Non-bank loans fees charged by loan companies on the internet as well as fixed-line companies. Check what costs, apart from the interest rate on the loan, may be related to a non-bank loan.
You should be very cautious with those lenders who require you to pay fees before concluding a contract. It is best not to use the services of such entities. If you have to sign a complicated, long and very often incomprehensible preliminary agreement – also in this case, look for another loan company.
Unfortunately, from time to time information about pseudo loan companies appears, whose main source of income is the acquisition of potential customers and collection of receivables due to a loan promise. After paying such a fee, the company refuses to grant a loan, for example, justifying it with a lack of adequate creditworthiness or lack of appropriate security. What’s worse, companies do not pay back this money!
Commission non-bank loan
What is the commission for a cash loan and how it affects the total cost of the liability in the loan company.
The commission is the remuneration for granting the loan. The most common cost of the loan (next to interest).
It is determined mainly as a percentage of the amount borrowed, eg 20% commission, PLN 5000 loan, commission is 1000 PLN. Of course, the higher the loan amount, the higher the commission amount will be. With a cash loan of PLN 3,000, the 20% commission is PLN 600.
In principle, the commission is payable at the beginning of the contract period and can be charged:
- from the consumer’s own resources,
- or by deducting from the loan or loan amount borrowed.
In the case of short-term non-bank loans (up to 30 days), so-called “Chwilówki” commission is payable at the end of the loan period. So the consumer gives the money borrowed + commission + interest + any other costs.
Registration fee. Cash loans
The fee is charged mainly by loan companies operating on the Internet. It is collected once, by registering on the website of the loan company. Registration is necessary to send a loan application and get the first loan. It is also a verification fee to confirm the compliance of personal data in the loan application with the data on the account. It is usually a transfer for 1 PLN (but they happen for PLN 1 and even PLN 10 – in the latter case it is better to give up the services of such a loan company).
From the loan company’s point of view, an internet verification transfer is an activity corresponding to presenting an ID card when concluding a contract with a fixed loan company.
The cost a consumer has to incur for processing a loan application. Increases the total cost of the loan.
The additional preparation fee in the case of a cash loan of character is similar to the service charge at home. Otherwise, it is a cost that must be borne by the consumer for delivering money to the house. The fee is usually high in relation to the amount of the loan granted and increases the total cost of the loan.
House service fee
It is an additional service, the cost of which is borne by the consumer, for collecting loan installments at home. Encountered only for non-bank loans.
The representative of the loan company comes to the customer’s home and personally receives the installments. The amount of the fee depends only on the loan company and is included in the installments. This means that in the case of 10 installments, the cost of home servicing is divided into 10 parts and similarly to more or less installments.
Home service very often increases the cost of such a loan. If the loan company provides such services, it is worth asking if there is also a loan option with an account transfer.
The name indicates (and very often misleads) that it is a fee, the purpose of which is to reimburse the costs of the activities incurred by the lender as part of granting and managing the loan.
In fact, however, it performs various functions and is heterogeneous. It may be an entrepreneur’s remuneration for a loan, in other situations it may be a combination of commission and preparation fee. In the case of payday loans, it is payable at the end of the loan period, in other cases usually at the beginning. It may also be included in the monthly installment and is not dependent on the amount of the loan.
Costs for securing a cash loan
Fees related to the establishment of collateral for repayment of a loan or a cash loan. It may be obligatory to use group insurance, individual insurance, etc. The provisions of the loan agreement may provide for the collection of insurance fees by the loan company. The lender then charges a consumer insurance fee, because in the case of group insurance, the lender is the party to such a contract and at the same time the entity paying the insurance premium.
Of course, such a fee should correspond to the costs borne by the lender in connection with insurance. In the case when such insurance is required, it is worth asking about the possibility of concluding an insurance contract individually. Finding a better offer, we conclude an insurance contract and present the lender’s policy. A better insurance offer means a lower cost of the loan.
Non-bank loans and additional information
Information on January 4, 2019: interest for borrowing money can not exceed 10%. annually (twice the NBP reference rate increased by 3.5 percent).
All non-interest costs can not amount to more than 25% of the financing amount (in the first year) and up to 30% of the loan amount (in each subsequent year).
All non-interest charges may not exceed 100% of the total funding.
When comparing the offers of loan companies, pay attention to the APR (Actual Annual Interest Rate). It is the cost of the loan, expressed in percentage of the amount we borrow. Before concluding the contract, the lender is obliged to provide us with an information form in which all the costs of the loan are presented.
Follow some basic rules to avoid a “false” loan company:
- Do not sign a contract if you do not understand its provisions.
- Ask for clarification of all ambiguities and details.
- Renounce a loan offer if the entity offering it does not want or can not explain the loan rules.