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 http://hypnosemontreal.net/bad-credit-installment-personal-loans/ for further notes
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
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
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
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.