Loans in Poland
Poland is a central European country that has become the number one destination for expats and foreigners seeking employment. It is also known as the most affordable among all European countries where finding an apartment at a pocket-friendly cost or buying a car within your budget is not a hardship.
But, instead of stepping into a comparably cheaper country, you must get a detailed account of various Polish loans. So, if you are in search of a fresh and hassle-free beginning in Poland, let’s start reading.
Personal loans in Poland
A personal loan refers to the sum of money obtained by an individual for personal expenditures and not for any commercial purposes. The money gets used in buying services or products that have a limited self-life. Money borrowed for academic objectives, car buying, mortgage, purchasing furniture are examples of personal loans.
Those, who have just moved to Poland and are going to stay here for a while, must require personal loans for buying essentials for themselves. In this country, you can request cash loans that will get allotted to you within 2 to 3 weeks without collateral. You can apply for a personal loan online or at a branch of your chosen bank.
Car loans in Poland
Expats who are going to stay in Poland for a few years must get their hands on a car. But, instead of investing your hard-earned money in a new car, you should explore several banks and lenders who provide car loans all over Poland.
Polish banks provide both secured and unsecured car loans for purchasing both new and used cars. In terms of repayment, car loans are generally installment loans. In Poland, car loans vary from month to 0 years. For instance, if you take a loan for a used vehicle in Poland, you have to repay $16.73/ month with an interest rate and APR of 1.99%. You have to continue it for 24 to 63 months. (The Polish National Credit Union)
Student loans in Poland
Education is free for Polish citizens. But, if you are a foreigner, it will vary. In this country, several commercial banks provide students loans for higher study in different fields. The repayment starts after two years from the graduation of the student. PKO Bank Polski S.A, Bank PEKAO S.A, SGB Bank S.A, and other Polish banks provide students loan.
Bank loans in Poland
After opening a bank account in a Polish bank, you can apply for a bank loan from the bank. However, taking loans from Polish banks is easier for residents, as an expat, you need to provide banks with certain documentation including your ID proof, credit score, last three months salary slip, employment paper, resident proof, and so on.
You can select any banks among PKO Bank Polski S.A, Bank PEKAO S.A, SGB Bank S.A, mBank, BNP Paribas, Bank Millennium, etc. for bank loans in Poland.
Home loans in Poland
Purchasing a new residence in Poland as an outsider is a little tricky until you understand all terms and conditions of a Polish mortgage loan thoroughly. Polish banks and private lenders deliver mortgage loans to foreigners based on some essential documentation.
Most Polish lenders provide loans up to 60-80% LTV and most affordability inspections stipulate your outgoing should never overstep 35% of your monthly income. As an expat, you must provide a permanent employment contract for getting a home loan in Poland.
FAQ about loan providers in Poland
You can take loans for various purposes. Some take loans for home improvement or home buying, where some for purchasing cars. On the other hand, you can take loans from different lenders for higher study, business, etc. But, remember, no loans cover your day-to-day expenses.
It depends on the category of loan you are opting for, your income, your economic stability, credit record, and your requirements, etc. A credit score tends to be the most significant factor while borrowing money from a source. If you have a decent credit record, you are likely to get more cash than those with comparably poorer credit records.
There are several ways of applying for a loan. Firstly, you have to select a lender, who provides loans. It can be a bank or any other platform. You can call them, send them emails, apply online, or directly meet them for more information.
If you somehow fail to repay your loan, you should immediately contact your lender without delay. The lender may set a new repayment method and contract at your convenience.
A repayment holiday refers to the time when you anyhow fail to repay the borrowed money to your lender. While taking a loan, you have to sign a term and conditions agreement. But, if you somehow fail to give back your money on that certain period due to unemployment, maternity, any pandemic, or other issues, it is called a repayment holiday.
The full form of APR is the Annual Percentage Rate. As the name suggests, APR is the annual percentages rate in which you have to pay back the borrowed money to the bank.
A secure loan compels you to deliver the lender an asset, which can get used as collateral for your obtained capital. For instance, when you take a loan for buying a house or mortgage, the money you take as a loan must be required to get repaid by you after a certain time. If you can repay it, the house is all yours. But, in case, you cannot, the lender will occupy the house.
On the other hand, in an unsecured loan, you do not have to provide the lender with any asset as collateral for receiving a loan. Student loan, personal loans, and credit cards are some examples of unsecured loans.
A secured loan contains a downward interest ratio as compared to an unsecured loan.