The loan collateral costs

Banks charge these fees in three ways. The first and most widely used is to increase the loan interest rate by 0.5-2 points. percent.

This results in an increase in the monthly loan installment and does not constitute a separate payment, which if a valid entry is obtained earlier, will be refunded to customers in the portion related to the unused insurance period.

The higher interest rate or premium

Higher interest rate or premium

This means that for an average loan of 250,000. USD, granted for a period of 30 years with an interest rate of 6 percent (according to Good Finance data, these are average values ​​that characterize currently granted loans), the monthly cost of bridging insurance may range from about USD 80 to over USD 330 (depending on the bank).

The total cost of transitional security also depends on the pace of work of the district courts, which are responsible for making entries in the land and mortgage register.

Entry in the land and mortgage register in an average of 27 days

Entry in the land and mortgage register in an average of 27 days

According to the research of the statistics department of the Ministry of Justice, in the first half of 2011, more than 1.64 million cases related to land and mortgage registers were considered in district courts. According to the authors of the study, this area of ​​litigation was among the most efficiently managed.

The proof is the surplus of pending cases (over 1.64 million) over the number of submitted applications (1.58 million), and thus a decrease in the number of cases left for consideration in the second half of the year (228 thousand in 2011 compared to 256 thousand in H1 2010).

This is good news for borrowers. Data for the first half of 2011 indicate that the courts are now working more than twice as fast as three years ago. The statistical case in the land and mortgage register court in 2008 was settled in about 55 days and from that moment the examination time gradually decreased, in 2009 to about 48 days, 2010 up to 35 days, to reach a record 27 days in the first half of 2011. However, it should be remembered that these are only average measures.

In different regions of the country, waiting for changes in the land and mortgage register may take much longer, but shorter waiting periods are not isolated. Undoubtedly, however, shortening the processing time for applications is good news for borrowers, because it means savings for them. Fees only until the entry becomes final.

The speed of making an entry in the land and mortgage register is key to determining the actual costs of bridging insurance for customers.

The judgment of the Court of Competition and Consumer Protection of 9 August 2009 prohibits the collection of any additional fees from customers after all collateral required by the loan agreement has been established. This means that the bank has the right to charge additional fees only until the entry becomes valid and not until the customer brings to the bank a copy of the land and mortgage register, in which the mortgage of the bank will be in the first place. All fees collected after this time must be refunded to the customer.

In practice, the cost of bridging insurance incurred by the client in the first half of 2011 was on average around USD 180 (an example loan of USD 250,000 for 30 years, with an interest rate of 6 percent, a margin increase of 1.2 percent). Three years ago, more than twice the waiting time for consideration of a case in the land and mortgage department of the district court meant that these costs were around USD 370.

What does the mortgage establishment process look like?

What does the mortgage establishment process look like?

The collateral for each mortgage is the entry of a mortgage in the land and mortgage register. Banks usually also require that their mortgage is in the first place, before any other entries. How to efficiently carry out such a process? In a situation when we buy an apartment on the secondary market, previously charged with credit, at the stage of completing the credit documentation, information on the amount necessary to pay the previous liability should be provided to the bank granting the loan for the purchase.

An additional condition for disbursement of the loan will also be the submission of an application for entry into the land and mortgage register of the buyer’s bank.

If the entry were made immediately, it would be in second place on the list of mortgages, which could not constitute full collateral for the loan. It is worth remembering that the application for entering a mortgage is submitted to the district court appropriate for the location of the property, which can also be done by a notary public.

When the bank receives confirmation of submitting the application for registration of the mortgage, it first pays funds to the repayment account of the previous mortgage. Only after the full repayment of the “old” loan will the seller be able to obtain the documentation necessary for the buyer to remove the mortgage entry for the previous loan.

It is worth remembering that the buyer, not the seller, will have to go to court to file an application to delete the previous mortgage from the land and mortgage register. Deleting this entry will cause the buyer’s bank to move to first place on the mortgage list.

What are social loans?

On the Polish market, interest in social loans is low, but in other European countries they are quite a competition for banks, non-bank institutions and investment products.

Social loans – how do they work?

Social loans - how do they work?

What is a social loan? A social loan is a civil law agreement concluded between two private persons, without the intermediation of banks or loan companies. The subject of a social loan agreement is a specific amount of funds that one party provides to the other under certain conditions.

The role of lending institutions in this case is played by social loan platforms connecting people who need extra money with those who want to lend them. They provide tools to complete transactions and help you recover funds in the event of default.

Unlike products offered by banks and loan companies, social loans are not subject to any supervision. In practice, this means that all the terms of the loan depend on the arrangements between the parties, with the person giving such an obligation may request a commission of any amount.

Providing social loans can be profitable and can become a way of earning a salary, provided that we do not run into a dishonest borrower. Admittedly, borrowers are usually verified and checked in BIK and other debtors’ databases, but this is not always reliable and does not guarantee repayment of the loan

Social loans ranking – where to look for offers?

Social loans ranking - where to look for offers?

There are many websites offering social loans. One of the most popular is the kokos.pl website, where the regulations have recently changed. Until now anyone could be an investor, currently only a company entered in the Register of Loan Institutions (kept by the PFSA) can play its role. Blue Media SA is now the main investor of kokos.pl

There are also portals where social loans are only offered to companies. One of them is Good Finance – an institution supporting entrepreneurial people that approaches running a business in a modern and flexible way. At Good Finance, entrepreneurs can apply for a loan of up to USD 3 million. Business owners can also apply for a loan at Capital Club or Mintos.

Social loans for those in debt – is it possible?

Social loans for those in debt - is it possible?

The great advantage of social loans is that they can benefit those in debt. Banks usually do not grant loans to customers with low creditworthiness and a negative credit history. It happens that loan persons go hand in hand with such people, and although they verify their creditworthiness, it does not affect the decision to grant a loan.

The same applies to social loans. Financial arrears do not have to cross the loan chance. There are websites where you can get additional funds regardless of your credit history. Each application is examined by them individually, so you can get loans for those in debt.

How do you get a community loan?

How do you get a community loan?

To receive a social loan, you must first register on the selected portal, which usually takes no more than a few minutes. When creating an account, you will need information such as:

  • and my name and surname,
  • Social Security,
  • ID number,
  • Bank account number,
  • Telephone,
  • e-mail adress.

The next step is verification, which takes place usually in bed d ch stages. The first is mandatory and the second is voluntary, but it increases the borrower’s credibility and places him at a higher level (“rating”) after successful verification.

After registering and verifying your account, you must submit a loan application. At this point, you must specify the terms of the loan. After specifying them, one should wait for investors’ suggestions. When the offers come in, one should choose the most profitable ones.

Can I get a social loan online?

Can I get a social loan online?

There are smaller and larger websites offering social loans over the internet that can be divided into those that offer loans to individuals and those intended for entrepreneurs. The portals act as intermediaries between social investors (lenders) and borrowers.

They play a similar role as, for example, a real estate agency when buying an apartment. Online social loan services charge a small percentage of the borrowed amount for the service.

How much does a social loan cost?

How much does a social loan cost?

The total cost of the loan is the most important thing for each borrower. There are no free commitments in the social loan offer, but there is still a chance to negotiate favorable borrowing terms.

In any case, the cost of the social loan depends on the individual arrangements between the investor and the borrower. It is worth being aware, however, that the interest rate on the loan is as per the so-called Anti-usury law can not exceed two times the sum of the reference rate and 3.5 percentage point in the bed. Currently it is 10 percent per year.

The cost of the social loan includes:

  • interest rate
  • fee for granting the loan,
  • commission for the intermediary platform,
  • additional verification fee,
  • a fee for extending the loan period in case of problems with paying the loan installments.

When you take a social loan, you have to take into account the tax on a private loan, which is 2 percent. How do you settle social loans? The borrower is obliged to settle the tax on private loans and the investor is obliged to settle the capital gains tax.

Is it worth investing in social loans?

Investing in social loans involves quite a lot of risk, as investors can never be guaranteed of getting their money back. However, every investment carries a risk, except for savings accounts and deposits, and the higher the risk, the greater the potential profit.

Can investments in social loans pay off, then? Yes, especially since you can minimize the risk of capital loss by diversifying your invested money. Social loans provide much more profit than bank deposits or treasury bonds.

Social loans – how to invest?

Social loans - how to invest?

To start with, you need to choose the portal you want to work with. Each of the websites operates according to different rules, so the proposed methods of risk assessment or collateral for loans in the event of non-repayment may differ.

Therefore, before you start investing, read the terms of service carefully and check the amount of fees charged.

Advantages and disadvantages of social loans

Social loans have their pros and cons.

Advantages of social loans:

  • wide loan offer,
  • money for any purpose,
  • high loan amounts,
  • inference without leaving home,
  • high loan granting,
  • voluntary verification,
  • you don’t have to have a good credit history,
  • loan costs negotiable.

Disadvantages of social loans:

  • service fees,
  • no legal regulations protecting the investor and the borrower,
  • risk of fraud
  • costs related to additional verification,
  • waiting for a loan longer than in a bank or loan company.

Are social loans secure?

Are social loans secure?

Unfortunately, there are no legal solutions regarding loans of this type in Poland. We will get the payday loans much easier than a bank loan. That is why it is really safe to use them.

Both lenders and borrowers should use portals with an unblemished reputation and an established market position. Before taking out a loan, read the terms of service.

A person considering taking out a social loan should realistically assess his financial capabilities and choose a liability in the amount that will not be a problem for him to pay back. Social loans with an interest rate of over 10% or too high commission should be rejected immediately.

After selecting the offer, and before signing the contract, you should carefully read its content, and any doubts as to the provisions contained in it must be clarified with the lender or lawyer.

A system of low-interest loans for enterprising graduates has started

From November 17, graduates, students and the unemployed will be able to apply for up to 74 thousand. USD low-interest loan for starting your own business.

The loans will be granted as part of the second stage of the “First Business – Startup Support” program, initiated by the Ministry of Labor and Social Policy, whose aim is to break the labor market, counteract unemployment and promote employment. The program is implemented in cooperation with Bank Good Finance.

The interest rate on the loan will be 0.56%. per year

The interest rate on the loan will be 0.56%. per year

You can apply for it: unemployed persons regardless of age, registered at the employment office; graduates of private or public universities within 4 years of receiving the diploma; high school graduates within 4 years of receiving the diploma; final year students. The repayment period for such a loan is to be 7 years, with a one-year grace period.

Young people are very enterprising, have new, great ideas, and our role is to support these ideas. Over the next few years, we plan to allocate USD 500 million to the development of entrepreneurship – said Władysław Kosiniak-Kamysz, Minister of Labor and Social Policy.

To obtain a loan

To obtain a loan

You must contact the financial intermediary operating the program in the given voivodship (their list is available. These are Good Finance’s financial partners selected in the tender that deal with consulting, appraisal of applications, granting loans and monitoring repayments.

To run your own business you need an idea, courage, and determination. We are pleased that at the pilot stage students and graduates decided to take advantage of the loan and work “on their own” – said Vice President of the Management Board of Bank Good Finance Radosław Stępień at the ceremony of signing contracts with agents. – I hope that the unemployed as eagerly as graduates decide to self-employment because it will give them great independence and allow them to believe in their own strength – added President Stępień.

The land register for building loans

Every year thousands of households fulfill their dream of owning a home. The whole thing is realized as a house purchase or purchase of a condominium. Many families also simply build new ones. In addition to own funds, the building loan is usually used here.

At the latest in connection with the application for building finance, the client comes across the land register and department I-III. What exactly is marked here? Who keeps the land register?And why are departments I-III so important in the land register?

The land register – more than a simple register

The land register - more than a simple register

Forerunners of today’s land register can already be found in the Middle Ages, some documents date from even earlier times. The idea behind this is to precisely grasp real estate in its extent and the ownership structure.

In the end, the land register is a directory to:

  • Ownership
  • Loads and restrictions as well
  • Mortgages,

that affect a property. To make the land register clearly structured and legible, the copy has been established in the departments I-III. Each of the individual departments has its own purpose.

What is in the land register?

What is in the land register?

The main task of the land register is to record and archive all relevant data on a property. In this context, several issues must be recorded that are assigned to the individual departments.

Department I records all information on the ownership structure. Here, among other things, the name of the owner, the reason for registration and the number of the property are noted.

Section II shows all the burdens and restrictions (except the mortgages) with which the property in question is provided. These can include:

  • Housing and usage rights
  • Usufructuary rights
  • Sales rights or
  • Leasehold

his. In addition to noting the charges, deletions are also noted in the land registers.

The department relevant for the building loan is III. Information on mortgages – i.e. mortgages or land charges – is recorded here. By the way, the ranking is of crucial importance, since subordinate rights can sometimes not be satisfied through enforcement.

Land register entry and mortgage lending

The departments I-III in their entirety make up the land register. Department III is really important for the building loan.

Since banks generally have an interest in first-class collateral for mortgage lending, prime mortgages are required. In the course of the loan application, banks therefore require inspection of the land registers. And financing only comes about if everything fits.

You only have to pay back the loan

Selling a mortgaged flat is not too complicated, you only have to pay back your current loan.

The easiest way is when the buyer wants to buy an apartment for cash. Then he simply transfers the amount corresponding to the level of debt to the creditor’s bank account, and the remainder of the receivable is received by the seller.

It should be remembered that in some banks there is a commission for early repayment of the loan, which may amount to e.g. one percent of the repaid amount.

Bank approval required

Bank approval required

Some complications can arise if the buyer wants to take out a loan. A new bank can be registered in the mortgage only after deleting the old one, which in turn will agree to delete it after receiving the money due.

It is, therefore, necessary to describe in detail in the notarial deed how the transaction will be carried out so that the interests of both banks are secured.

If the amount of mortgage debt is lower than the transaction value, then the rest of the money goes to the seller’s account.

However, it is worth knowing that a mortgaged apartment cannot be sold without the opinion and consent of the bank that is included in the mortgage, and – if the buyer intends to take out a loan – the other bank. So first you need to settle these formalities, and sometimes it can take up to two weeks.

Own contribution problem

cash

Sometimes complications can arise if … the buyer has his own contribution. Imagine the following situation: Fine Bank has 100,000 USD cash and buys an apartment from Nowak for 400 thousand USD – missing 300,000 USD will want to finance with a mortgage.

But Nowak’s apartment is mortgaged with a debt balance of 350,000. USD. Fine Bank demands a certificate on the current debt balance, which is normal, and it may take, for example, two weeks to issue it.

The condition for running the loan is that the amount of debt should not be higher than the amount of the loan, so first you must (from the cash held by Fine Bank) pay off part of the loan. In most banks, notary confirmation of the transfer of the missing 50,000 would suffice, but there are institutions on the market that will demand another certificate of the debt balance and we have a two-week delay.

The case may also be delayed due to the dates of booking operations. There are banks that book their full loan repayment only on a specific day of the month (usually on the installment payment date). If we are late with this operation for a few days, we will be almost a month late.

Such situations, however, occur quite rarely, most often it is possible to arrange everything efficiently. Some of those who bought a flat with a foreign currency loan have a problem.

First of all, exchange rates change every day. The debt balance certificate usually includes the loan amount in currency and its equivalent in USD, converted at current exchange rates as at the date of issue of the document. If after a few weeks the loan is disbursed, it may turn out that the amount is not enough to repay the existing loan.

Sometimes the course bothers

cash

Due to the weakening of the zloty, it may be that, given the current exchange rates, we owe the bank much more than when we took out the loan. For example, if someone borrowed 400,000 two years ago USD in Swiss francs, today it owes the bank over 600 thousand. USD. Such a person has a debt level of 50%. higher than the value of the property, which significantly hinders its sale. Practically makes it impossible.

To get rid of such an apartment you would have to add 200,000 USD. Unfortunately, such people are indeed imprisoned, but this is not due to the mortgage itself, but the unfavorable turn of events in the currency market and falling real estate prices.

Loans without BIG – where to look for offers?

What is BIG?

What is BIG?

BIG stands for Economic Information Bureau – it is an institution that collects data on debtors and makes them available at the request of authorized entities. The register receives information about enterprises with arrears to their contractors and natural persons (consumers) who are behind with payments, e.g. due to utility bills.

Only entities that operate on a basis may use BIG names Act of 9 April 2010 on sharing economic information and exchanging economic data. Banks and cash loan companies mainly use these four:

  • ERIF Economic Information Bureau,
  • BIG InfoMonitor,
  • National Debt Register BIG,
  • National Bureau of Economic Information.

The above BIGs keep registers of debtors independently of each other. Therefore, if you have a backlog of payments, you can reach one of them, all of them, or none. It depends on your creditor, who may or may not add you to the database. If he chooses to do so, certain conditions must be met:

  • Your debt must amount to at least USD 200,
  • the repayment delay should be a minimum of 60 days,
  • written information about enrollment in BIG should be provided to you a month earlier.

So before you start looking for a loan without a BIG, check to see if it appears at all.

The lender will check your credit standing while verifying the application. For this purpose, it may download a report about you not only from the BIG registers, but also from the BIK (Credit Information Bureau). In the latter case, your reliability in the repayment of credit obligations towards banks and loan institutions will be assessed.

Is a loan possible without BIG?

Is a loan possible without BIG?

If you are interested in loans without BIG, then you will find them primarily among the cash products described in the Act on consumer credit of May 12, 2011. It is it that regulates the granting of loans for any purpose up to USD 255,450, where the lender can be both a bank, as well as a company offering e.g. payday loans online.

The aforementioned Act imposes on all lenders obligations related to granting loans, which includes, among others assessment of consumer creditworthiness. Art. 9, which directly indicates the possibility of using various databases for this purpose.

Fortunately, the legislator gives financial institutions full discretion as to the choice of registers. And this means good news for you – a loan without BIG is possible because you only need to find an institution that does not use the register in which your debt has been entered.

For example, if the arrears appear in the BIG InfoMonitor database, you have the chance to receive financing from a company that checks only KRD.

How to apply for a loan without BIG online?

How to apply for a loan without BIG online?

In practice, people who appear in debtors’ registers have the greatest chance of obtaining cash on the non-banking market. Loan companies are simply much more lenient about assessing their clients’ creditworthiness than banks.

What’s more, many of them operate online it is advertised that it offers loans without BIG via the Internet. Pay attention to them if you urgently need cash with a negative entry in your debt register.

If you already find the right institution, it will take you literally a moment to apply for a loan, because to do this you need to do the following:

  1. Register on the loan service by providing data such as: name, PESEL, number and series of ID card, place of residence, bank account number, telephone number and e-mail address.
  2. Select the amount of the liability and the date of its repayment – in the case of payday loans it will be one-off and specified in days, while in installment loans it will be calculated in months.
  3. Accept the terms of financing (note the APRC, i.e. the total cost of the loan).
  4. Pass identity verification, e.g. by transferring 1 penny to the indicated account.

The above procedure takes several minutes, including waiting for the credit decision. If your application is approved, you can count on transferring funds on the same day.

Who are the loans without BIG for?

Who are the loans without BIG for?

People who have debt entries in such registers are interested in loans without checking the BIG databases. If the lender does not download reports on the client from such institutions, he will not find out about the debt, which increases the chance for a positive assessment of creditworthiness and for receiving financing.

It is worth remembering, however, that having an unpaid liability may make repayment of the loan difficult. The debt collection procedure usually does not end with placing the debt in the BIG register – the creditor may at any time refer the case to court and then enforce the repayment with the help of a bailiff.

Additional debt in the form of a loan obligation can therefore further complicate the situation. So before you reach for a loan without a BIG, analyze your finances, and it’s best to try to settle the arrears before submitting an application for additional cash.

Where to look for loan offers without BIG?

Where to look for loan offers without BIG?

If you want to use a loan without BIG online, you can choose a quick payday loan with a repayment deadline of up to 30 days or an installment loan that can be repaid in installments even for 24 months or more. There are many institutions offering such products and most of them check various databases while verifying applications.

Fortunately, most companies report which registers they use. You can find out from their websites, e.g. in the regulations or the FAQ section. In this way you can find an institution that does not check the Economic Information Bureau in which your debt appears.

As you can see, there is no company offering loans without BIG – only some of them check only selected databases, which gives certain opportunities to people who appear only in one of the registers. It is also worth remembering that currently 90% of loan institutions check BIK, i.e. the Credit Information Bureau.

When looking for a loan online, you may come across ads from private lenders who offer quick financing without checking BIK, BIG or any other database. They are usually natural persons who borrow their own capital without unnecessary formalities, but expect very high interest rates in return. Such expensive loans under a promissory note are very difficult to pay back, which is why debtors should avoid them.

Is it worth taking a loan without BIG?

Is it worth taking a loan without BIG?

The biggest advantage of commitments made without checking the databases is that non-bank companies also offer loans for indebted people. In the case of online payday loans, obtaining financing is very simple and does not require many formalities – all you need is an ID card, your own bank account and income enabling repayment of the liability.

It is worth remembering, however, that people who have a debt entered in the BIG register should not, in principle, incur further liabilities, because they increase their debt. So you should always be reasonable and use convenient financial products after a thorough analysis of your financial situation.