Loan Institutions – what is that?

What is the Good Finance of Loan Institutions? What is the mission of the Good Finance of Loan Institutions?

Which loan companies can join GFIC? Membership in the Good Finance of Loan Institutions and obligations Why was GFIC founded? Which companies belong to GFIC?

Non-bank loans are very popular, but still a lot of people are cautious about them. All due to unreliable loan companies that use unethical and illegal practices, leading to quick enrichment at the expense of naive borrowers.

What is the Good Finance of Loan Institutions?

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Before you get a loan, it’s worth finding out what the Good Finance of Loan Institutions is. It is an organization that brings together the most recognized and trustworthy representatives of the non-banking market in Poland. In the past, GFIC was known as the Association of Loan Companies.

Members of the Good Finance of Financial Institutions are only companies that apply and promote the highest standards of services, as well as those who care about changing the image of non-bank loans.

The Good Finance of Loan Institutions conducts a selection in the field of who is included in its membership, hence its status can be granted only to the company that has managed to undergo a multi-stage and comprehensive assessment process.

What is the mission of the Good Finance of Loan Institutions?

The Good Finance of Loan Institutions was established to represent the loan industry with dignity , whether in public debate or in dealing with decision-makers.

The primary and still valid mission of GFIC is to change the image of the non-bank loans market and to strengthen customer confidence in this sector.

His main task is to develop wise and fair legislative regulations that will ensure the loan industry the highest standards of services offered.

Which loan companies can join GFIC?

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Both loan companies and other non-financial companies operating in the loan industry can become members of the Good Finance of Loan Institutions. However, this does not mean that every institution will be admitted to the members of GFIC – the candidate must meet the highest standards of consumer service.

When evaluating businesses requesting to join GFIC are taken into account its business practices used, standard contracts are offered, as well as GFIC yellow b consideration of consumer complaints.

Collected industry and consumer opinions about a given loan company as well as the history of non-bank institution’s activity in terms of possible unethical and illegal practices are also of considerable importance.

The most important criteria for admitting new members to the Good Finance of Loan Institutions include :

  • activity in the form of a commercial law company,
  • running a business with a dominant majority of sales via the online channel,
  • offering loans and possible collection methods with costs not exceeding market standards,
  • no entries on the GFI warning list,
  • no penalties imposed for significant or less significant but repeated violations of consumer rights,
  • absence of convicted persons on the management board, supervisory board or key management of the company,
  • successfully passing through a multi-step internal verification,
  • status acceptance
  • obtaining positive opinions from at least two current members,
  • impeccable opinion about the company in the mass media and in the entire industry environment.

Membership in the Good Finance of Loan Institutions and obligations

Each company with GFIC membership status should, among others:

  • operate in accordance with the law and status records,
  • grant loans only from own funds,
  • reliably examine the creditworthiness of your clients,
  • provide specimens of contracts and tables of fees on their website,
  • provide information on the cost of borrowing on its website.

It is forbidden for GFIC members to apply hidden fees, collect non-returnable fees for processing applications or use misleading advertisements of potential customers. It is also strictly forbidden to grant further loans before the repayment of an earlier commitment.

Why was GFIC founded?

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The main task of the Good Finance of Loan Institutions is to strive for self-regulation of the online non-bank loans market. Promoting and ensuring high-quality products and services is to help achieve this goal.

The assumption of GFIC was to respond to the needs and expectations of the market – to spread knowledge about non-bank financial products and to present clear and transparent offers of online lending companies.

So that consumers who reach for short-term loans do not have to be afraid of being cheated and the loan instead of helping them will get them in more trouble.

Credit repurchase is for all borrowers

We recently revealed the typical profile of the borrower buying back credits. The age range, which ranges from 25 to 77 years, highlights an openness to many profiles. Your request may be in the order of anticipation or consequence, following an unforeseen event for example.

A response to changes in financial situation

A response to changes in financial situation

Certain events can cause complications in the management and stability of your finances. Job loss, divorce and death are sometimes unpredictable while an accident is always. These situations are difficult both humanly and financially.

The drop in cash flow and / or the costs involved can have a big impact on your budget. If you find yourself in this type of situation, buying back credits can help you maintain or regain financial comfort. By grouping your debts to pay off only one, your monthly payments automatically drop. With the lengthening of the repayment period involved in the operation, you benefit in particular from better purchasing power.

Other needs are more predictable: work, a new vehicle, etc. The objective remains the same : reduce your debt ratio to make your daily life easier.

The repurchase of credits, a springboard for your new projects

The repurchase of credits, a springboard for your new projects

If you are interested in the advantages of buying back credits, be aware that the transaction is not conditioned by a change of situation. It also makes it possible to lighten the weight of the repayments of your current loans to better launch you into new projects.

In addition, you may be granted additional cash. This can allow you to carry out small projects such as a repair or a renovation in parallel with your financing. Its granting is determined by your profile.

Variable borrowing conditions, the same benefit

Variable borrowing conditions, the same benefit

Whatever your income, your socio-professional category and your age, you can potentially take advantage of a grouping of your credits. Whether you are accessing the property or a tenant, you can also benefit from the operation. The latter allows you to more easily settle your monthly mortgage payments or your rent.

If you are active and have a good salary, it is not excluded that you will have trouble managing your finances. In the same way, if you have late payments, buying back credits allows you to reset the counters to zero. This last point concerns in particular young borrowers who have multiplied their debts in order to build a situation. Too many loans generate the same consequences for all borrowers.

Loan promissory note – what is it? Is it worth taking loans for a promissory note?

Private loans are not very popular, but people who have been refused cooperation in banks or financial institutions are willing to use them.

Although loans under a promissory note carry some risk, sometimes they are the only solution in a difficult financial situation. What is this form of financing and is it worth using it?

Loan secured loan – what is it?

Loan secured loan - what is it?

It is a form of loan granted by private persons not conducting activities related to financial services. In this case, the security for payment is a promissory note, not a civil law contract.

A promissory note is a security that is the basis for debt enforcement to cover the creditor’s needs. A promissory note may be issued in the form of a completed document or in a blank form in which the creditor himself completes the missing information, such as the amount or repayment date.

Blank promissory note

Each promissory note must contain all completed items, including the signatures of both parties to the transaction. In the case of a blank document, fields such as a bill of exchange or payment location may be left blank. Only the date and place of issue, as well as the details of the addressee and exhibitor, are valid.

Where can I get a loan for a promissory note?

Where can I get a loan for a promissory note?

In the case of non-bank services, offers are easily available and can be requested based on clearly defined rules. The situation is different in the case of loans secured by a promissory note because you have to look for such bidders yourself. This is a certain risk because you can find a dishonest lender, so the search should be limited to proven places.

Private investors providing loans under a promissory note usually advertise on internet forums or websites. There are also special loan exchanges, which are the safest solution, as both the investors ‘and borrowers’ data are previously verified. Before establishing cooperation, always check the information about the lender and secure the promissory note with additional documents.

Loans for bills of exchange – is it worth using them?

The most important advantage of loans secured by promissory notes is that the borrower’s data are not verified in any debtors’ databases. Simple formal rules and the opportunity to negotiate terms of cooperation with the investor are also encouraging.

However, such loans may carry a risk in the case of a blank promissory note where all fields are not completed. The transaction should be secured with a promissory note declaration specifying the conditions for completing the blank document.

Concluding loans for a promissory note carries considerable risk, so you should consider other forms of financing. On equally favorable terms, non-bank loans are granted, in which you can submit an application online and adjust the repayment terms to your options.

What to learn on cash loan interest rate?

What is the interest rate on cash loans? How much can the interest rate on a cash loan be? Loan interest rate and APRC Interest rate on cash and housing loans

What is the interest rate on cash loans?

What is the interest rate on cash loans?

The bank grants loans to its clients to earn on the loan services offered. Therefore, every loan costs and the basic component of such cost is interest. It can also be said that the interest rate on a cash loan is its price. This is the basic cost of repaying the liability to the bank.

At the same time, the interest rate on the loan determines the amount of interest the customer will have to pay when paying back the loan’s principal and interest installments, or how much the entire sum will be in the event of a one-off repayment.

How much can the interest rate on a cash loan be?

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It is not possible for the bank to determine the interest rate on cash loans in any manner. The interest rate on cash loans is regulated by law. Please refer to the provisions of the Act of 12 May 2011 on consumer credit and the Civil Code. Pursuant to statutory provisions, the maximum interest rate on a cash loan, including a cash loan, may not exceed twice the statutory interest rate.

These, in turn, are equal to the sum of the reference rate of the Good Finance and the rate of 3.5 percentage points. Currently, when the GFI reference rate is 1.5 percent, banks can grant cash loans with an interest rate of no more than 10 percent. per year. Similar rules apply to loan companies that provide non-bank loans online to their clients.

Do you know that…?

The nominal interest rate of a cash loan is not the only cost borne by the borrower. You should be aware that banks may also charge non-interest costs, including commission, preparation fee, insurance premiums required as collateral, etc. The Consumer Credit Act, which includes a cash loan definition, assumes that the maximum amount of non-interest loan costs may not exceed:
– 25% total loan amount,
– 30% total loan amount in each repayment year (the part depends on the length of the loan period).

Loan interest rate and APRC

Loan interest rate and APRC

Very often, when comparing cash loan offers with various banks, customers only pay attention to the interest rate. In promotional offers, it may be lower than 10 percent. per year – even significantly, which does not mean that it is the cheapest loan that the customer can use on the financial market in Poland.

The full loan cost is not indicated by the parameter, which is the interest rate on cash loans, but the APRC – the actual annual interest rate. The APRC shows the real cost of the loan after taking into account the nominal interest rate and any non-interest costs, including the change in the time value of money.

Therefore, when comparing loan offers, you need to pay attention to the APRC of the loan, because the low-interest rate does not mean the cheapest offer.

The interest rate on cash and housing loans

The interest rate on cash and housing loans

Cash and mortgage rates have slightly different characters. The interest rate on cash loans is much higher, but the loan is also taken for a shorter time, which means that the bank is able to earn less on it than on long-term repayment of a lower-interest mortgage.

The lower mortgage interest rate is also due to the fact that it is a liability better secured by a mortgage established on a residential property and additional security, such as real estate and life insurance.

The method of calculating the interest rate on cash and mortgage loans is also different. In the case of a cash loan, it depends on the reference rate of Good Finance and is permanent during the loan period.

Mortgage, the interest rate is usually variable and is based on two components: the GFIC base rate, e.g. 3M, and the bank’s margin, which is negotiable with the lender.

The interest rate on a cash loan is the cost incurred by the customer incurring such liability as part of the monthly principal and interest installments.

Bundle your credits before it’s too late

 

Usually, many credit consolidation structures are sold out in September. And for good reason, the start of the school year is the period of the year when the cartoons of individuals accumulate, creating an immediate need to restructure the monthly payments linked to different loans (revolving credit, work credit, bank overdraft, consumer credit, car credit, mortgage, personal loan, etc.).

For some households, the cumulative amount of these monthly payments is so high that they come close to over- indebtedness at any time. The repurchase of credits allows you to reduce the burden of the amounts disbursed monthly to repay your loans. The operation groups them into a single loan, the total duration of which replaces those of current loans, allowing you to quickly regain your purchasing power.

The consolidation of credits has many advantages.

The consolidation of credits has many advantages.

It allows budget control and reveals a relative fluidity in terms of the rate and time of repayment of the new loan. The latter is estimated according to the scope of your debts and especially your ability to discharge them. It takes into account your standard of living, your immediate projects and imperatives, and the residual sums at your disposal. If necessary, the extension of the repayment period for the new credit will thus make it possible to reduce the borrower’s level of debt according to his earnings, up to 40%, the tolerance threshold in force in the banking sector.

For the start of the new school year?

For the start of the new school year?

All the indicators support the interest rate thesis on the repurchase of attractive loans. The latter now reaches a historic level of 0.05%. A resolution that will be sure to applaud the banks and pretenders to the loan. This jubilation is explained in a very simple way. Each time a bank structure agrees to legend to an individual, it must refinance with the central bank at an amount regulated by the key rate of the. An almost zero rate thus allows banks to refinance for twice nothing, with obvious repercussions for the borrower. The race to consolidate credits therefore seems to have started.

So go ahead, visit our site for a free simulation without obligation.

Does residual debt insurance make sense for the loan?

Taking out a bank loan – depending on the amount of the loan and the term – can be associated with a certain risk for the debtor: When taking out the loan, you usually make a multi-year payment obligation to the bank – but who can guarantee today that there will still be a lot of work at home Years is safe?

In the unfortunate case that the borrower is no longer able to pay the loan installments due due to inability to work, unemployment or death during the repayment phase, the entire open debt is transferred to his closest relatives – a financial burden for many relatives, that cannot be worn.

Remaining debt insurance takes over loan repayment in case of fatal strokes

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In order to counteract possible indebtedness of their own families right from the start, many banks offer their customers so-called residual credit insurance (RKV) or residual debt insurance (RSV). Depending on the scope agreed upon, when the above-mentioned cases occur, this insurance covers the payment of the due loan installments for a certain period of time. This means that the credit insurance is fundamentally very similar to a life insurance policy, with the crucial difference that the insurance sum for RSV and RKV always corresponds to the remaining balance of the loan.

Another difference to risk life insurance is the cost of credit insurance: When the RSV is concluded, all premiums that are due by the end of the loan term are added up, added to the actual net loan amount and bear interest. As a result, the loan amount and thus the total loan costs due to the residual credit insurance increase significantly.

The sensibility of the RSV must be decided individually

The sensibility of the RSV must be decided individually

Each and every borrower has to decide for himself whether and to what extent residual credit insurance is really necessary when taking out a loan. As a basic guideline, however, it can basically be stated that residual debt insurance is only really worthwhile with relatively large amounts of credit: The damage caused by a possible default on smaller amounts of credit is not related to the additional costs incurred by the insurance.

Credit and loan – what is the difference between them?

The financial services market is characterized by great diversity, thanks to which it flexibly fits into the clients’ needs. Access to many forms of financial support is a great help, which is eagerly used by people in financial difficulties. At present, customers have at their disposal loans granted by banks and non-bank loans. What is the difference between these two products?

Credit – what is it?

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Banks are institutions that enjoy considerable trust among customers. They grant loans for a specific purpose and also provide a wide range of financial services. A loan is nothing other than a transfer of funds by the bank to another entity on specific repayment terms. The loan agreement must be in writing and meet formal requirements such as:

  • data on both sides of the loan,
  • loan amount,
  • repayment date,
  • interest,
  • additional fees,
  • repayment terms,
  • signatures.

To obtain a loan, banks verify the customer’s creditworthiness, which depends on the decision to grant or refuse a loan. In addition, it must be remembered that the funds received must be intended for a specific purpose.

Loan – definition

A slightly more flexible product is a loan. It can be provided by loan companies as well as between natural persons. In addition, it does not have to be in monetary form, as tangible assets may also be the subject of the loan.

The loan agreement is constructed in almost the same way as for a loan. However, a loan is a slightly more loose product than a loan, which is why the funds obtained from it can be used in any way.

What is the difference between a loan and a loan?

What is the difference between a loan and a loan?

The most important difference is that, unlike a loan, credit is always given by banks. Although there are some similarities between them, there are definitely more differences. The table below summarizes the features of both financial products:

What is more profitable?

The choice of funding depends primarily on individual needs. To obtain a loan, strict conditions must be met, while a loan is a more flexible product. It can be used by people whose creditworthiness is not sufficient to receive a loan, and due to the variety of offers, you can find a loan on attractive repayment terms.

Looking for the best form of financing for yourself, it is worth analyzing the list of current offers. Based on the ranking you will be able to compare interest costs, repayment conditions and the granting of individual loans. This way you will choose the offer that best suits your needs.

Start paying off my debts: discover the best strategy

There are many Mexicans who are currently in a somewhat complex economic situation, mainly caused by debts. If this is your case, and your concern is summed up with just one question, how can I start paying my debts? Pay attention to the financial information we bring today for you, where we will give you the best recommendations, such as asking for a home equity loan.

 

How to start paying my debts

How to start paying my debts

People often panic when they face a large amount of debt. There are so many people who live this situation in Mexico, that they mistakenly think of devising a plan only when they are already over-indebted.

The main advice that we are going to give you, is that you do not allow much time to find a solution. And that within that strategy consider the following:

 

Become aware of your debts

Become aware of your debts

The first and not least, is to accept that you have debts and that you must get out of these at any rate. Remember that if you are not punctual with the payments, you could appear in the Credit Bureau, and if you wanted to ask for a mortgage loan, it would be rejected.

 

Calculate your debt

Not only do you have to know that you are in debt, but also have the knowledge of how much you owe. In this sense it will be very helpful to detail the amount of money you owe, so you can answer your question more easily, where to start paying my debts?

 

Determine your fixed expenses

Determine your fixed expenses

This step will help you a lot to start paying off the debt. By having your expenses clear, you can place those that are a priority, and those that are not so important, allocate them to the payment of your debt.

 

Apply for a home equity loan to start paying my debts

An excellent option, which is being used a lot in recent times, is to pay off debts thanks to obtaining a home equity loan. In which you can receive a percentage of money for the value of your home. In addition, this credit has a lower rate than most credits.

This modality is usually used to pay off all debts, finally remaining with only one of lower cost.

As you can see, the most important thing is that you be orderly and determined, the specialists also recommend making a refinance.

5 reasons why you should use a credit comparison service

On the Internet you can find many types of comparison websites – prices, home appliances, telephones, computers, as well as financial comparison websites. Among the latter are also applications and tools that allow you to compare loan offers with each other. Is it worth reaching for such credit comparison websites? We present 5 arguments in favor of such a solution.

 

Thanks to the credit comparison, you can choose the best loan in a given time, with the lowest total costs, educate yourself in the credit sphere and save time that you would have to spend on self-gathering loan offers. 

 

What is a credit comparison?

What is a credit comparison?

 

Before we move on to specifying the reasons why the use of a credit comparison tool is completely justified and useful for potential borrowers, it is worth considering what this comparison service is.

 

This is a special service – a tool that allows you to compare in one place credit offers from various lending institutions – banks and cooperative savings and credit unions. You can compare different loans, including:

  • cash loans
  • consolidation loans
  • car loans
  • mortgages
  • company loans 

The customer only needs to specify in the comparison engine their future loan requirements, including its amount and loan period, so that the comparison algorithm can present the desired list of current bank offers.

 

Why is it worth reaching for a loan comparison engine?

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Saving time

 

It  takes a lot of time to collect several loan offers from different banks and then combine their parameters with one another. The client has to trace the bank offers on the internet, send inquiries about the desired loan or visit banks in person and have conversations with specific advisers on specific offers.

 

Wider selection of offers

Wider selection of offers

 

Bankers agree that the selection of the optimal loan should not be limited to comparing 2-3 offers with each other. In this way, we may miss an offer that will definitely be the most advantageous for us in financial terms. That is why a credit comparison tool, which can compare 8-10 proposals in one place and more, is a very useful tool for the borrower.

 

Extending knowledge

 

Credit comparison usually not only presents dry data on loan offers, but also explains the complexities of the offer and terminology used in banks. Thanks to this, the client can expand his financial knowledge.

 

Checking various loan parameters

Checking various loan parameters

 

The bank’s interest rates are usually strongly marked. This is a nominal interest rate which deviates from the Annual Real Interest Rate (APRC). It is worth considering a number of parameters when considering loan offers, and these can be seen and compared with each other in the credit comparator.

 

Saving money

 

The customer can see at a glance which loan and in which bank is the most advantageous for him. He can check his interest rate, APRC level, the amount of potential installment to pay and the overall cost of financing. Then you only have to choose the best loan.