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Borrower Support Fund – the first attempt to help borrowers in need

The Borrowers Support Fund will be launched at GFI at the beginning of 2016. Its establishment and functioning are regulated by the Act on support for borrowers in financial difficulties who have taken out a housing loan.

The fund, which will exist as part of Bank Good Finance, is to dispose of USD 600 million. Its creation will be financed by banks.

Establishment of the Fund

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The establishment of the Fund in the expected form is a compromise between the demands of Swiss franc holders and the scope of assistance that banks were ready to offer.

Finally, it was decided that not only franchisees but all borrowers who have problems with repayment will be able to count on help. This should be assessed positively, as this has avoided favoring one group.

And so, people paying back mortgages who are in a difficult financial situation will be able to apply for support in the amount of up to USD 1,500. USD per month (if the installment of the monthly commitment is lower, support will be reduced to this level).

The loan is repaid in a foreign currency

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If the loan is repaid in a foreign currency, GFI will convert the amount of the support installment into the currency of the loan repayment according to the sale exchange rate announced by the National Bank of Poland on the day preceding the day of payment of these funds.

The money will be able to be paid out for a maximum of 18 months and will then have to be returned. The borrower will have to return the funds obtained in this way within a maximum of eight years, thanks to the possibility of applying for the debt to be divided into installments. A nod towards borrowers is that they will pay back exactly the amount they have received because the return will not be interest-bearing.

Who can apply for interest-free assistance? The program is targeted at people who have lost their jobs (those who have submitted their termination notice or have been disciplinarily dismissed) will not benefit, as well as those whose installments exceed 60%. household income.

The bill was positively received by the banks. Admittedly, it imposes some obligations on them, but representatives of these institutions cited in the media emphasized that the creation of the Fund will have an undoubted advantage: it will raise the level of social responsibility of the banking sector.

The legitimacy of helping foreign currency loan holder

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They also hope that this will end discussions about the legitimacy of helping foreign currency loan holders because under certain conditions each borrower will be able to use the help.

The Swiss franc loan holders themselves are not exaggerated enthusiasts of the new regulation, because they expected (and even more: proposed specific solutions) something more, primarily the conversion of their loans.

The adopted proposal does not solve their problem, because the repayments are carried out according to the existing rules, and disputes with banks will still be resolved in individual processes.

The solution is, however, beneficial from the point of view of USD loan holders, because they were not excluded from the program. Restricting access to assistance because of the currency in which they took the loan was considered unreasonable and discriminatory.

Finally, the assumptions of the Act in the current formula are beneficial from the point of view of those citizens who have no credit or have no loan but have no problems repaying it.

Money for the existence of the Fund does not come from public sources, so they will not be charged to the budget, and they are also refundable, so no one will be able to claim that some borrowers got some gift from the bank – and it is known that banks do not have their money, so for help, all other customers drop off (in short).

We will find out in a few months how the Fund will actually work and whether it will fulfill the hopes it has placed. May his offer be directed to people who really need help and save them from the spiral of debt, which is easy to fall after the first installment not paid on time.

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Long-term loans without certificates

In colloquial language, the term loan is used interchangeably with credit, but these are two separate concepts and two different financial products. See what are the characteristics of long-term loans without certificates!

Long-term loans without certificates – what is this?

Long-term loans without certificates - what is this?

Below we present in seven points how long-term loans without traditional loan certificates differ:

  1. The loan can be granted only by the bank, and the provisions related to it are specified in the Banking Law. The loan can be granted by a natural person or a financial institution, and the rules for granting it are set out in the Civil Code.
  2. The loan is granted for a specific purpose, e.g. purchase of an apartment, car or other consumer purposes. The loan can be used by you for any purpose – you have no obligation to provide it.
  3. Granting a loan always involves signing a loan agreement, which will specify the terms of the loan: parties to the contract, loan amount, interest rate, commission, repayment schedule. A loan of up to USD 500 can be taken without a contract, but in the case of higher amounts, you must also sign it.
  4. The loan agreement is regulated by the Civil Code, therefore it does not have to be specified in the loan repayment date. Unlike a loan, the loan can be free.
  5. The subject of the loan may be money or other items, labeled by grade, quantity, measure or weight. Therefore, the loan does not have to concern only financial resources, as is the case with a loan.
  6. The loan is granted from the bank’s clients’ funds and is not your property. The loan is the property of the lender and once it is received it becomes your property.
  7. The loan is always granted in the form of a transfer, while the loan can be obtained in the form of cash.

What distinguishes long-term loans without certificates?

What distinguishes long-term loans without certificates?

Unlike payday loans, long-term loans can be granted for a longer period of time, for example, half a year, a year, 3 or even 10 years. Loan companies usually use APRC in their offers, i.e. the actual annual interest rate, covering all costs of the loan, not just its interest rate.

Some also provide an effective annual interest rate for a given loan, which is a mathematical measure of investment profitability describing the change in investment value at the end of subsequent interest periods. This means that if you take out a loan for 2 years, you will be calculated on an annual basis – so you can easily calculate the real cost of your loan.

Unlike loans, long-term loans without certificates do not require lengthy and complicated procedures – submission of employment, earnings and business certificates. The loan company will also not always check your credit history – it is very beneficial for people who have had problems paying their debts.

However, there are financial products that you can only receive as an ID card, provided you have a good credit history and you receive income from a proven source.

Minimizing all procedures means that loans without long-term certificates are much easier than loans and can be obtained by almost anyone with real income. The very process of granting a loan from submitting an application to receiving money is very short, while the procedure for granting a loan may take about a month. Therefore, if you only need an amount of up to USD 7,000, a loan is a more convenient and profitable solution, provided that it has no hidden costs.

Long-term loans without online certificates – how to find them?

Long-term loans without online certificates - how to find them?

You will need the internet to find a good financial product. It is worth checking individual offers on the Good Finance website, where you can easily compare loan offers from different companies.

All you have to do is enter the payday loan category, narrow down your search to loans, select a long repayment period in the search engine, e.g. 2 years, and then enter the amount you are interested in, e.g. 10,000 Here is the list of results:

As you can see, loans can vary significantly in terms of costs, which also affects the high difference in monthly installments.

Long-term loans – expert summary Good Finance:

When analyzing offers, pay attention to the actual annual interest rate (APRC), taking into account both interest and commission, as well as the provisions in the contract regarding penalties in the event of late repayment.

Some loan companies apply drastic penalties – they also count large amounts for reminders, payment requests or even texting. Also, try not to borrow in the form of a long-term loan without certificates of too large amounts (max. Up to USD 10,000) and do not take loans from several institutions to avoid a spiral of debt.