Non-bank Companies Offering Loans

A mortgage offering loans secured by real estate has joined a group of non-bank companies that have a Responsible Lender certificate.

When we look at the list consisting of nearly 40 non-bank companies certified by Loan Magazine, it is clearly dominated by entities providing short-term loans online. As one of the first distinctions confirming credibility and reliable approach to the client, as well as granting financial obligations on clear and transparent principles, they received the Ofin and Vivus brands. It was at the end of 2013. Over time, the group of Responsible Lenders has extended to installment loans. They allow you to improve your home budget or satisfy larger consumer needs that you would normally not be able to afford. Over the loan in the bank have the advantage that all formalities have been reduced to a minimum, and the entire process of applying for additional money takes place online. We can reach eg 10,000. PLN and pay it off for 24 months.

Business loans with a certificate

Business loans with a certificate

The non-banking market is dominated by loans granted to private individuals. However, also entrepreneurs, especially those entering the market or having a very short internship in business (banks treat such entities as higher risk clients), have a chance to obtain non-bank financing. Cryobank is drawing their hand to them, which started with a Business Loan of up to 10,000, which can be incurred from the first day of running a business, with only a personal identity card.

Responsible loans secured

Responsible loans secured

The mortgage joined the Responsible Lenders as the first brand offering mortgage loans that so far have functioned practically exclusively in banks. Everything is consistent with the law on consumer credit and safe, because the signing of the contract is carried out under the supervision of a notary public. The principle is simple: if we have several debts and we do not have good prospects for repayment, we can use the option of charging them using the loan we have just granted. Since then, we have been paying back debt to one entity, i.e. the Mortgage. We just have to decide what we’ll pledge. It must be a real estate – a house, flat, commercial premises, plot or agricultural land. We have 12 months to return the receivables, however, both the extension of the repayment period and the earlier return of the loan are at stake. In the case of problems with adjusting monthly installments, the Mortgage offers the option of using the so-called grace period, i.e. a temporary suspension of loan installments.

Hipo┼╝yczka Sp. z o. o. provides capital resources for entrepreneurs and private persons through secured financing on real estate. Our experience for many years is a guarantee of professional approach and security of transactions. What distinguishes us from banks? First of all, flexibility, individual approach and speed of decision. Our clients are for us Business partners, not petitioners. We are proud of the Certificate of a Responsible Lender, which only confirms that we pay great attention to care for the good of the customer and the stability of its financial situation. It also confirms the security of our loans. – comments Paulina Horabik, Head of the Loan Group.

A Short-term Loan Step by Step – Payday Loan

Payday loans – Short-term loans

Short-term loans, also called payday loans, are available to almost every person. The very name of this type of loan indicates that its repayment takes place in a very short period of up to 30 days. Every time you extend your repayment period, you automatically get much higher interest. Therefore, it concerns relatively low amounts, which do not exceed several thousand zlotys.

Companies that provide short-term loans offer at least two opportunities to apply for it. The first of these is direct contact in the company’s office. There are more and more outlets that propose transferring money to the borrower’s account within fifteen minutes, immediately after completing the relevant application via the Internet. Another suggestion is sending a text message to the company. Always a representative in such a situation just call you back.

Payday loans - Short-term loans

Of course, most companies providing short-term loans, on the basis of the data sent (series and ID number), check whether the client is currently not on the list of debtors. They can check it at the Credit Information Office.

The benefits of short-term loans will surely include getting the necessary amount quickly. There are also a few companies that offer the first loan for free.

The downside is much higher interest compared to other liabilities such as cash loans. Not everyone is able to cope with the loan later repayment. Therefore, you need to accurately calculate your financial capacity when it comes to settling your receivables. In addition, pay attention to pseudo-companies that offer loans. In an online environment, there may be plenty of them. After positive verification of the company, there is no reason for concern. 

The Loan Verification Fee – What is it and What is it for?

The verification fee is used by almost all loan companies, because in this way they can easily, quickly and without unnecessary formalities confirm our identity.

Although online borrowing is a very fast way to obtain external funding, we must take into account the fact that when filling out a loan application, we will have to deal with several application stages. One of them is the verification fee, which for lenders is an easy way to confirm our identity.

Limited formalities when borrowing

Limited formalities when borrowing

Borrowing an installment loan via the Internet involves several necessary steps. Each loan company has its own individual commitment system. However, almost all institutions of the non-bank sector have some points in common. Regardless of where we decide to borrow money, we will meet a similar application system. We will have to register on the lender’s website, fill out the loan application and finally make a verification transfer.

Verification fee – what is it?

Verification fee - what is it?

The verification fee is a fee that confirms our identity. It is made in the form of a transfer from our personal bank account, so that the lender can be sure that we are the person for whom we are given in the electronic application. Loan companies usually have no way of verifying the customer only on the basis of an ID card. Thanks to the verification fee, the possibility of obtaining a loan for an ID card which has been stolen or lost is excluded.

However, the verification transfer is not the most modern form of checking customer details. Some loan companies use other verification systems, such as Quick Identification, Instantor and KontoConnect. These applications only require a password and a bank login. Do not worry – the connection is encrypted, which guarantees data security. Thanks to such modern solutions, registration and submission of the application is 100% free.

Amounts required for the verification transfer

Limited formalities when borrowing

Let us not be afraid that we will have to transfer large sums to the account of loan companies. The verification transfer has a symbolic character and its purpose is not to get money from us, but only to confirm our personal details. Usually, the lender requires a transfer of 1gr, and in some cases 1 PLN, which is the maximum amount. If the loan company’s side has a larger sum than the one just mentioned, we should be careful. In the loan market, you can still find illegally operating companies that try to extort additional fees from unconscious customers. Before deciding whether to take out a loan, you must first check the integrity of the loan company.

The verification fee is a one-off expense

The verification fee is a one-off expense

We transfer the verification fee to the lender’s account only once and only at the first loan. The situation is different when it is the next time when we decide to incur liabilities in the same institution – then the lender already has our data, so we do not have to go through the entire registration and verification process from the beginning, but only complete the application. It should be noted that the verification transfer is not refundable – even if for some reason we will not be granted a loan.

We Refresh the Wardrobe for the Summer with a Quick Loan

Bomber jacket, striped dress, and maybe a small bag-postman matching any stylization? Such are the trends of 2016, if you do not have one of the most fashionable items in the wardrobe yet, you must quickly change, all the more so because your budget can support fast online loans. Have you heard about them? It’s time to learn more because they are more and more popular and available for almost everyone.

How to take out a loan?

How to take out a loan?

Online loans will not cause you any problems. It’s perfect help when it’s time to refresh your wardrobe. Do not you want to be left behind your friends? They certainly have more than one summer jacket, which fits perfectly to trousers and dresses. To take out a loan, start by looking for a good offer. It is best to use loan rankings, which will show you which proposals are worth keeping in mind and which ones should be left out. Rankings are prepared by experienced experts, so you can trust them. Also, follow the conditions, because some payday loans allow you to borrow as an ID card, while others require a bank account and a mobile number for verification purposes. Then it’s time to complete the application and wait for the money. Soon you will be able to go to the store with a full wallet to enjoy new summer stylizations.

Loans – what to watch out for?

Loans - what to watch out for?

If you want to look fashionable, not only read the terms of the contract carefully, but also watch the date when the loan you were required to pay. Tempos are given in the form of a one-off repayment, so in the next month you will have to tighten the belt slightly, but after a while you can refuse to take a trip with your friends. You can also always meet at home and watch a sad romantic comedy, and save money on the ticket and popcorn money to the drawer to settle the loan. When you repay the loan according to the deadline, you will take the next one without any problems, so mark the day on the calendar when you should do it. However, if you do not repay it on time, you will have to deal with the unpleasant consequences of untimely repayment.

If we expect that repayment of the whole loan in the next month will be too high a burden, it is a good solution to use an installment loan, for example a loan offer for loans. Such a financial product is on the one hand the repayment flexibility, i.e. the possibility of spreading the repayment for several months. The second issue is the amount of the loan, which in the case of installment loans is even 5000 PLN.

Cancel Loan – Here’s the reason’s why

There are many situations where it may be necessary to cancel a loan. But the termination of a loan has far more far-reaching consequences than, for example, a mobile phone contract. It is therefore advisable that a borrower, before he becomes active accordingly, aware of the consequences and planning the project exactly.

Cancel a loan: the “classic” reasons

Cancel a loan: the "classic" reasons

Let’s start with when it makes sense to write the notice for a loan. There are four reasons that are so often invoked that they are often referred to as “the classic arguments”:

1st divorce:

For example, a partner alone can no longer hold the house. Or there is a common desire of both spouses to break up a joint loan. There may also be a written agreement on what to do in the event of a marriage with a joint loan.

2. Falling lending rates:

Anyone who has an old loan certainly pays too high interest. A rescheduling therefore makes sense. Before it can be rescheduled, the old loan is to be terminated.

3. Change of workplace:

A job change may require the termination of a loan for several reasons. Anyone who earns more wants to carry out a rate adjustment in his favor and therefore a rescheduling. If you earn less, you want to pay less in the future. You may also move to another city and therefore have to sell your house or apartment in the old place of residence in order to be able to pay for another home in your new home. For the original real estate loan then a termination must be pronounced.

4. Life changes significantly:

If the life situation changes significantly, it may also be necessary to cancel a loan. For example, those who marry might want to trade a single loan for a joint loan. At the death of the partner, it may be necessary to go the exact direction in the opposite direction. Especially with a long-term loan, the change in the life situation is a statistical probability: To avoid having to terminate such a loan every time, many banks offer loan models that can be flexibly adjusted – for example through high special repayment options or optional cash injections and installment pauses. When planning a loan, such models should therefore be high on the list.

Cancel a loan: Is there a legal protection against dismissal?

Cancel a loan: Is there a legal protection against dismissal?

Banks often point out that the termination of a loan is of course possible – just against payment of a prepayment penalty. Often, therefore, the question is asked whether there may not be a legal protection against dismissal for loans. The German Federal Financial Supervisory Authority has accepted this and has put together five scenarios for which protection against dismissal exists:

1. The loan runs longer than the fixed interest rate:

Just under real estate loans, this credit model is standard. Often there is the accusation that the initially low interest rates are really just “lock offers”. Later, the “bill” will be presented in the form of significantly higher connection interest. In fact, before it is a protection against dismissal: During the interest rate commitment may not terminate, after the expiration of that according to § 489 paragraph 1 no. 1 BGB, but with a one-month period already. But beware: Previous agreements can cancel this right to terminate. This also applies to all other deadlines that are presented here.

2. The loan has a variable interest rate:

Many borrowers like to opt for a variable rate loan because it seems to hold the promise to switch to cheaper deals anytime. If the game with the variable interest is too hot, may be pleased about a protection against dismissal: According to §489 paragraph 2 BGB such credit models may be terminated with a notice period of three months.

3. A loan has a fixed interest rate of more than ten years:

This case has already caused some confusion: loans can be terminated after ten years with a period of six months. The problem is, as already mentioned in subsection 1: no cancellation can be made during an interest rate commitment. Dufol has therefore clarified the current view of law with reference to §489 (1) No. 2 BGB (German Civil Code): A right of termination after ten years does not exist for such a loan. Instead, you can cancel the end of the fixed interest rate. The notice period of six months remains.

4. Consumer credit agreements:

These are the standard installment loans that most people use over and over again. Basically, these contracts may be terminated. Unless otherwise agreed, the notice period is one month. With previously defined terms of the respective loan, which is standard, the borrower may receive a prepayment penalty. According to § 502 BGB, this amounts to a maximum of one percent, if the credit agreement runs for more than a year. If the remaining term has already fallen below one year, then a maximum of 0.5 percent prepayment penalty may be levied.

5. The loan is secured by a mortgage or a mortgage:

Canceling a loan secured by a mortgage or a mortgage is difficult. Actually, the legislator has determined that a corresponding step is not permitted. Exceptions are “exceptional circumstances” that necessitate a sale of the property in question. The termination of such a loan, however, is expensive: Basically, the lender may collect a prepayment penalty. For real estate loans, however, the “1 percent” limit applies. The lender may set the border himself – accordingly, the penalties are often very sensitive.

Cancel a loan: A sample invoice for prepayment penalty

Cancel a loan: A sample invoice for prepayment penalty

Suppose the case, a person fulfills the dream of the new car and takes for 20,000 euros credit over seven years. After three and a half years remains a credit balance of 10,000 euros. Through an inheritance, however, the person has the money on the side and therefore would like to pay off the loan early. The bank may charge 1 percent prepayment penalty – that is 100 euros.

Put the case, the inheritance comes only after six years and eleven months: The remaining debt would be about 3100 euros: The prepayment penalty would be in this case accordingly 31 euros. It would make sense to wait one more month for the loan to be canceled: the remaining debt of the loan would fall to about 2900 euros, and half the prepayment penalty will be halved. To pay would be still 14.50 euros. Even with the interest still payable for the additional month, the savings should be around 15 euros.

The example shows two things: On the one hand, a maximum early repayment penalty of one percent sounds comparably low. In fact, the amount in absolute terms, however, can be very high: Especially for debt, this is to be considered, because with those the penalty payment must be made practically always.

On the other hand, the timing of the termination of a loan is very important: In particular, when you are close to the limit of one year, it almost always makes sense to wait, so that the reduced prepayment penalty is accompanied by a significant savings. The rule of thumb is that anyone less than six months away from the one-year deadline should wait to be dismissed.

To terminate a loan agreement correctly

To terminate a loan agreement correctly

Finally, it is about the question of how concrete a loan is to terminate. Generally this step has to be done in written form. It is advisable to hand in the letter personally in the branch and to have the receipt acknowledged or to send it by post as a registered letter with acknowledgment of receipt. So you can make sure that the lender has actually received the notice. In addition, you can prove that you have terminated the loan within the period. The following must contain a letter:

Name, address and other contact details of the borrower
Name or name (ie Sparkasse Köln or similar) of the lender
Date of termination (not equivalent to the date of writing!)
Contract or credit account number

The following pattern can help:

Address of the borrower location, date
Address and name of the lender

Dear Ladies and Gentlemen of the XXX,

With today’s letter, I terminate my loan agreement signed with you on XXX (date of completion in the form on time XXX (termination date). My loan has the contract number XXX. The original loan amount was XXX.

With this letter I give you the authorization for direct debit to debit the remaining loan amount from my account. The account details are:
Name account holder
BIC (for a foreign account)

I kindly ask you to confirm the termination immediately. Please also tell me how much of the remainder of the loan is to be cleared, how it is composed and when you will use it.

Yours sincerely

Conclusion: Nothing rush in the credit termination

Conclusion: Nothing rush in the credit termination

As previous lines illustrate, it is relatively easy to cancel a loan. However, the whole process needs some preparation. Otherwise, there is a risk that extremely costly mistakes can be made. At the beginning there are some central research works: For example, is there a legal dismissal protection, which allows to terminate the loan without penalty? If this is not the case, the next question to ask is: is the time for a loan cancellation favorable? Often it would make sense to wait quite some time to achieve the reduced prepayment penalty or the moment when legal protection against dismissal exists. Especially with rescheduling, which only make sense if the debt is reduced by them, the importance of the right timing is hard to overestimate.

Therefore, plan your credit cancellation in peace, read all relevant documents again and work with a calculator to calculate different scenarios. Your wallet will thank you.