The current system of remuneration of employees somehow forces them to use credits and loans during their lives. Of course, there are people who have never taken the bank’s offer, but they belong to a minority. To afford a flat, car or expensive equipment, we usually decide to take a loan or a loan. When we look at the interest rate issue, we often forget about elementary concepts that involve a commitment to make a loan.
What should you not forget when making a loan decision?
Credit or loan?
Important knowledge is the ability to distinguish a loan from a loan. As agreed generally in the Polish legal system, the name of the loan should not be used interchangeably. The loan is defined as a form of cash withdrawal for a specific purpose. The borrower in his application must clearly specify what the money will be used for (the exception is a cash loan for any purpose). Moreover, only banks or credit unions are authorized to grant loans. The loan always has the character of a paid money borrowing, which means that people using this form of contracting the commitment are obliged to pay back a greater amount than it was borrowed.
In turn, the loan can be granted by anyone – also by natural persons. It is not always a paid monetary benefit, which means that it can be provided in kind and without additional costs. In the case of a loan, the applicant does not have to state the specific purpose of the money or item borrowed. However, it is worth remembering that even a loan concluded between natural persons should be in the form of a paper document, which will clearly define the parties to the contract, the amount of the loan, as well as the applicable deadline for submitting the benefit.
Good credit – what?
For a person who decides to take out a loan for the first time, the issue of costs associated with it will be very important. It is worth remembering that incurring a liability in the form of a loan entails giving away a larger amount than the one we borrow.
The amount of the loan includes, among others, the bank’s remuneration in the form of a commission or the interest rate on the loan as well as loan insurance. Seemingly it would seem that the best cash loans – wktorymbanku.pl are the ones whose repayment rate is the lowest.
Meanwhile, first of all, we should pay attention to the repayment period or APRC of the available offer. It often turns out that the Real Annual Interest Rate is far beyond the borrower’s capabilities or there is cash available on the market at a lower overall cost.