Maximum cost of credit or loan – check it out!

The cost of each financial liability usually consists of interest and commissions and fees. In addition, the borrower taking out a loan and failing to meet the repayment date must bear the costs of the recovery procedure and penalty interest. How much can the borrower cost the loan in the end?

 

Interest cost limit – currently at the level of 10% per year and non-interest cost limits regulate the amount of final costs associated with the loan. 

 

Maximum interest on the liability

Maximum interest on the liability

The loan is usually a payable obligation, and the remuneration for the lender is primarily interest. If the loan is granted in the amount of up to USD 255 550, it will be considered a consumer loan under the relevant provisions. Also these regulations indicate the limit of interest costs related to the granted loan.

 

The maximum amount of interest on the loan, as well as on other consumer loans, may not exceed twice the statutory interest on an annual basis. In turn, statutory interest is equal to the sum of the reference rate of the National Bank and 3.5 percentage points. Currently, this rate is only 1.5 percent, so after increasing it by 3.5 percentage points we get 5 percent. This means that the lender will not be able to collect from the borrower, on the loan granted, interest higher than that calculated at a 10% interest rate.

 

Non-interest costs also limited.

Non-interest costs also limited.

Loan companies could quite freely shape their policy of fees and commissions charged to customers in relation to the loan granted. This is no longer possible today. Among the costs associated with the loan, there are also non-interest costs, not related to the interest normally charged by the lender. Pursuant to the Act on Financial Market Supervision and the Act on Consumer Credit, a non-interest cost limit was introduced. Their amount may not exceed the sum of:

  • 25% the total loan amount and
  • 30 percent variable amount depending on the loan period and loan amount.

It is worth emphasizing that all non-interest charges related to the loan may not exceed 100%. total loan amount. The new regulations have imposed on entrepreneurs conducting loan operations the obligation to return to the consumer all fees if the loan is ultimately not disbursed and the loan agreement is not concluded.

Is there a chance for a cash loan without certification?

 

Generally, when applying for a bank loan, the borrower must apply to the bank for the loan, along with many documents. Among them are also certificates. Will they be necessary in every bank to be able to get a cash loan?

 

A cash loan without income certificates can be taken at several banks in the country. The customer makes a statement about the amount of income or otherwise confirms his financial position in a way desired by the bank. 

 

What certificates are needed?

What certificates are needed?

 

When applying for a cash loan, banks require potential borrowers to submit many different documents. By default, these are certificates on the amount of income or employment and the type of contract. However, banks are often willing to make some concessions on the list of such certificates, but they still need to have some basis for calculating creditworthiness.

This ability is the ability to pay principal and interest installments on the dates indicated in the contract. If you do not need to submit income statements, how do you calculate your creditworthiness?

 

Borrower’s declaration

Borrower

 

Earnings or employment certificates are not mandatory when applying for a loan at many banks. Instead of certificates, banks accept customer statements. These are declarations they make under threat of criminal liability, regarding the estimated amount of income they receive every month. The bank can always verify such information, for example by contacting the borrower’s employer and asking him to indicate the amount of his remuneration.

 

Other documents needed for a loan

Other documents needed for a loan

 

Bank may confirm the client’s financial situation in a different way than on the basis of earnings statements or declarations of the borrower. May request an extract from the account bank or a copy of the tax return PIT.

If the customer is applying for a cash loan in his bank, where he already has a personal account , the bank can only ask him to provide the account history. It will quickly track cash flow and on this basis assess whether the customer can afford a loan.

 

In which bank credit without certificates?

In which bank credit without certificates?

 

Based on your loan application and account statement, you can get a cash loan at Fine bank online. You can borrow up to USD 50,000 in this way. The customer must provide in the loan application the details of the employer or the company he runs.

 

Income certificates are unnecessary when applying for a cash loan of up to USD 150,000. A micro-cost loan is available, and customers who already have an account can apply for an online loan without income statements.

How much do you have to earn to get a cash loan?

 

When assessing an application for a cash loan, the information on the client’s monthly income is taken into account. They should be high enough to be free enough to pay the loan installments with interest and to retain the customer.

A simple bank loan

A simple bank loan

Actually, cash loans can be found in the offers of all banks in the country. These are commitments that allow you to finance any borrower’s credit goals. The bank does not impose the manner in which the money from such a loan is to be used, nor does it require the customer to establish additional collateral for its repayment. Of course, sometimes it may happen that the purpose of lending is defined, but this is not a universally binding practice.

Who is the cash loan for?

Who is the cash loan for?

Customers with a complete loan application, including the required attachments, and good creditworthiness and good history have a chance to obtain a cash loan. loans in the Credit Information Bureau.

At the same time, creditworthiness is understood as the ability to repay the liability in a timely manner, together with any interest and additional charges. It is obviously influenced by the amount of income that the customer receives when applying for a cash loan at the bank. How high must this income be in order for the bank to comply with the loan application and make the commitment?

Individual examination of the loan application

Who is the cash loan for?

In fact, every person who earns, whether on a contract of employment, contract of employment or on account of a pension, has a chance of positive consideration of the application for a cash loan. The Bank individually approaches its assessment and calculates the creditworthiness on the basis of the algorithms used. A low salary does not have to immediately exclude the client from applying for a loan, but it will definitely work against him.

Banks take DTI into account when assessing the creditworthiness of their clients. It specifies the percentage share of credit obligations in the borrower’s household budget. Most often, loans are considered a safe DTI, where the amount of the commitment will not exceed 1/3 of the client’s earnings. In turn, the Financial Supervision Authority stated that in the process of assessing the creditworthiness of retail customers, banks should pay special attention to situations where the DTI exceeds 40 percent. for clients, the income not exceeding the average level of remuneration in a given region of residence and 50% for other customers. Currently, the banks themselves ultimately set the maximum DTI.

However, following the instructions, when applying for a cash loan in the amount of USD 10,000, where the monthly installment will amount to USD 850, the client would have to earn at least USD 2,100, to preserve 40 percent. DTI indicator. In practice, however, such income may not be sufficient, because the client’s other monthly liabilities and the amount necessary to maintain it should be deducted from them.