The concept of cash loan
A cash loan is a type of cash loan that can be granted for any purpose we choose. In order for us to receive any amount of money, we must have so-called creditworthiness. It is calculated on the basis of our earnings, and the size of our permanent commitments and our family situation are taken into account. The credit granting procedure itself is not complicated. TV commercials show that cash loans are currently the most expensive banking product. You can take it for a year or two, but you can also opt for long-term loans, which pay back up to eight years, you will choose the one that is right for you.
Cash loans are granted by financial institutions, which are usually banks.
A characteristic feature of a cash loan is that it can be granted for any consumer purpose chosen by the individual customer. It may also be granted in the form of a consolidation loan, in other words it may be taken to repay the borrower’s other obligations. The 2001 Act specifies the maximum amount of cash loan that a bank can grant us. This amount may not exceed eighty thousand zlotys. A characteristic feature of the cash loan is also the short loan period. Most often it is six years. However, there are also loans, which are paid back even for ten years. Every loan has very high interest rates, which can reach even 20% per annum. This is really a lot.
Cash loans have many advantages.
One of the biggest is the procedure by which the borrower’s creditworthiness is checked. It is fast and not complicated. Another advantage of a cash loan is a very quick decision whether we will receive this loan at all and provide us with the loan funds quickly. The bank has really little requirements for the borrower and does not require any collateral for this loan. Exceptions are loans where a third party is required who is a person who is a resident of such a loan. He is the person who guarantees our loan. In other words, the resident is responsible for our obligations in the event that we stop paying them.