Students will receive more credit

The educational boom in Poland is coming to an end, and universities are beginning to feel the effects of demographic change.

Despite this, student loans are still quite popular

student loans

Over 387 thousand students and doctoral students have benefited from this form of support since 1998. In the new academic year, this number of beneficiaries may increase by another 5000 – 6000.

Persons interested in a student loan should be aware of important changes that apply from now of each academic year. The first of these is the shortened deadline for submitting credit applications and other necessary documents.

Instead, several modifications have been made that are beneficial to students. Credit help from the state is now higher and more flexible. After the changes, candidates for students can also use it.

This time the student must complete all formalities by December 31

student loans

Changes in the rules for providing financial assistance to students were introduced by virtue of the ordinance of the Minister of Science and Higher Education of July 5, 2016 (Journal of Laws item 1013). The aforementioned legal act reduces the time for applying for a preferential loan.

In the 2016/2017 academic year and subsequent years, loan applications together with the necessary annexes can be submitted from August 15 to October 31, 2016. Earlier, the deadline expires November 15 new academic year. Another change concerns the time to sign the contract with the bank. This deadline was unfortunately shortened to 31 December 2016. In the previous year, the conclusion of the preferential student loan agreement was possible until the end of March.

I wonder what new the Ministry of Science and Higher Education (Ministry of Science and Higher Education) has introduced is the possibility of applying for a student loan by persons who do not yet have the formal status of a student or doctoral student.

I am talking about students / doctoral students submitting an application before the beginning of the academic year. Such applicants will conclude an agreement with the bank after confirming their status as a student or doctoral student. Earlier, the bank will consider their application on the basis of a document confirming participation in the recruitment or admission to the studies (first, second or third degree).

From this year, the bank will pay a student up to USD 1,000 a month

From this year, the bank will pay a student up to USD 1,000 a month

Other changes in the rules for granting student loans relate primarily to the amount of the monthly payment. It must be mentioned that from the 2016/2017 academic year it is possible to choose one of four loan amounts paid out throughout the duration of education:

  • 400 USD / month (reduced amount)
  • 600 USD / month (basic amount)
  • 800 USD / month (increased amount)
  • 1000 USD / month (increased amount available from the 2016/2017 academic year)

Do you need more credit? 

student loans

The payment of the highest monthly loan amount will be possible if the bank decides that the student’s collateral is sufficient (the collateral evaluation deadline is November 20). If the collateral for each of the possible amounts (up to USD 400 / month) is not accepted by the bank, then a loan application from a competitive institution can be submitted by November 30, 2016. Importantly, the new rules for the payment of student loans provide for the possibility of changing the monthly amount during the term of the contract. Thanks to this, a student or doctoral student can adjust the amount of credit assistance to their needs (e.g. reduce it after starting work).

It is worth mentioning that from the 2016/2017 academic year there is also another income limit per person in the applicant’s family. This change is only of a formal nature, as the limit is exactly the same as the year before. A student loan can be applied for by people whose family earns up to USD 2,500 / month per member. The vast majority of students and doctoral students interested in credit will not have a problem with meeting this income criterion.

As a summary, it is worth adding that the remaining rules for student loans did not change (related to, among others, payment of funds, preferential guarantees of BBS and BBA, establishing interest rate and debt cancellation). We discussed all these issues in our last year’s article in the series ‘Discounts, subsidies, exemptions’.

A review of quick loans – May 2018

As part of the “FREE LOAN” promotion, the first loan is free provided it is repaid on time. The cost of another loan of USD 400 for 30 days is only USD 109.84.

Possible amount of the first loan

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The possible amount of the first loan is from USD 100 to even USD 1,500, and the repayment period is up to 2 months. A larger loan limit (up to USD 7,000) and a longer repayment period (up to 12 months) are foreseen for regular and repayment customers.

The lender checks the information appearing in the registers: A loan for persons from 18 years of age. The customer can confirm the bank account number using the Instantor application.

Actual Annual Interest Rate (APRC) 0% under the following assumptions: total loan amount USD 1,500.00; total amount to be paid USD 1,500.00; variable interest rate per year 0%; total cost of the loan USD 0, including: commission USD 0, interest USD 0; 2 month period, 2 monthly equal installments of USD 750.00 each.

The calculation was made as at March 6, 2018. on a representative example. In the absence of timely repayment, costs will be charged in accordance with the Loan Agreement or

Installment Loan Agreement.

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A representative example of a loan not covered by the Terms and Conditions of the ‘Free loan I’ promotion. Actual Annual Interest Rate (APRC) 741.96% under the following assumptions: total loan amount USD 1,500; total amount to be paid 1950.04 USD; variable interest rate per year 0%; total cost of the loan USD 450.04, including: commission USD 450.04, interest USD 0; 2 month period, 2 monthly equal installments of USD 975.02 each. The calculation was made as at March 6, 2018. on a representative example.

Honest Bank – As part of the promotion, the first loan is free. The cost of another loan with the same parameters (USD 400, 30 days) is USD 80.00. The amount of the first (free) loan from USD 100 to USD 3,000. The limit for regular customers is USD 7,500.

The lender checks the information appearing in the registers: The lender does not require income proof documents. A loan for persons aged 19 – 78 years. As part of the recommendation program, Honest Bank pays USD 30 for acquiring a new borrower.

Across Lender – As part of the promotion, the first loan is free. The cost of another loan with the same parameters (USD 400, 30 days) is USD 80.00. The amount of the first loan from USD 100 to USD 2,000. Under the next loans, the client may receive up to USD 4,000.

The lender checks the information appearing in the registers. A loan for persons aged 21 – 65.

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Good Credit – As part of the promotion, the first loan is free. The cost of another loan with the same parameters (USD 400, 30 days) is USD 98.00. The amount of the first loan from USD 100 to USD 1,500. Under the next loans, the client may receive up to USD 4,000.

The lender checks the information appearing in the registers: A loan for persons aged 20 – 72 years. The lender may require account statements for the last 3 months. As part of the recommendation program, the company pays USD 50 for acquiring a new borrower.

Cheap Loan – As part of the promotion, the first loan is free. The cost of another loan with the same parameters (USD 400, 30 days) is USD 100.00. The amount of the first loan from USD 200 to USD 3,100. Under the next loans, the client may receive up to USD 6,000.

Take out a fast foreign credit for Germans.

Usually, borrowing is not a big deal in this country. If the customer meets the conditions of the bank, the credit is almost certain. The positive Credit Bureau is one of these conditions. Anyone who has negative entries in it will not receive a loan from a conventional bank. As there are more and more consumers struggling with a bad Credit Bureau, the credit market has opened up to this and now offers a foreign loan for Germans. But what is this loan all about?

Foreign credit for Germans – the situation

Foreign credit for Germans - the situation

Anyone who looks around the Internet reads Credit Bureau-free loans, loans without Credit Bureau and with Credit Bureau, with a credit check and without, the advertising promises roll over. This can be very confusing for the less knowledgeable loan seeker. So here are a few tips to get a serious foreign loan for Germans.

Cream banks are very cautious when a customer makes a loan application and his Credit Bureau is bad. But why is Credit Bureau so important, some ask? Credit Bureau has contractual partners such as banks, telephone companies, insurance companies and mail order companies. For example, if a customer does not pay his cell phone bill, the telephone companies will report it to Credit Bureau. The mail order company does the same. If an installment is not paid, this will be reported to Credit Bureau.

From these entries it is then possible to see what the customer’s payment behavior looks like in the past. If the bank queries Credit Bureau because a customer has made a loan application and they receive the message that there are negative entries, the bank must assume that they will no longer see their installments. The loan is rejected because the bank’s risk of default is too high. But Credit Bureau is not only important for service providers; when renting an apartment, the landlord asks Credit Bureau how the customer meets his obligations.

So it can happen that the negative entry is the desire for the new dream apartment in the stars. So you can see that the Credit Bureau is a powerful instrument, but it can also be seen for the protection of the customer. If the bank did not refuse some loans or the mail-order company refused to pay some installments, even more people would be over-indebted.

The loan brokerage

The loan brokerage

But the desire for a loan is raised, even if the house bank or another Cream bank does not approve the foreign loan for Germans. Here remains the Credit Bureau-free loan that came mainly from Switzerland until 2009. As of this year, however, there are only intermediaries based in Switzerland. After an internal dispute, Agree banks were prohibited from lending to Germans. The reason was a lack of a banking license.

A license from Liechtenstein has had this license since 2010. Fine bank is currently the market leader among Credit Bureau-free loans. However, this bank does not have a German representative, so that the foreign loan is almost exclusively through credit intermediaries. The customer can get direct access to the bank via the simple website. But experience has shown that loan agencies can provide Germans with an easier foreign loan for their customers.

The customer should only contact the reputable agencies. The years of activity in the financial market should serve as an indication. Even if the brokerage does not require any upfront costs and refrains from signing dubious insurance contracts, a credit broker can be the solution, especially for difficult loan cases. In addition to the Litebank, he knows other banks that still grant a loan to a negative Credit Bureau.

The conditions

The conditions

However, the loan seeker must expect that a credit agency will not work for nothing. In addition to the foreign loan costs for Germans, the intermediary’s commission is added to the foreign loan. However, he is only allowed to offset this once the loan has been approved.

The loan from Liechtenstein moves with manageable loan amounts. Only three small loan amounts are provided. On the one hand 3,500 USD, the most approved loan, then with the best credit rating 5,000 USD and recently 7,500 USD. The rate for the first-mentioned loan is USD 105.00, for the USD 5,000 loan USD 150.00 and the USD 7,500 repaid with USD 225.00. The interest rate is around 11-12%, depending on the creditworthiness.

The terms of all three loans are 40 months. The bank does not ask Credit Bureau, and the loan is not entered. A loan is approved if the loan seeker has a sufficiently high income that must be above the garnishment-free limit. A permanent job, which must have existed for at least one year, is very important; for 7,500 USD, a job of four years is required.

The employment contract may not be limited and may not be given a trial period. The self-employed and unemployed, students and often also pensioners will usually not receive this foreign credit for Germans. The unemployed, the pensioner and the student receive state benefits that cannot be attached. The self-employed usually have no stable income.

Loan seekers for the foreign loan for Germans must be of legal age and should not be older than 62 years (previously 58 years, has been raised). The place of residence and the current account must be found in Germany. The bank does not query Credit Bureau, but takes a look at the public debt register. If there are credit terminations, oath of disclosure, bankruptcies or enforcement notices and attachments, the bank will not approve the foreign loan for Germans.

As experience has shown, this type of loan is not only applied for by customers who suffer from Credit Bureau. The customer who is planning a larger financial project also uses this type of loan, since the loan does not appear in the Credit Bureau and therefore the house bank is not informed about a loan. The good credit rating is therefore retained.

Before applying for a foreign loan for Germans, the customer should definitely draw up a budget. He compares his income with his expenditure and sees whether there is still financial scope for a rate. This is also important, because if the loan can no longer be paid, the bank will initiate the garnishment. A corresponding certificate is expected before the loan approval.

 

The bank does not classify the 9,000 dollar loan as a risk.

Although 9000 USD is a substantial sum, it still falls under the category of small loans. You can move things around with it, a good used car, a new kitchen or a new bathroom. However, the 9000 dollar loan should not be taken up somewhere, but the interest rate and the other conditions should be checked. The use of these loans is often free. The bank does not classify the 9,000 dollar loan as a risk.

Of course, an overdrafted overdraft facility can be replaced with a 9000 dollar loan. The customer is well advised to do this, because the overdraft facility is an expensive loan that has a double-digit interest rate and is therefore very expensive.

The location and credit comparison

The location and credit comparison

The loan seeker should know that before banks give a 9,000 dollar loan, they should check the creditworthiness of the customer. The income that is received regularly is put to the test. The Credit Bureau must not have negative entries and permanent employment is required. If the customer can meet these conditions of the bank, a loan is also approved. However, the prospects are not good for all loan seekers.

An income / expense plan should generally be drawn up before each borrowing. This shows whether a loan can be paid at all and how high the rate may be. All income is compared with the expenditure and in the positive case, a remaining amount remains. However, according to financial experts, this should not be invested entirely for a rate, but only 1/3. The other part should be placed on the high edge.

This leaves a smaller financial buffer that can be used for the unforeseen. Generally, a rate should always be adjusted according to income. One should also remember that the financial situation as well as the personal situation of a borrower can always change. Think of an unexpected unemployment or a serious illness with subsequent disability. These situations reduce income, so that often an installment can no longer be paid.

It should be noted that the installment is based on the loan term. If the customer chooses a longer term, he pays low rates and vice versa. The loan will be a little more expensive with a longer term, but the installments remain affordable. If there is an income, however, that high installments can be paid, the short term can be chosen, because then the loan is paid cheaper and faster.

That is why it is always important to set the installments in such a way that creditworthiness is also ensured in such cases. A 9000 dollar loan can be useful for many reasons. Of course, the loan comparison should also make sense, which should always be done before a loan application. The customer enters the loan amount, the term and the desired rate and receives at a glance all providers who provide a 9000 dollar loan.

After selecting the provider, the customer can submit the loan application immediately. However, the customer should know that the interest shown is not an option for every customer. Interest is usually calculated depending on the creditworthiness, which means that if you have a good credit rating, you will also receive a favorable interest rate. The customer will receive his personal interest with his loan offer.

A 9000 dollar loan has a longer term, the customer should make sure that the interest rate is fixed. The focus should not only be on the interest rate, a cheap loan also has free special repayments and installment breaks. If no free special payments are explicitly noted in the loan agreement, the bank can calculate a prepayment penalty.

Since 2010 only 1% of the remaining amount, but at least. If a debt rescheduling is to be carried out at the bank where the old loans were granted, no prepayment penalty is due. A rate break or two is also advisable. A short-term financial shortage can thus be bridged.

The negative entries and their consequences

The negative entries and their consequences

Generally, a loan seeker can assume that if he has negative entries in his Credit Bureau he will not receive a loan from a conventional bank. The risk of default is too high for the banks, because the negative entry signals to the bank that in the past there had been payment problems. If cash is urgently needed, the Credit Bureau-free loan could be a solution.

Credit Bureau-free loans fall under the specialty of credit brokerage. They act as an intermediary between the customer and the bank. Even with difficult credit relationships, loan brokerage still promises a solution. If the customer searches the internet for Credit Bureau-free loans, he is practically overwhelmed by the flood of advertising. All possible loan variations are offered. If the customer believes only a fraction of this, he is well advised.

That’s how many loan offers you get

That

If you hire a credit broker, you should make sure that no upfront costs are due and that no insurance contracts, such as building society contracts, should be signed for a 9000 dollar loan.A serious credit broker does not need these practices;

The funds come from abroad and only three loan amounts are made available. One time 3,500 USD, 5,000 USD and 7,500 USD. Unfortunately, the lending bank does not deviate from the amount of the loan, so that the customer lacks a certain loan amount. If he has predestined himself for the 7,500 USD loan, he could perhaps withdraw the missing 1,500 USD from his overdraft facility, provided that this has not been exhausted.

If this is not possible, a restriction in the loan amount might be possible. But that is up to the customer to decide. In addition, the credit broker could try to arrange a 9000 dollar loan with a German bank. Reputable intermediaries also know German banks that can still find lenders with a Credit Bureau entry who do not view a negative entry as seriously.

In order to be predestined for a Credit Bureau-free loan, the customer must have an income that is above the garnishment-free limit. In the case of a single, that would be around 1,100 USD net. There must be a permanent position, which is not permanent and has existed for a year.

 

Advantages of loans for civil servants

A loan for civil servants is very good. Anyone who works in the public service not only has a job that is almost impossible to quit, but can also look back on a solid income. Banks are very fond of this professional group and accordingly offer good conditions.

The overview approve a loan for public servants

The overview approve a loan for public servants

When banks approve a loan for public servants, they see the risk of default as very small, which leads to the best loan conditions. There are even banks that specialize in this clientele and offer special loans. Banks reward this professional status with particularly attractive interest rates, but the loan amount and the term should also be in the foreground for these loans. Therefore, civil servants should also compare loans and look at various loan offers.

The civil service employs employees in the administration of municipalities and cities, the state and federal states. The large official churches also have employees in the public service, as do employees in hospitals or university hospitals. The loan for civil servants can also go to other professions. This includes employees at the post office, soldiers and city employees.

All of these people receive a loan for civil servants if their credit rating allows. They all have a secure job, which reduces the risk of default in banks. Even with the loan amount, the banks will not be fooled. In this way, loans of up to USD 100,000 can be approved. This enables the employee to finance a property or to buy other high-priced things.

The loan for civil servants is similar to that of the civil servant. This means that a term of up to 20 years is granted. This results in a very moderate installment payment. This means that a property can be purchased as an old-age provision in early years. The security that the job offers this professional group is similar to that of an official and is almost unbeatable. The salary is safe and the receipt of the money is on time, because the state finally transfers it.

Likewise, the priority is the non-termination, job cuts will not occur, at most they will be used elsewhere. The bank assumes that civil servants will repay their liabilities on time. Banks estimate the risk of default very low, which ensures that public sector employees have the best credit conditions.

Find the right loan

Find the right loan

Banks offer special loans for employees in the public service and offer attractive conditions. If the employee looks at the direct banks that offer almost exclusively government loans, he gets a very cheap loan. The default risk is almost zero. With a quick comparison calculator that can be performed online, public sector employees get a real overview of the best lenders.

The so-called civil servant loan as a loan for civil servants is a combination of credit and life insurance. A loan and life insurance are taken out. The term of the loan and the term of the insurance are the same. If the loan term comes to an end, the life insurance also ends. The loan is paid with the sum insured. In addition to the long term, the moderate repayment is also advantageous.

Generally, the term civil servant loan and civil servant loan is not protected. This means that this form is often referred to as a civil servant loan. The combination of saving and capital borrowing has almost no advantages these days. This shows additional costs in high agency fees and very expensive insurance. If you are still interested in it, you should carefully check the conditions before concluding a degree.

Nonetheless, there is still a great benefit to the official loan. The combination of credit and insurance is shown in small installments during the term. The added benefit should not be forgotten, because the debtor’s family is protected in the event of an emergency. A separate residual debt insurance is therefore not appropriate. Financing with life insurance offers additional security and is therefore cheaper than an official loan.

The loan for public servants only receives a special group of people and convinces with favorable terms. The employee can use the credit comparison to make a condition request, which does not have a negative impact on creditworthiness.

When applying for a loan for civil servants, the application should mention the public service circumstance, as the automated verification process then approves a loan that has no discounted terms.

The credit rating is one of the safest employers around

The credit rating is one of the safest employers around

The public sector loan has a good lobby because the state is one of the safest employers around. The state does not apply for bankruptcy, it does not go bankrupt, so that a secure salary receipt for the employees and also the salaries of the officials is guaranteed. After three years, the civil servant rose to become a civil servant. Anyone who has achieved this no longer needs to worry about their future with regard to the workplace.

That’s how many loan offers you get

That

The salary of civil servants is often equal to that of civil servants. Therefore, there are many employees as well as civil servants who can be found in a better residential area. This fact also has a positive influence on the Credit Bureau score. Likewise, the financial situation of the employees in the public service is excellent, there you can find a property or a condominium, often several cars, securities or other money reserves.

Many loan seekers do not even know that banks are guided by certain values ​​of civil servants because of their lifestyle. Because employees as well as civil servants attach great importance to financial security paired with a good reputation. Those who are in the civil service do not take any risks, their life usually runs in calm waters.

Banks assume that the clientele does not take any risks, whether financial or personal, that they save and lead an exemplary life than, for example, other borrowers. But despite all seriousness, employees in the public service should not live above their means and take out a loan that they can also pay. Even if the debts are to be paid quickly, nobody should overwhelm themselves.

 

Rolling loans in the light of applicable law

The phenomenon of rolling out loans, i.e. extending their repayment several times for an additional high fee, had to disappear due to the introduction of non-interest limits on the cost of loans. They were replaced by refinancing in subsidiaries of the lender

What is rolling loans?

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Even before the new provisions of the Anti-usury Act were implemented in Poland, a common practice in loan companies was the so-called rolling out loans. This involves postponing the repayment date for an additional commission. Many customers use this option when they were unable to pay their commitment on time.

The problem is that the commission charged for extending the repayment period was higher than the cost of entering into the commitment. Under the new Act, this is no longer possible in the current way, due to the introduction of a new limit of loan costs – interest and non-interest.

Limiting the cost of loans

Limiting the cost of loans

Each loan company must comply with the limits on the cost of loans regulated by the anti-loan laws. As part of non-interest costs, the lender may charge a client no more than 25 percent. the loan amount and 30% of this amount per year (part of the variable costs depends on the length of the loan period).

For example, if the loan is 1 thous. USD and is granted for a month, it will not be able to cost more than the sum of USD 250 and USD 25 – a total of USD 275. In addition, the lender can charge a maximum of 10%. interest per annum.

As part of non-interest expenses, they are also expected to match the costs associated with postponing the loan repayment date.

It is also worth emphasizing that according to the new set loan cost limits are calculated from the amount of the first loan granted to the client, but the loan company must fit in them Also in any subsequent loans granted to the same customer within the next 120 days.

Refinancing instead of rolling out loans

Refinancing instead of rolling out loans

Rolling loans still exist, although lenders do not earn as much as before. Commissions for extending the repayment deadline fell.
Another way to bypass the limits on non-interest charges and the ban on rolling out loans is to grant a loan to pay back your previous commitment.

Such refinancing is possible if the customer took out a loan in one loan company but a refinancing loan in another. At that time, there are no total cost limits for the loan, but separately for each liability.

Meanwhile, both loan providers may be dependent on each other.

Student loans suffer from lack of interest

Cheap student loans with an interest rate of 0.875% throughout the year students are less and less popular. In the 2016/2017 academic year, only 4,444 such loans were granted, while a few years ago there were several dozen thousand of them.

Financing conditions under a student loan

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In the last academic year, the maximum income per person in a family entitling to grant a student loan is USD 2,500. All student years of study, including doctoral students, are eligible to apply for a student loan. All you need to do with your loan application is to submit your income statement.

Banks participating in the student loan program pay a maximum of USD 1,000 a month for the entire duration of their studies.

A student loan is a specific form of credit because it is paid out in monthly installments throughout the entire academic year, and should be started only after 2 years from leaving education in higher education – in preferentially low installments. Its interest rate is half the rediscount rate for bills of exchange – currently 0.875%.

Diminishing interest in student loans

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Since the beginning of the program of preferential student loans, they have already been granted 394,000. In recent years, however, there has been a decreasing interest in such financial support from the state for students.

As early as in the 2010/2011 academic year, 22 880 student loans were granted and not 24 246 students applied for. In subsequent years, there were fewer and fewer applications.

In the 2016/2017 academic year, according to data from the Ministry of Science and Higher Education, 4444 student loans were granted, and 4456 people did not apply. A year earlier, only 0.38% of students in Poland benefit from a low-interest student loan.

Students decide to take out a student loan

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So it turns out that today less than 1 percent. students decide to take out a student loan, and this is despite the decrease in student demand and the increase in the maximum income entitling them to grant a student loan. The decline in interest in student financing may be due to the demographic decline.

Another factor determining the low level of interest in student loans is that 41% of all Polish students live with their parents while studying, therefore they do not need as much money to support their studies.