Many non-bank entities advertise their offers under the banner of a 100% grant. Of course, this does not mean that absolutely everyone will receive it. However, these offers are very likely to be awarded, even if the borrower’s credit and financial standing is not the best.
A certain instant payday – basic requirements
The granting of funds to the borrower depends on several factors. First of all, the ram takes into account the amount of funds we apply for, the manner of their repayment (number of installments, one-off repayment) and the form of its security. The latter is very important because not every non-bank entity is ready to assume the high risk of loan default. And this risk is particularly borne by the borrower’s debt and the lack of documented source of income.
However, in such cases, the borrower has a good chance of receiving funds as long as he meets several basic requirements. And these are:
- Polish nationality,
- reaching the minimum age of majority,
- possession of an identity document,
- having a bank account, active phone number.
If you are applying for a small loan amount that will be repaid in a short time – e.g. USD 1000 for 30 days, it is usually enough to meet these requirements. However, in the case of higher amounts, additional collateral may be necessary – e.g. car pledge or possession of a guarantor.
Loan 100% granting
The loan can be granted with 100% certainty if you are not indebted and can document your income – the higher it is, the higher the loan amount you can apply for. The chances of many people have increased due to this year’s increase in the minimum wage. In the case of people working in budgets, an additional advantage will be the internship allowance, which, also from this year, has ceased to be a component of the minimum wage and is billed separately.
Certain loans – will they disappear from the market?
In individual years preceding 2019, the non-bank services market recorded further increases. At present, as statistics show, sales of loans are falling. According to the data provided by BIK, the value of loans granted (September 2019 vs September 2018) decreased by 4.7%, although their number increased by 5.9%.
In addition, the provisions of the new anti-usury law, which was developed in 2019 but has not yet entered into force, are alarming. According to it, it is to drastically decrease
maximum amount of non-interest costs – up to 20% of the loan value. This will cause that the activities of many non-banking companies will become less profitable, and therefore they may decide to withdraw from the market. This will of course limit access to non-credit resources for many customers. Experts also point out that this could lead to the development of a gray area of illegal money lending.
How does this regulation compare with Europe? Which countries have equally restrictive laws? This is the case with our western and southern neighbors, i.e. in Germany and Slovakia. There are only a dozen or so non-bank entities operating there, so this type of financing has a slight market share.