Poles do not have much knowledge about financial products and get lost on their market like children in the fog. They wonder, for example, what the loan loan payday really is. We have just prepared an article for them, which should dispel all doubts in this topic.
The basic difference between a loan and a loan
The loan is taken up for a larger amount and longer, and the loan for a low amount and short time. The loan can be drawn from a thousand to several, a dozen or even several dozen thousand zlotys. In many cases, it is virtually impossible to make a full one-off payment, which is why it is usually spread out into regular installments – equal or decreasing, weekly or monthly. The total loan period can range from several months to several or a dozen or so years. A loan can be obtained for an amount of one hundred to two and a half thousand zlotys, for a period from one day to a maximum of three months. It is repaid completely on the date specified in the terms of the loan agreement. Sometimes you can move the day of repayment by several days, two weeks or a month, for paying an additional fee.
Another difference between a loan and a loan
The availability of both forms of financial assistance. The loan is a financial product intended for non-indebted individuals who earn a steady income, who can boast of good history at BIK, high scoring and adequate creditworthiness. The loan, on the other hand, is a financial product available to all adults who are citizens of Poland, possessing ID card and PESEL. They should earn a steady income, but they do not really have to. They may have a negative history in BIK and BIG registers, because the decision to grant a loan does not always depend on the result of verification in these databases. In practice, this means that the loan is available to everyone – for those working, running a business, students, pupils, the unemployed, retirees and pensioners.
The next difference between a loan and a loan
Elements that make up the total amount to be repaid. In the case of a loan, it is the sum of its amount, commission and fees for its granting, as well as interest calculated on an annual basis according to a fixed interest rate. In the case of a loan, the total amount to be repaid is the sum of the loan cost and the commission for the loan. Interest on debt is calculated only after exceeding the repayment date.
A loan and a loan are two different financial products.
They differ in the amount of financing, time and method of repayment, elements constituting the total amount to be repaid and availability for various groups of recipients.
Unfortunately, these products are often confused, also by loan companies, lending institutions and banks. Loan offers at banks may in fact be loan offers, and loan offers in non-bank companies with loan offers. You should judge for yourself what they really are to avoid unpleasant surprises.