20 Mar

Installment loan and credit line – Differences & advantages and disadvantages

In terms of credit, terms are often used that are incomprehensible to laypeople or cause confusion, including the two terms installment credit and credit line. Both are technical terms for loans that are made available to private individuals by financial institutions. However, there are enormous differences between them, which you should definitely consider when concluding your loan contract.

These types of loans are the most commonly used financial products by consumers. They are also known as personal loans or bank loans. While a credit line is only offered by a few banks, almost all of the more than 200 banks operating in Germany offer installment loans. An installment loan is a loan that is provided by the bank to the borrower. This loan has a contractually agreed term during which it must be repaid. Terms of 12 to 120 months are common. Most installment loans must be repaid during the term with constant installments called installments. With some loans, however, the amount of the installments can depend on the general interest rate development and therefore fluctuate.

 

What are installment loans used for?

installment loans used for?

This type of loan is used to finance specific objects, such as furniture, electronic devices or even vacation trips. Real estate loans and car loans are installment loans with a special purpose. Due to the purpose limitation, the conditions for this special type of installment loan are better than those for loans that are intended for free use.

 

What is a credit line?

credit line

Framework credit is often also called an on-demand credit. A credit line is based on a contract that the borrower enters into with the financial institution. The bank grants the customer a loan, which he can draw up to the contractually agreed amount. How much credit of the granted credit line the customer draws on is up to him, since there is no minimum amount for the credit line. You only have to pay the contractually agreed interest for the amount that you actually used. When it comes to repayment, there are also big differences to the installment loan. Some banks require a certain minimum amount per month, the amount of which depends on the amount drawn from the credit line. Others even waive this minimum repayment and only request that the interest be paid.

 

When is an installment loan suitable and when is a framework loan?

When is an installment loan suitable and when is a framework loan?

An installment loan is particularly suitable for planned purchases where you already know the specific amount. This financing option offers low interest rates compared to other loans.

The credit line, on the other hand, is a cheap alternative to a credit line or credit card, since the interest rates are much lower. Once approved, the credit line is available at any time. Compared to a credit line or credit card, the credit line is much higher. Framework loans are ideal for customers who need to be financially flexible, for example for traders and small business owners who have to buy raw materials or goods regularly and do not want to apply for a new loan every time.

 

Advantages and disadvantages of installment credit and framework credit

credit loan

 

What are the advantages of an installment loan?

With an installment loan, you can precisely plan your financial burden. The loan agreement clearly states what the monthly rate you have to pay is. The rate already includes the cost of interest and fees. You can also get installment loans very easily. An ID card is usually sufficient for small amounts of just a few hundred dollars. Many retailers offer an installment loan such as zero percent financing if they sell certain products with financing. However, the dealer usually does not undertake the financing himself, but works with a bank. Another great advantage of installment loans is their easy comparability. On numerous comparison portals on the Internet, you can compare the offers of dozens of banks and view the interest rates and conditions in detail.

If you are employed and your income is above the garnishment-free limit, you do not need any additional collateral for an installment loan because the bank can use your attachable income as security.

 

Disadvantages of the installment loan

installment loan

If a long term is chosen for an installment loan, the monthly charge is minimal. This entices consumers to use several loans at the same time. If unforeseen circumstances such as

  • Accident,
  • Illness,
  • Unemployment or
  • divorce

changing circumstances, it is not uncommon for debtors to default on payments. The result is a credit record ruined for years that makes any borrowing impossible or even legal measures such as garnishment or enforcement.

 

The credit line and its advantages

A credit line is significantly cheaper than a credit line. The offers currently range from 2.99 to 6.55 percent interest and the maximum loan volume of 1,000 to 100,000 dollars. Unlike a overdraft facility, a framework credit is not linked to a checking account. Regardless of this, the money is freely available at any time. That makes this type of loan very flexible. The minimum repayment is just as flexible. It almost always accounts for only a small percentage of the loan drawn.

 

The credit line and its disadvantages

The credit line and its disadvantages

While you can apply for an installment loan from almost every bank, there are only a few banks that offer credit lines. Since a credit line is much larger than an average overdraft facility, the requirements for the borrower are much higher. If you want to take out a credit line, you must have an excellent credit rating and a good income. Not everyone can get this type of credit.

28 Aug

How Much Does It Cost To Lease?

Are you considering leasing a car? And are you not sure about the price? Then you can get help here. A lot of people actually want to lease and even more people can benefit from it, even if they don’t realize it. The reason for this is that many people think it is super expensive to lease, but such is not always the case. Here you can get some specific advice and figures, so you can have a realistic relationship with it to lease.

 

Leasing prices today

Leasing prices today

In the last few years, it has become a little harder to give a specific answer on how much it actually costs to lease a car. The biggest reason for this is that the opportunities have become many more. For today, you can choose from countless car models and sizes.

This has also led to really great demand for the very small city cars. However, these are also the cheapest to lease. For example, you can lease a small Peugeot model for around £ 1,800 a month. If you want to lease a slightly larger car – for example a Passat, then it costs around DKK 3,600 a month. Both of these two figures have been found to take the average from different sides, and this will be the price if you want to drive 15,000 kilometers a year. On the other hand, if you want to drive 20,000 kilometers a year in a small Peugeot, then the price is about 2,000 DKK each month.

However, there is also a first-time benefit when you have to lease, and this and much more, you can read about below.

 

Good leasing advice

home loan

Here we give you a few good tips for leasing, so if you are considering whether this is a solution for you, then you can be inspired and find help.

 

First Time Performance

The first-time lease payment can be an excellent alternative if you do not have 20% to pay off a new car. However, there is one big difference – you do not get this benefit back.

For the most part, you can find small cars that you can lease by paying between $ 3,000 and $ 5,000 in first-time payments. However, there are also larger models where it costs much more the first time.
Our advice is that you should be aware that this is not money that you will get back, and this you must remember when choosing a car.

 

Car model

Car model

When you buy a car, you can often negotiate for extras so you feel that you are getting a good deal. In addition, this can bring extra value to the car, once you have to resell it. However, this is not the case when it comes to leasing cars. If you want extra equipment in your leasing car, then this can cause the total cost of the lease period to increase.
You should therefore be aware of how the optional accessories affect the price.

 

Number of miles

Number of miles

When you talk about leasing and mileage, you talk about under and over kilometers. When you make a lease, you will agree on a number of kilometers – usually 15,000 kilometers.

However, it doesn’t pay you to drive much or much less than the agreed mileage. Here’s the reason.

 

If you drive too many miles

If you drive too many miles

If you drive more kilometers than the agreement allows, you will find that you have to pay an extra price per day. miles that you drive too much. This mileage will often be relatively high and therefore it can cost you dearly.

Also read when makes the most sense of lease

 

If you do not drive far enough

drive car

If you have a lease that says you can drive 15,000 miles, then you may not be able to save money simply by driving 10,000 miles. Not all agreements allow you to get money back.
All in all, our advice about miles is that you should try to hit that mileage as accurately as possible.

 

Return

car

When the lease period is over, which is often after 36 months, you will have to return the car again. Unfortunately, there is no car dealer ready with a bag of money for you when you arrive. On the other hand, you may often have to pay for any damage (for example scratches in the paintwork). FDM has done a study that shows that it often costs between DKK 3,000 and 5,000 to return a leased car to the dealer.

04 Aug

Does an installment loan from a non-bank company have to be expensive?

 

Due to the fact that the non-banking company pays PLN 15,000 or PLN 20,000 to the customer, the loan repayment is spread over several or even several months. The rules are therefore similar to the rules in force in banks. However, the non-bank institution reviews the application within a few minutes. Installment loans are long-term loans. They are an alternative to loans granted by banks. Who uses them most often?

The first group is people who did not receive a loan from the bank. The second belongs to customers who want a short payout period.

Who has the chance of an installment loan?

Who has the chance of an <a href=installment loan?” />

Persons with even low incomes can count on payday loans. For installment loans that are granted for higher amounts, the situation is different. The financial institution carefully verifies that the applicant will be able to pay the commitment.

Generally, the installment loan is most likely to have people who:

  1. They earn a steady income
    The loan company may request a salary certificate or statement, which it will then verify.
  2. They have a good credit history
    Non-bank entities, similarly to banks, estimate the risk of providing financial support to a given client. At the same time, they use various databases and registers gathering information on how clients regulate their obligations.
  3. They do not have too many other liabilities in banks and loan companies – an excess of loans and credits may cause the lender to cope with the servicing of another debt.

Some loan companies give preference to people who appear on their database as regular customers.

How much does the installment loan cost?

How much does the <a href=installment loan cost?” />

There is no 0% promotion in the installment loans segment which you can meet with popular payday loans. This means that even the first commitment will be charged with interest and additional costs calculated in accordance with the policy of the loan company.

Installment loan costs should be compared based on specific examples. Let’s assume that we want to borrow PLN 10,000 for 24 months. How much will we have to give back?

Lender Amount to give away [PLN] APRC [percent]
Extramoney 19583.02 107.09%
Headled 19574.80 107.1%
Providencia 19445.28 105.82%
Ralka 17906.51 85.6%
Kinoi 19546.54 106.41%

As you can see, the differences in the total cost of loans are significant. Therefore, it is worth carefully comparing the products offered.

To do this, you do not need to search and collate information on the pages of individual bidders. Just take advantage of a good ranking of non-bank products.

Warning! Most loan companies stipulate that after a detailed analysis of the customer’s creditworthiness, they can offer a loan with a higher interest rate or with additional fees.

How to choose a loan company?

How to choose a loan company?

Costs are an important point to look out for when choosing a liability to be paid in installments. But not the only one.

It is worth ensuring that the loan company operates legally. How? Checking the list of loan companies on the website of the Polish Financial Supervision Authority.

Entities applying the highest business and ethical standards belong to the Polish Association of Loan Institutions. This organization also publishes a list of its members on its website.

 

30 Jul

The social loan explained.

People have various reasons for borrowing cheaply. Are you looking for tax optimization or is it purely a major purchase? If you do not have sufficient resources, for example, to finance the purchase of your house or apartment, you can apply for a social loan from the government. You must then meet a number of conditions.

The Flemish Housing Loan from the VMSW is an affordable home loan for those who have a modest income and still want to buy their own home in the Flemish Region. You can get the Flemish housing loan for:

  • the purchase of a home or social property
  • the maintenance of a home (eg after a divorce)
  • the renovation, improvement or adaptation of a home
  • the purchase and renovation of a home.

Requirements

Requirements

To receive a Flemish Housing Loan, the home or building land must be located in the Flemish Region. You must also meet a number of conditions on the day on which you pay the administration costs of 100 euros:

  • age: you must be 18 years or older and the loan must be fully repaid in the year in which the oldest borrower turns 70
  • ownership: you and the persons with whom you apply for the loan may only have the property for which you apply for the loan in full ownership or usufruct. You may also not have any other building land or plot fully owned or fully usufruct
  • stay in Belgium: you must be able to prove that you can stay in Belgium for a long time
  • income and financial capacity: you can find all the conditions for the Flemish Housing Loan on the website of the VMSW.

The interest rate of the loan is also determined on that date (the reference date).

The estimated sales value of the home or building land may not be higher than predetermined maximum amounts. An estimator of the VMSW will make that assessment. For a number of key cities and municipalities in the Vlaamse Rand, the maximum amounts are higher than elsewhere in Flanders.

How to apply?

How to apply?

To register for the Flemish housing loan, make an appointment with a social housing company (SHM) that provides the Flemish housing loan.

If you visit an SHM, you must bring the following documents:

  • your identity card
  • your last available assessment notice
  • all supporting documents relating to your current income and that of the persons who take out the credit (at least three last income tokens).
  • a certificate of your family composition.

Cost price

Cost price

The amount that you can borrow differs depending on the activity for which you borrow. No more than 100% of the sales value of the property estimated by the VMSW is ever borrowed. Nor is more borrowed than the price of the transaction (eg the purchase price of the home, the cost of the works, etc.).

The interest rate is calculated based on:

  • the net taxable income
  • the number of dependents
  • the location of the home, the apartment or the building land.

The standard duration of the loan is 20 years.

Alternatives

Alternatives

Also view the full range of affordable loans that you can get from traditional lenders! Also and especially if your income is just too high for a Flemish housing loan.

Start your loan application here!

30 Jul

What is Credit Pre-Approval?

We can apply to consumer loans , vehicle loans and housing loans through many different channels. We make these applications via SMS, internet banking and directly to the branch. When such applications are entered, a message will be sent to our phone. “Your loan application amounting to XX.XXX TL has been pre-approved. “What does this message mean?

The preliminary approval of the loan to which we apply does not mean that the loan has been fully approved. Your bank may ask you for additional information and documents to continue credit entry.

 

What is Credit Pre-Approval?

What is Credit Pre-Approval?

Before you go to the branch , your bank makes a preliminary assessment. For example , immediately after your application on the internet, you may receive a message stating that the loan has been pre-approved and you can be called to the branch. However, this SMS does not mean that the loan is approved . This preliminary assessment is based on your credit rating, credits, monthly payments and monthly income and is subject to evaluation.

If your loans are not paid on a regular basis, if you have problems paying on credit cards or different products of the bank, your bank will refuse this application directly during the preliminary assessment if you have not worked with the bank for a long time and do not have a regular monthly income. Another situation is that your monthly payments are high. If you already have monthly payments and a high risk, the bank may refuse this application.

 

What is Credit Approval Determined?

Credit Approval

As we said, there are many reasons why the loan was rejected . Irregular payments, low credit ratings , and a high monthly risk may result in this credit being refused. Just because you’ve gotten pre-approval doesn’t mean it’s yours. In order to use a loan, you must provide the bank with the documents and all the information the bank requires. However, the approval you will receive after this stage is a definite approval. It is obvious that all credits that have been rejected in the pre-assessment section will continue to be rejected.

 

I got the pre-approval, but the credit does not come out

I got the pre-approval, but the credit does not come out

After obtaining prior approval , the reason for not being able to use the credit may be that the information on the bank channels is out of date. Therefore, your information needs to be up to date . If your income is lower than it appears in the bank and if such documents are requested after prior approval, the loan may be rejected as your new income will not cover the loan . Sometimes these situations can occur in mortgage loans.

27 Jul

Auto credit: vehicle sales are flying again

 

 

After a drag in April, the European car market accelerated last month. Naulters sales stood out from those of PSA.

Levels close to those before 2008

Levels close to those before 2008

Last May, 1.39 million units sold on the Old Continent, according to the latest figures from the Association of European Automobile Manufacturers (ACEA). This represents a nice increase of 7.6% over one year, a variation that follows a bad month of April (-6.6%). According to ACEA, this poor result was due to late Easter holidays.

In comparison, the year 2016 saw the auto market in Europe grow 6.8% to 14.64 million new registrations. Which brought him closer to pre-crisis levels. At the height of the market in 2013, the market weighed 11.8 million units.

Over the first 5 months of the year, the movement is also bullish with + 5.3% compared to last year in the corresponding period. In terms of volume, 6.71 million passenger cars were registered.

The major countries of the Union have been the driving force of the market, first of all Germany (+ 12.9%). Just one exception: the UK, which in a trading environment saw the number of cars put in circulation tumble 8.5%.

Naulters pulls out of the game

Renault pulls out of the game

In the car industry, expensive car continues to dominate the European automotive sector (24.2% market share). Its registrations grew by 8.2% compared to May 2016. But the trend for the whole year is slower (+ 3.2%).

On the side of French manufacturers, Since January, Naulters sees its vehicle sales climb 8.1%, a rate well above that of PSA (+ 1.9%). But their market shares remain the same, reaching 10.1% of the European sector.

Note that the brands in the 2 automobile groups evolve differently. At Naulters, the namesake brand sees its registrations climb by 7%, below its low cost brand.

At car industries, the brand of the same name recorded a rise of 3.2%, a little lower than that of Citroën (+ 4.6%). But the catastrophic results of DS lead the results of the group (-35.6%). The lack of novelties explains the tumble of this brand.

 

21 Jul

Olsa – reviews and reviews of installment loans.

 

 OLSA provides the highest quality services based on the security and protection of personal data of its clients. He reviews clients’ applications in a dozen or so minutes. We can see a free loan in the company’s offer, which is granted after meeting the basic conditions.

“30 days free” in OLSA

"30 days free" in OLSA

The lender meets the expectations of its customers and offers a unique promotion. “30 days without a fee” is a free loan that is taken for 30 days and paid back over the same period is actually free. Ie, the customer gives back to the lender exactly the amount he borrowed.

Even if we do not qualify for the promotion due to the longer term of the loan, which we have chosen, we should remember about an attractive APRC loan. It starts from 19 percent. However, it ultimately depends on the assessment of the applicant’s creditworthiness.

Take a free loan

Who can get a OLSA installment loan?

Who can get a <a href=OLSA installment loan?” width=”640″ height=”427″ />

Remember that each lender indicates the conditions that must be met in order to receive a loan. At OLSA they also apply. Belong to them:

  • Polish nationality;
  • age from 22 to 70 years;
  • full legal capacity;
  • positive creditworthiness;
  • no arrears against OLSA;
  • no entry in BIG or BIK.

In addition, the person applying for a OLSA installment loan should have an active mobile number, bank account and ID card. It is from him that he will have to provide data when completing the application for additional money.

Complete the application

OLSA card – cash in your pocket faster than you think

OLSA card - cash in your pocket faster than you think

Applying for a loan at OLSA is very simple. All you have to do is enter the company’s website and complete the application there. It is worth checking the correctness of the data provided in it to streamline the document review process. Then you need to get quick verification. If our application is accepted, the lender will send a courier to the address indicated by us. He will provide us with a special OLSA card, which is a form of payment of the loan.

Activate the OLSA card according to the instructions on the card. Activating the card will allow us to use it as a form of payment in stores, at an ATM or online. It’s the fastest way to get cash from a loan.

Important: withdrawing cash from an ATM will result in a commission of PLN 5 regardless of the amount selected. Checking the account balance at an ATM costs PLN 1.50.

Free early loan repayment at OLSA

Free early loan repayment at OLSA

The lender offers the opportunity to repay the loan by making a transfer to the company’s special bank account. Additionally, each month, it reminds its customers of the installment amount and the account number to which it should be paid. Thanks to SMS messages and reminder emails, there is a small chance that you will receive a payment request in the form of a reminder.

At OLSA, you can also pay back your loan early. This means that we can return the money borrowed during the loan period. However, we should inform the lender about our decision. Early repayment of the loan is free. What’s more, we can count on a refund for the unused period of the loan agreement.

OLSA services comply with the highest standards

OLSA services comply with the highest standards

OLSA provides its clients with the highest standard of services rendered. Customer data that is collected for verification purposes is securely stored.

The activities of OLSA SA are supervised and regulated by:

  • Polish Financial Supervision Authority;
  • GDPR rules;
  • Civil Code;
  • General Inspector for Personal Data Protection;
  • President of the Office of Competition and Consumer Protection;
  • The Act of May 12, 2011 on consumer credit;
  • The Act of 18 July 2002 on the provision of electronic services.

OLSA customers have the option of updating their data provided when setting up a profile on the company’s website. To do this, simply contact OLSA employees or enter your OLSA account and edit the data in the Customer Area.

 

 

18 Jul

How to find the best mortgage in Toulouse and its surroundings?

Capacity that has increased thanks to credit costs 

Capacity that has increased thanks to credit costs 

With historically low borrowing costs and more time-sensitive repayments, some middle-income and even modest-income households can now buy an apartment or house. A borrowing capacity that has increased thanks to credit costs divided by three and a half in ten years. This improvement undoubtedly offers new opportunities for people wishing to capitalize their monthly payments by buying their home.

Faced with all these variables, you wonder how to find the best mortgage in Toulouse and its surroundings, amidst the many existing proposals on the market…

Call on a broker to find the best mortgage 

Call on a broker to find the best mortgage 

Signatory to the credit intermediaries’ charter of good conduct, Crédit Count Almaviva is committed to helping you find financing solutions tailored to your situation and your project. Because it is clear that we are not all equal before the loan, the application being subject to the examination of different elements. Also, to put the odds on your side, our knowledge of the market is a real plus. An expertise that our customers benefit from the first interview.

To simplify your procedures and save you time, Credit Count Almaviva puts at your service more than 15 years of experience. Specializing in the pooling of credits, your broker based near Blagnac and Colomiers takes care of everything from the assembly of the file to the presentation of your request, and negotiations, with the banking institution offering you the best conditions.

Reasonable financial management and stable employment are undeniable assets for those who want to become owners. Add to that a contribution, and then you will represent the profile of the perfect borrower, one of the first concerns of the lender is to ensure that you have the ability to repay the loan. Does this mean that other profiles will not be able to borrow? Fortunately, mentalities have evolved with their time and today banks are more open in their approach. Thus new types of borrowers have been taken into account: self-entrepreneurs, fixed-term contracts subject to having a continuous activity, single-parent family if the income is sufficient, temporary…

 

So many situations that require a serious prior study, a file setup well done and well brought to convince. That is why, to facilitate your home ownership, Crédit Count Almaviva advises you and carries out the various steps necessary for the completion of your real estate project.

If the choice of the best mortgage is important, that of the insurance borrower is as much. This will indeed represent a significant part of your refund since it can constitute up to 40% of the total amount reimbursed! A figure that alone illustrates the importance of choosing the right insurance borrower.

 

 

 

17 Jul

Borrow small amounts without income

Do you not have a job, but do you want to have something extra to spend? Borrowing small amounts without income can be arranged easily via the internet! You have taken out such an online loan within a few minutes, and then you are out of money problems again. If you take out a loan now via the internet, you have more to spend today!

A dip in your balance: unfortunately that happens much more often than you think! But, fortunately, it is also becoming easier to solve nowadays! If you have no work or a blacklist, it is difficult to borrow from the bank. It is often a lengthy process, with piles of paperwork and very many complex questions. And if you have gone through that entire process, there is still a chance that you will not get that loan at all. But there are of course several roads that lead to Rome, so luckily you can get a loan in other ways now. Via the internet you can now easily borrow small amounts without income, so you don’t have to go to the bank at all! Easily borrow 200 euros, 450 euros or even 900 euros, and that little dip in your balance will be gone again!

You can borrow small amounts without income with a mini loan

You can borrow small amounts without <a href=income with a mini loan” />

If suddenly unexpected bills come in, or the washing machine breaks, it is nice if you can borrow some money easily and quickly. A mini-loan offers the solution at such a moment! With a mini loan you can easily borrow small amounts without much hassle. Everything is arranged online, so you do this when you have the time, and that is also possible in the middle of the night. And, you don’t have to leave the house! You can arrange a mini loan at your own desk. An application is made in a few minutes, and since no BKR check is performed and no payslips are requested, you don’t have to worry that you will not get the loan in the end. The great thing about an online loan is that everything is arranged super fast, so you have the money boxes in your account within a day. This way you can get a small amount of money very quickly without any hassle!

You too can borrow small amounts without income

You too can borrow small amounts without income

As mentioned, you do not have to worry that your loan application will ultimately be rejected. An online loan works very differently than a loan from the bank. The online lenders do not apply strict rules, which means that almost everyone is eligible for a loan. You must be 21 years of age or older to take out a loan, and you must have a fixed income, such as a salary, benefit or a student loan. No BKR review is done and you don’t have to tell anything about your financial background. So whether you are unemployed, have been blacklisted for a few years, or are earning very little, it doesn’t matter! Borrowing small amounts without income is always possible with a handy online loan!

06 Jul

Consumer Credit

Act No. 257/2016 Coll. on consumer credit directly defines the term consumer credit as a “deferred payment, a monetary loan, a loan or a similar financial service provided or mediated to a consumer.” The term consumer credit, therefore, means some form of a loan. And it does not matter whether it is for borrowed money or for the gradual repayment of purchased or leased items.

The Consumer Credit Act defines three basic types of these loans:

  • Consumer credit as a non-purpose loan of funds
  • Consumer credit for housing – mortgage or building savings loan
  • Tied consumer credit – loan linked to a specific purchase of goods or services (hire-purchase)

The Act also defines what is not a consumer credit falling within the scope of this Act:

  • Loans that are provided for investment purposes
  • Services or supplies of goods that are paid on a continuous basis (electricity, gas)
  • Credit agreed with pawnshop operator when the customer receives money in exchange for a movable item

What is consumer credit for?

What is consumer credit for?

The consumer takes out a loan or loan to raise money to acquire or pay for what he does not currently have enough money for. Alternatively, it will deal with the gradual repayment of the current purchase. So the consumer basically rents the money for some time. The rental price is partly determined as an interest rate calculated as a percentage of the amount due. However, the price may also include many other components, the so-called fees – for example, to settle a loan, to draw money, to keep a loan account, etc. All borrowing costs should then be added to the APR.

The APR and the total cost of the loan may vary

The APR and the total cost of the loan may vary

The total cost of the loan is then called the APR or the annual percentage rate of charge. But beware, the law allows not to mention everything in the APR. This is on condition that additional costs (for setting up or maintaining an account, costs associated with payment transactions) are separately disclosed in the consumer credit agreement.

Therefore, the client should prefer the final price paid by the consumer. Indeed, each consumer credit provider is obliged to communicate this amount to the applicant for the loan (consumer). As well as the repayment schedule, the consequences of default and other loan requirements.

Who can provide consumer credit

Who can provide consumer credit

The loan provider is a legal entity that provides its funds for consideration as if it leases them to the consumer. Its business is based on this because it collects interest and fees on the loan. The result is profit.

According to the law, only a legal entity listed in the Act may be a consumer credit provider. It is about:

  • Bank
  • Non-bank consumer credit provider
  • Savings and Credit Cooperative
  • Payment institutions
  • Small-scale payment service provider
  • Electronic money institutions
  • Small-scale electronic money publisher

At the same time, a non-bank consumer credit provider has legally clear conditions that it must meet to provide consumer credit.

What are the types of consumer credit?

What are the types of consumer credit?

The Act defines three main types, ie consumer credit, bound consumer credit and consumer credit for housing. But the world of loans is much more varied in practice.

We distinguish between types of loans according to many criteria, so as a result, we meet loans:

  • Bank or non-bank – according to their provider
  • Long-term, medium-term, short-term – by the duration
  • Purpose, purpose-free – depending on how the consumer can use the money
  • With or without collateral – depending on whether the loan is secured, most real estate
  • With or without liability – depending on which the guarantor is required
  • Microloans, or loans before payout, are typically loans of up to five thousand
  • Fast loans – loans with a maturity of up to one month
  • Mortgage – a loan for the acquisition or reconstruction of housing, which is secured by one or more properties
  • Building savings loan – loan for the acquisition or reconstruction of housing from the building society, while the client saved part of the loan in advance
  • Bridging loan – usually a loan for the acquisition or reconstruction of housing from a building society, to which the client did not save in advance
  • Installment Purchases – Progressive Repayment of Purchased and Used Items