Category: Uncategorized

What is Cash Loans?

Our cash loan statement presents only currently available loans – all data are updated and updated on a regular basis. The current offer of cash loans in one place is a good opportunity to compare cash loans, taking into account all relevant parameters: interest, interest, costs, minimum and maximum loan amount, APRC, cash withdrawal form, promotions and bargains. see for further notes

Definition of cash loan

Definition of cash loan

A cash loan is a financial service provided on the basis of a written contract concluded between a financial institution authorized to grant a loan and a borrower. In the contract, the lender undertakes to transfer a specified sum of money to the borrower’s disposal, and the borrower undertakes to use the loan in accordance with its purpose and return the borrowed amount increased by the lender’s remuneration, i.e. commission and interest.

In Poland, the right to grant loans is limited to banks, branches of foreign banks, branches of credit institutions, cooperative savings and credit unions or other institutions, which have been specified in the Banking Law. Although the terms loan and loan are commonly used interchangeably, however, these are different terms in the light of law – only entities defined in banking law can grant credit. Granting loans by unauthorized institutions is against the law. The situation is different when granting loans to which many non-bank companies and institutions are entitled.

The loan agreement contains detailed arrangements relating to all aspects of the loan. These include: date and place of signing the contract, specification of parties to the loan agreement, amount and currency of the loan, terms of loan activation, purpose of the loan and repayment period, commission and interest rate and terms of interest rate change, type of loan security, defining the method and time of making the funds available financial statements, information about the consequences of the breach of the contract and the possibility of withdrawal from the contract, as well as any individual arrangements that occurred between the parties to the loan agreement.

The decisive opinion on the possibility of granting the loan belongs to the entity that grants the loan, which is also entitled to control the use of the loan. The creditor is not obliged to grant a loan and may refuse to grant credit, even if the applicant for credit possesses a positive credit rating.

Forms of cash loan security

Forms of cash loan security

In order to ensure maximum certainty regarding the recovery of the funds made available, the lender may establish collateral for the cash loan. A popular form of security is a surety, which consists in a third party’s obligation to repay the borrower’s liabilities in the event that the borrower does not meet the terms of the loan agreement. Other forms of collateral are: blank promissory note, bank guarantee, loan insurance or property pledge (transfer of title, mortgage).

Interest on a cash loan

Interest on a cash loan

The interest rate on a cash loan is the factor that generates the highest costs that must be incurred in connection with taking out a loan. In the case of long-term loans, even the digits located in the second decimal place in the value of interest even have a bearing on the total amount to be paid. Although there are loans with zero interest, it is usually a promotional offer, and standard interest rates range from 5% to 20% on an annual basis.

When calculating the general cost of a loan, it is worth reviewing the so-called APR (Annual Actual Interest Rate), which includes the total cost of the loan, including all commissions, additional fees and more.

The amount of the loan installment

The amount of the loan installment

It is obvious that the amount of the loan installment depends on the amount of the loan and the repayment period. In the case of a loan with zero commission and zero interest, the monthly installment is the sum of borrowed money divided by the period (counted in months) in which we will give back the money. We must add commission and interest to this basic amount. As a rule, the bank offers two options for how to add these fees: fixed installments or decreasing installments. In the case of fixed installments, the total amount of interest accrued over the entire loan period is divided by the number of months and so we receive a monthly additional amount (interest), which should be added to the basic repayment amount (principal). If we choose decreasing installments, then each month the bank will calculate interest on the amount to be repaid, and thus in the initial period higher interest will have to be added to the repaid principal, which will gradually decrease to zero at the last installment.

Financial Problems – How to Deal with Debt?

Financial problems can get us all. Continuous expenditure means that borrowing will be unavoidable and you should remember the consequences of unpaid debts.  It’s only half the month and your bank account is running out of money. You have not yet had to pay for the bills. In this situation, it is worth considering your expenses and start working. Borrowing is not always a good option, so it’s a good idea to plan your budget in advance. More of this story:

What are financial problems?

What are financial problems?

In recent years, we are increasingly faced with the problem of debt in Poland. Such a difficulty can affect every one of us, which is why it is worth considering earlier on maintaining financial liquidity. There may be many reasons for problems with the lack of cash – all we need is unexpected expenses or we will lose our job and suddenly we will find ourselves in a financial hole. It is best to think about such crisis situations in advance and to prepare a financial cushion.

Home budget planning brings many benefits. Thanks to this, we know how much money we have to spend on bills and the most necessary things, and how much will be left for our own pleasure. In a good situation, there are people who can save money and put off the previously planned amount every month. However, the first signal to reflect on your financial condition should be the fact that before payment we have to tighten the belt and give up putting off savings.

Usually, when we lack money, we seek help from our family or friends. If we can not count on them, we are indebted in financial institutions. We are taking out quick loans online and we are struggling with debt relief for many months. We are not talking about financial problems when we have one loan on our account, which we repay in a timely manner. The worst situation is people who do not have enough money to pay their debts again. This leads to a vicious circle from which it is very difficult to leave.

How to get out of financial problems?

How to get out of financial problems?

When we have induced debt, we usually think about how to get out of a difficult situation. As we wrote earlier, the worst possible solution to the problem is to take another loan to repay the previous one. In this way, we fall into a spiral of debt, and the costs associated with interest on loans are constantly increasing.

The first step to debt, in addition to reducing expenditure, is to stop using credit cards and repay the debt as soon as possible. We spend the money from the card with a lighter hand than it is in the case of cash payments that we have in our wallet. Usually, we do not know exactly what budget we have on the card, so we unknowingly exceed the limit. They work insidiously if we spend too much. Each subsequent payment is intended to pay off the debt, and we are again left without a livelihood and use the card again.

It is also a bad idea to use the overdraft account when our financial situation is not the best. Debit arises when we pay more money than we have on account. We can compare it to a quick loan with interest accrued. It is one of the more expensive debts, which is why it is not worth using.

If all this is not enough and we are unable to get out of financial problems, we must increase our income and minimize our expenses. In this case, the simplest solution will be to sell unneeded items. We can make a list of equipment that we do not use and put it on the website with ads. Another option is to find additional, odd jobs.

The most serious consequences of non-payment of debts

The most serious consequences of non-payment of debts

Each commitment incurred must be repaid on time, but wondering what will happen when we run out of cash to settle the debt? What consequences do we have to bear?

First of all, additional interest is charged for each day of delay. Debt is growing more and it is harder to pay off. If he goes to court then the court costs are still added to the whole of the debt.

A loan company with whom we are liable to repay the loan may enter us in the register of debtors. This reduces the creditworthiness and is an obstacle when you take out another loan.

The most serious and final consequence is the bailiff’s execution. At this stage, the debt is sold to a debt collection company. The debtor is informed about it, so he can negotiate repayment terms. We no longer have an influence on your situation when the bailiff deals with the problem. It enforces property in such a way that the debt is completely settled.

Loan Despite Debt and Private Credit

At the house bank you ask for a loan despite debt and private credit entry in vain. Each request is rejected because of lower creditworthiness and the applicant often has to wait a long time for the rejection. But even with debt, a loan can often be the only way out, not to get even deeper into the debt trap and to take on existing debts even more debt in purchasing.

The free financial market allows for the taking out of a loan despite debts and private credit entry, without the applicant’s credit rating or financial situation would matter. Instead of relying on the credit rating, private financiers and independent financial intermediaries are guided by the current collateral that the borrower can offer.

Save costs through an online comparison for loans

Save costs through an online comparison for loans

Since only a cheap loan is fully convincing and meets the high expectations, the decision for a provider should always be preceded by a free online comparison. Here, prospective buyers should not only face the interest and fees of various offers, but also consider the contractual conditions and the flexibility during the term.

If the focused loan meets its own expectations despite its debt and private credit entry and, on top of that, convinces with favorable interest rates, there is nothing standing in the way of a request for a loan with fast approval and timely payment.

The approval period for the online loan is within 24 hours, whereby the payment is made immediately after the approval and the borrower after the statutory 7-day waiting period on the disbursed sum disburse and pay bills, can make new purchases or settle existing debts.

Possible collateral on the free financial market

Possible collateral on the free financial market

Independent financial service providers that work primarily with foreign banks and lenders, but also private lenders want the credit despite debt and private credit information no existing credit rating. However, since hedging is also required for these loans and is seen as a prerequisite for approval, applicants can hedge with different means and offer the lender an adequate consideration in return for the loan amount.

Above all, real assets, but also capital-forming insurance or savings deposits are often taken as a pledge for a loan. However not every applicant for a loan despite debts and private credit entry has sufficient assets in sufficient amount.

With a guarantee from friends or relatives, a loan will be granted just as quickly and the guarantor will be held liable if no payment is made. Guarantees can also be taken over by business partners and thus also be chosen for a higher loan for self-employed and entrepreneurs. The free financial market offers numerous attractively designed credit models.

Simulate Mortgage Loan


Returning to the articles on the European Standardized Information Sheet on Housing Credit, we will look at the nominal rate and effective rate fields. Obviously I recommend reading all the articles in the Simulate Mortgage Series, if you have not already done so, namely:

  • Simulate Housing Credit – Initial Data;
  • Simulate Mortgage Loans – Interest Rate;
  • Simulate Mortgage Loan | European Standardized Information Sheet – Part I

Nominal Rate


As we had discussed in the previous article, the mortgage loan proposal consists of a fixed rate and a variable period. It is known that the rate period is determined by the sum of the 5-year swap rate observed on the business day prior to the date of conclusion of the contract plus a spread. After the first 5 years the rate will correspond to the sum of the Euribor of the month prior to the interest accrued plus a spread.

In our case we have a fixed rate plus a spread of 3.577%, that is, 1% higher than the variable rate. The dilemma of the fixed or variable rate in housing credit arises from the impossibility of determining whether the variable rate will increase enough for the fixed rate option to be advantageous.

It is known that if the variable rate increases 1% which will have an equivalent situation, but the time that will take to happen will determine your gain or loss by such a choice.

Looking at the spread, we find that the mortgage credit spread is 2.5%, which will be subsidized by 0.9% in the first 5 years and by 0.8% in the following years as long as the client subscribes and maintains assets of three products and services to be added to the salary domiciliation;

  • A payment order;
  • A credit card with average usage of 100 euros per month;
  • Have a capital status in debt on the date of payment of the installment of 1000 euros;
  • To have an average quarterly balance in financial investments of 1,000 euros, excluding savings products;
  • Possess savings products with a balance of more than 1,000 euros;
  • Maintain a periodic plan of monthly subscriptions with a minimum amount of 25 euros;
  • To have a protection insurance

Still within the field of interest rate we can check the penalties if you do not reimburse the principal and / or interest on the agreed dates represented by the surcharge of arrears of 4% and also the tax benefits for contracting housing credit for acquisition, construction or improvement of real estate for own and permanent housing.

We can thus conclude that the field of interest rate, in our case in particular, returns information relevant to decision making and comparison with other proposals. It also provides us with information so that we can find answers to the following questions common to most customers:

Would You Like To Always Pay The Same Benefit?

Pay The Same Benefit

The existence of a fixed rate period for 5 years is intended to provide security and stability to the customer, but may be a more expensive option.

Would you like a lower spread ?

As you can verify is possible the existence of a promotional spread, however, the conditions for obtaining and maintaining such spread are strict. A slip may mean having a low and a high spread.

If you want to have the lowest spread in the market we suggest you check out the Daisy Miller housing loan simulator. It is possible to save money with your housing credit by simply having some consultation and negotiation.

Of All Conditions By Which Should I Choose?

To own the promotional spread you would need to have four products or services, one mandatory (domiciliarity of payroll) and three of a series of options identified above.

Of all the options we can identify one that will not mean an increase of charges, the domiciliation of a payment order, such as water, electricity, gas, etc …

However, the rest mean charges for the customer, so you should choose according to your needs. For example, unemployment insurance has never been as obvious as it is today, although its premium is extremely high.

Similarly, planning for retirement through a retirement savings plan seems to me an interesting strategy if we take into account the state of Social Security. In this case, the aspect to consider is only possible charges that will exist with the subscription and management and what kind of remuneration the product offers.

The option to have a debt capital of 1,000 euros only makes sense if you are already a customer of the bank and even have an active consumer loan. However this option is temporary because your consumer credit will have a shorter term than your housing credit, so in the future the most likely is that you will not comply with this condition.



The effective annual rate and the revised annual effective rate allow us to ascertain the true cost of housing credit and compare with other simulations.

If you want more information about this type of fees, I recommend reading the article TAN, TAE, APR and TAER, as it will allow a better understanding of these indicators.

TAE and TAER in our case, has a point that is interesting to focus on, namely, the presentation of the value for these indicators without considering life and housing insurance.

Taking into account that the TAE reflects all the costs of housing credit, for the less attentive customers, comparisons between wrong proposals may arise, since we present a APR in our simulation that does not incorporate life insurance and housing.

As you can verify our case, the difference is approximately 0.7% which makes all the difference. So here we have an excellent example that a careful reading of the European Standardized Information Sheet will make all the difference in choosing the best housing credit simulation.

Loans for the Self-employed Without Collateral

Taking out loans for self-employed persons without collateral at German banks is rather difficult due to the precarious preconditions of the borrower. Collateral is an integral part of the international credit system, because it protects the bank against a default of the borrower, and they count in advance to assess its credit rating. Read for a critique

The self-employed have inherently a very uncertain and fluctuating financial situation, because the company’s success can be reduced at any time, as well as the order situation of freelancers. As a result, it is very difficult for the credit institution to calculate with a fixed credit rating and a corresponding income, but must try to find an average of past revenues from self-employment.

At the same time, the bank must always bear in mind the risk that the order situation may deteriorate at any time and thus, in direct reverse terms, also reduce the income of the self-employed. Therefore, self-employed loans without collateral are difficult to obtain, since collateral brought in, aside from their own receipts and supporting documents, could be used to repay the loan in that particular case.

Popular collateral that is put into loans are for example used guarantors or the vehicle registration, which is stored at the bank for the duration of the loan. In the latter case, the borrower could, of course, continue to dispose of his car, the vehicle registration he gets back after full repayment of the loan.

Without collateral also no bank loan

Without collateral also no bank loan

A bank loan is always bound to collateral of various kinds. On the other hand, this is the case for private loans, where loans are generally made by people from the friendly or related circle, which is why this loan is less linked to the creditworthiness of the borrower than to the individual relationship.

Therefore, a credit at a private level is always associated with a good relationship, then loans for the self-employed without collateral are also possible here. Alternatively, there are portals of private credit, in which then may need to prove a rough measure of their own creditworthiness, as the lenders spend the loan in this case to achieve a return on interest rates.

These private loans among strangers are often associated with higher interest rates, as the loan is of course provided by the private assets of the lender, which is why he wants to secure the best possible lending. Under certain circumstances, the money can also be earned on a part-time job, if it is not needed immediately and temporally the possibility exists. Ultimately, a loan will be entirely possible without collateral but only in a private environment.