Finance Investment Corporation.

Banks will have to value the mortgage at market rates and the condition of the premises. The amount of the benefit will depend on this. However, it is difficult to give even an estimate of it, as the amount of the benefit also depends on the length of life.

However, you can not count on the benefit of 100% of the mortgage value – real estimates say about 50% of the price of the apartment. It is also important that the borrower retains the option of premature repayment until the end, and his benefits will not be subject to income tax.

However, we should remember that after the conclusion of the contract, we will continue to have the cost of maintaining the premises, i.e. rent, renovation or insurance against random events.

New old annuities

money

The second law seeks to improve the rules governing endowment contracts criticized by GFIC. Customers are to gain special legal protection in the event of the bankruptcy of the benefit paying company.

The mortgage will first go under the gavel, and when the bidder is not ready to buy it for the required amount, the premises will be returned to the renter (let us remind you that in the case of annuities, the customer relinquishes the ownership of the apartment or house).

Even if a buyer appears, the act will guarantee the rentier an absolute right to live in the apartment until his death, without the possibility of eviction.

It is worth mentioning that although the transfer of property rights is irreversible, under certain conditions, the recipient will have the right to terminate the contract – although the property will not be returned, the company will be required to pay the whole benefit once, with deductions set out in the Act.

Such a condition may be, for example, a situation when a company fails to pay payments to a pensioner on a continuous basis. The project also introduces strict information requirements to counteract ‘colored’ advertisements.

Credit for the repair of apartments, cars, houses, housing

 

The house is a small fortress where you can hide from problems, where they always love and wait. This is a place where you can feel protected. That is why the house should be special and bring joy. This is facilitated by the appearance of the housing, namely, high-quality internal and external decoration. But the cost of materials is so high that most often either we buy lower-quality materials or refuse to repair at all.

With us you can get a loan for repairs

With us you can get a loan for repairs

The best solution to this problem is to take a loan for repairs. But traditional banks have their own procedure for issuing credit funds, it will take a long time, it will require a waste of energy, and it’s far from the fact that in the end you will generally receive a loan. Therefore we offer online lending services on convenient and loyal terms.

  • your apartment
  • private house, cottage
  • cottages
  • housing
  • short-term auto repair loan

We give loans for repairs to individuals

We give loans for repairs to individuals

 

All you need to apply for a loan is Internet access and twenty minutes of free time. Making loans for repairs has never been so affordable as with us. You can get a loan in the required amount and for the period that is convenient for you.

  • with bad credit
  • without income statement
  • over 18 years old
  • seniors

It doesn’t matter how much you get or how old you are. This is not key in obtaining a loan for repairs from us. The main thing is that money should be available to everyone and immediately when it is needed.

Conditions for taking and repaying a loan for repairs

Conditions for taking and repaying a loan for repairs

After deciding to take out a loan to repair the apartment, you do not have to stand in lines and carry folders of documents for verification. Simply fill out a short form, and then very quickly see the replenishment of your card for the full amount of the loan. To obtain this type of loan as a consumer loan for repairs, you will need:

  • Set the amount you need
  • Determine the length of time that suits you to pay the loan
  • Fill out an application for a loan
  • Check your credit card
  • Within 20 minutes to get a loan for home renovation on your bank card

After the expiration of the specified period, you need to repay the loan. This can be done in any way convenient for you. You don’t even have to go to the bank specifically for payment. You can go online and pay off debt directly through your personal account. Repayment of a loan is also possible at any bank or terminal. Getting loans for home repairs is now much easier and more affordable.