Price increases for the holidays and demand for loans

November 28 2017 Poles are lending more and more, which does not mean that they are getting worse. Salaries are rising, along with the demand and creditworthiness of individual consumers. However, this situation has the other side of the coin, inflation is also rising, which means price increases. This year prices have been rising fastest in several years. How will this affect holiday spending? Find out if the increase in prices will contribute to greater interest in consumer loans in the pre-Christmas period.

Expensive Christmas shopping

Expensive Christmas shopping

Prices in Polish stores have been rising since the beginning of the year. There is no indication that they were to slow down before Christmas. Forecasts say that the upward trend is continuing. Christmas shopping will strain your pockets. Price increases can be felt the most when buying basic products. According to the Central Statistical Office in 2017, food prices increased the most – prices increased by 5.8%. This year, the Polish family plans to spend PLN 342 on Christmas delicacies, while the entire budget declared is PLN 882 1 . Such a large one-time expense induces some compatriots to finance Christmas with a Christmas loan. This solution may enjoy greater popularity than a year ago, because in 2017 Poles will have to reach deeper into their pockets. They will feel it especially when butter, eggs, meat (both beef and pork), dairy products and fruit and vegetables are on the shopping list. Apart from the increase in butter prices, the biggest impression is made by egg prices. According to the Polish Press Agency, egg prices in October were 40% higher. in relation to June prices, and it is possible that before Christmas they will be even more magnificent.

What are the reasons for rising food prices?

What are the reasons for rising food prices?

Inflation in Poland in 2017 oscillates around 2%. Increases in food and energy prices have a significant impact on this situation. Where should you look for the reasons for this price gallop? Why did butter increase in price almost twice? Where do the rising prices of eggs come from? There is no reason for rising inflation. For example, eggs become more expensive because domestic supply has fallen. Fipronil, a toxic substance that has been detected on farms in Western Europe, is the culprit. The fipronil scandal caused Polish producers to see a significant increase in interest in native eggs in the countries of the “old Union”. Exports to the west contributed to the increase in prices on the Vistula. The reasons for the increase in butter prices should be looked even further, because in the US and China. In 2017, a much larger demand for this product could be observed in the two countries mentioned above. Increased interest in two huge markets combined with a decrease in butter production resulted in horrendously high prices known from store shelves. The most prosaic reason lies at the root of price increases for fruit and vegetables – we can blame the poor weather conditions.

However, inflation is also affected by less objective factors. Prices often rise together with wages. Higher wages of Poles drive demand. Since consumers are buying more, producers are trying to take advantage of the situation. How? Raising prices. The combination of price increases and demand often also results in increased demand for loans that serve the satisfaction of Poles’ consumption needs. As in the lens, it can be seen before Christmas – before Christmas and Easter, interest in loans increases.

Planning your home budget before Christmas

Since Poles are waiting for dear Christmas, it is worth preparing for them. There are methods to reduce Christmas spending. By planning your home budget well in advance, you can save a lot on holiday shopping. People who stock up on presents in November can hunt a lot of products at promotional prices. All they have to do is go shopping on Black Friday or Cyber ​​Monday.

Black Friday in Poland, similarly to the rest of the world, falls on November 24. It is a day when sellers offer customers products at very attractive promotional prices. Cyber ​​Monday works the same way, i.e. Monday after the weekend set by Black Friday, with the difference that it is intended for online sales.

Aside from buying presents during promotions, it’s a good idea not to wait until the last days before Christmas. Do not fund your accumulated expenses during the highest Christmas fever. If you don’t leave your purchases at the last minute, you may avoid having to repair the budget with an online loan. By assigning expenses for Christmas two or three months earlier, it is easier to predict the budget and any gaps in it. If you already know in October that you will run out of several hundred zlotys in December, ask your family or friends for a loan. They are more likely to help you in October than just before Christmas, when a large part of the budgets can barely be reached. Fortunately, as the results of the Deloitte study show, a smaller and smaller group of consumers leaves shopping at the last minute. This year it will be 6 percent less than last year.

In turn, before you start filling shopping baskets with kilos of groceries, remember last year’s Christmas. How much food from the Christmas table was wasted in 2016? Throwing out Christmas dishes doesn’t have to be a holiday tradition. Save yourself expenses, don’t buy what you don’t need.

Will consumer loans finance Christmas?

The dynamics of consumer credit market development is positive. Such a conclusion results from a cyclical study organized by the Conference of Financial Companies in Poland and the Institute of Economic Development of the Warsaw School of Economics. The upward trend on the loan market should strengthen in the last year’s months. These data, combined with the information that Poles take out consumer loans, most often for the purchase of everyday items 2 , suggest that in many families the beginning of 2018 will be associated with the need to repay holiday loans.

Since countrymen plan to spend less than PLN 900 on organizing Christmas, it is difficult to assume that they would need large sums from external sources. A large proportion of consumers will probably ask loan companies for help. The non-bank segment is gradually increasing the share in the loan market to PLN 4,000. In 2016, 25% benefited from low-value non-bank loans. borrowers. Online loans are supported by easy and quick access, which is a huge advantage when we are looking for financing just before Christmas.


Real Estate Loan Insurance: What is the Delegation of Insurance?

As we know, mortgage insurance is not legally required to obtain a mortgage. but it is required by banks. Borrowers do not have much choice.

On the other hand, they are not forced to accept the insurance offer of their bank. They can call on an outside agency. This operation is named delegation of insurance, it was instituted by the Lagarde law in 2010.

Why opt for insurance delegation?

Why opt for insurance delegation?

For the record, the insurance offered by the banks are called “group” insurance. These are collective offers offered by banks to their customers with shared risks. And who says “collective offers” says “non-personalized offers”.

This is the interest of the insurance delegation. This solution makes it possible to benefit from a personalized insurance and thus, potentially more advantageous. Premiums will be calculated according to your profile (age, occupation, health, smoking or non-smoking…) and the remaining capital.

Important: your bank can not refuse an insurance offer delegated, provided that the guarantees of the new offer are identical to those it had originally proposed.

When to call for insurance delegation?

When to call for insurance delegation?

You have 3 possibilities:

  • at the time of the negotiation of your mortgage ;
  • within one year after signing the mortgage. During this period, you can cancel your contract in favor of another borrower insurance. This is a provision of the Hamon law ;
  • on each anniversary date of the contract. After the one year period introduced by the Hamon law, you can change insurance as many times as you like.

A last tip: if you want to make a delegation of insurance, rely on the TAEA (effective annual rate of insurance) offers issued by insurers.

This indicator must appear on all insurers’ offers, as provided for in Article L311-4-1 of the French Consumer Code. Its standardized calculation method (ie the difference between the TEG with insurance and the non-insurance TEG) makes it possible to better compare the offers of mortgage insurance.


The mortgage loan in Europe is doing well

What is the reality of the mortgage market in Europe? The latest study published by Finance Crediter Bank answers this question. The conclusions are clear: the activity is dynamic, despite strong disparities between countries.

Most of the credits subscribed in Europe concern real estate

Most of the credits subscribed in Europe concern real estate

More than 6 billion euros! This is the amount of outstanding European mortgage loans in 2016. It sounds both huge and abstract, but it is a good result since it represents an annual increase of 3.1%. Over the 2011-2016 period, outstandings accelerated to + 9%. By outstanding amounts, Finance Crediter understands the amounts due including capital and interest.

Another significant result of the good performance of real estate credit in the Old Continent: the amount above is the vast majority of loans signed by households ( 88%). Per household owner, this represents an average of € 40,700.

All European households are not indebted in the same way

All European households are not indebted in the same way

” Even if the use of credit remains very uneven from one country to another “, Finance Crediter was able to identify four major groups:

  • Northern Europe (Denmark, Finland, Ireland, United Kingdom and Sweden, 18% of the population) has the highest household debt ratio (34% of mortgages in Europe, € 80,164 per household owner ). The reasons ? “The dynamism” of the markets, combined with the use of credit in fine, an attractive taxation and traditional links with credit;
  • Central West Europe (Germany, Austria, Belgium, France, Luxembourg and the Netherlands, 37% of the population), accounts for 45% of outstanding loans from the European Union. The average outstanding per capita amounts to 45%;
  • Southern Europe, made up of Cyprus, Spain, Greece, Italy, Malta and Portugal, representing 25% of the population. Households are less indebted: 18% of outstanding mortgage loans, for an outstanding amount per household of € 27,111;
  • Eastern Europe (Bulgaria, Croatia, Estonia, Hungary, Latvia, Lithuania, Poland, Czech Republic, Romania, Slovakia and Slovenia, 20% of the population). Households are even less indebted: 10% have a loan, outstanding accounts for 3% of home loans and amounts to € 6,033 per household.

And France in all this?

And France in all this?

The French borrowers are in 9th place, a ” middle” position close to Germany:

  • outstanding mortgage loans account for 64% of gross household disposable income, just below the European average (67%), and even well below some countries (128% in the Netherlands and 194% in Denmark).
  • the amount of outstandings represents 12% of households’ non-financial wealth, compared with a European average of 15%;
  • the share of homeowners with a current home loan amounts to 31% of the population.

Falling property rates across Europe

Falling property rates across Europe

” While the decline in interest rates has been very significant across the European Union, not all European households have benefited in the same way. ” To establish this observation, Finance Crediter evaluated the joint effect of changes in bank rates and real estate prices during the 2008-2016 period.

As a result, borrowers in countries with declining real estate prices saw their purchasing power rise dramatically, notably in Spain (+ 84%) and Italy (+ 53%). A previous Finance Crediter survey published last December already noted this gain in purchasing power among our Iberian and transalpine neighbors.

Conversely, the rise in some European countries (United Kingdom, Germany) is such that it covers the gain in real estate purchasing power generated by the fall in credit rates.

France, it is in the first category. In terms of purchase area, households gained 30% in 2016 compared to 2008.

And you, you plan to buy but have not yet launched your project? To have the best credit proposals, we advise you to compare real estate loans.


Credit and loan – what is more profitable?

September 17, 2018 Credit and loan differ in many ways. The main difference is that the loan is taken from the bank and the loan from the non-bank institution. What is the difference between a loan and a loan? First of all, the amount, loan period and cost. If you don’t have time to read the entire text, then take a look at the summary at the very end.

Credit and loan – basic differences

The definition of credit and loan are formally different. These concepts are considered to be the same by many consumers. This is probably due to the fact that the essence of both is borrowing money. Both credit and loans consist of transferring a specified amount of money to the client for a specified period of time.

The main difference between a loan and a loan is due to the type of financial institution that grants these obligations. You can only apply for a loan at the bank. It is a traditional and well-known form of financing for larger enterprises. The equivalent of credit is online loans from non-bank loan companies. Another difference is that banks have a statutory order to verify the customer’s creditworthiness at the Credit Information Bureau. On the other hand, non-bank institutions do not have such an obligation, therefore they can grant loans without BIK.

Which solution is chosen more often? A report from the Credit Information Bureau “Credit trends” shows that in 2017 there were 105,000 housing borrowers and 74,000 consumer borrowers. In turn, 101.3 thousand new loan companies increased. new customers. About 80 percent out of 498 thousand borrowers are in the process of paying off bank liabilities.

Bank loans and non-bank loans are becoming increasingly popular. Before signing the contract, it is worth getting to know the basic differences between them, i.e. legal regulations, terms and type of contract, the loan period and the possible amount of the liability and the costs associated with it.

What is a bank loan?

Credit terms are regulated by the Banking Law. As provided for in Article 69 of the Banking Law, “By means of a loan agreement, the bank undertakes to make available to the borrower for the period of time specified in the contract an amount of cash for a specific purpose, and the borrower undertakes to use it under the conditions specified in the contract, to return the amount used loan with interest on specified repayment dates and payment of commission on the loan granted. ”

The loan agreement should be in writing. It must specify, among others aspects such as:

  1. parties to the contract,
  2. loan amount and currency,
  3. the purpose for which the money will be allocated (the exception is cash loans),
  4. rules and repayment deadline,
  5. interest rate,
  6. way of securing repayment,
  7. total cost of the commitment.

The minimum amount of credit that can be obtained depends on the selected offer. The maximum loan amount may be affected mainly by the creditworthiness of the future borrower. The loan may amount to hundreds of thousands of zlotys. With such high liabilities, a security of repayment is required, e.g. in the form of a mortgage, to limit credit risk. In addition, banks require income declarations. The so-called employment contract, however, in some cases credit for a mandate contract is possible.

A bank loan has a long repayment period. It depends on the type of loan, but the longest can reach even 50 years. The bank does not grant a cash loan, but only transfers the amount specified in the contract to the client’s account. In addition, the bank has the right to control how borrowed money is spent.
The cost of the loan consists of:

  • amount borrowed
  • loan interest rate,
  • loan commission,
  • loan margin
  • administrative fees for preparing the contract.

The cost of both the loan and the loan will help calculate the APRC calculator.

Types of bank loans – what do borrowers choose most often?

Banks are constantly expanding their credit offer. Customers can use credit cards to finance smaller expenses. They allow you to use the bank’s money within the monthly limit granted to us. It is a short-term solution because the debt must be repaid after a maximum of two months.

When financing larger expenses, larger loans tailored to the borrower’s purpose and individual needs may be useful. The most frequently used types of loans are:

  • Consumer loan – this is a loan for any purpose not related to business activity, e.g. purchase of a TV set or household appliances. It is incurred for lower amounts. The repayment period can be from several months to several years. This type of liability is secured by the borrower’s income or other people’s sureties.
  • Investment loan – intended for the implementation of projects increasing the borrower’s assets, e.g. purchase of shares or long-term securities. It is a commitment for about 8-10 years. The condition for obtaining is the presentation of a business plan.
  • Mortgage – granted for the purchase of real estate or construction projects. It is characterized by a high amount and long repayment period – even several dozen years. The mortgage collateral is the so-called mortgage established for the bank.
  • Consolidation loan – is another type of liability. It involves the combination of several liabilities into one loan, thanks to which it is possible to reduce the monthly installment and facilitate repayment of the debt.

Non-bank loan – what is it?

Non-bank loan - what is it?

Unlike loans, the terms of non-bank loans are regulated by the Civil Code. As provided for in Article 720 § 1 of the Civil Code, “By a loan agreement, the loan provider undertakes to transfer to the recipient the ownership of a certain amount of money or items marked only as to the species, and the recipient undertakes to return the same amount of money or the same amount of items of the same species and same quality. ”

Non-bank loan companies are gaining more and more customer confidence. Most of them offer unsecured loans and guarantors. The loan period may reach up to 48 months. The maximum loan amount is set out in Article 3 of the Consumer Credit Act.

We read in it that “Consumer credit agreement means a credit agreement in the amount not exceeding PLN 255 550 or the equivalent of this amount in a currency other than Polish currency, which the creditor grants or promises to grant to the consumer in the scope of its activity”.

Unlike a loan, the loan agreement does not have to be payable. The lender also does not impose a method of spending money. The total cost of taking out a loan is calculated similar to a loan agreement. Many companies offer loans to new customers for free. The APRC loan consists of:

  • amount borrowed
  • commission and interest rate on the loan,
  • loan margin
  • administrative fees related to the preparation of the contract, verification in databases ect.

Types of loans

The process of applying for non-bank loans is done online. The most recognizable feature of online loans is: a minimum of formalities, a quick decision by the lender and an immediate transfer of money to the account – a loan in 15 minutes is possible. The main products offered by non-bank institutions are:

  • payday loans – quick low-value loans with a loan period of 30, 60 or 91 days,
  • installment loans – long-term loans (up to 48 months) for high amounts repaid in monthly installments.

The offer of non-bank loan companies is constantly expanding. Therefore, products tailored to the specific needs of consumers are created. Entrepreneurs can take advantage of the business loan, while borrowers with low creditworthiness can take advantage of the loan and buy a car.
Some institutions also offer loans without checking databases and even loans for those in debt.

Differences between a loan and a loan – summary

The main difference that can be seen between a loan and a loan are the available amounts and the possible repayment time. The offer of non-bank financial institutions is definitely more limited. The reason is the institution’s capital – with a non-bank loan, the money must be the lender’s property. The bank grants loans not only from own funds, but also from funds deposited by its clients.

Higher recoverable bank loans have their price. It is very thorough verification of borrowers. Both creditworthiness and creditworthiness are assessed. The credit process can take a long time and require a lot of formalities.

Applying for a loan is definitely faster and is usually done completely online or by phone. Potential borrowers are checked in databases such as BIK and BIG, however, loan companies are characterized by greater flexibility and individual approach to each client.

The amount of formalities is also smaller. Many lenders offer loans without income statements.


Loan Insurance: Why Change Borrower Insurance?

Have you heard about the Bourquin law ? Effective for all mortgage insurance contracts since 1 January 2018, new legislative means freedom and savings to all consumers who wish to break the contract of insurance of their mortgages in particular. But why is this good news?

The borrower’s insurance change is now!

Real estate loan insurance rhymes more than ever with freedom. The Bourquin amendment is a continuation of the measures put in place to free the borrower insurance market. Since 2010, the Lagarde law authorizes the setting up of a delegation of insurance. New prospects open up again in 2014 with the Hamon law allowing a cancellation of mortgage insurance within one year after signing. It is finally the amendment Bourquin that comes to concretize this claim of freedom by offering to the borrowers the possibility to change mortgage insurance insurance and this, on each date of birthday!

One way to save money…

One way to save money...

The Bourquin amendment offers greater freedom to borrowers, but also the possibility of considerable savings ! Indeed, by playing with competition and changing insurance, the expected savings can be as high as a quarter of the total cost of loan insurance. A real estate mortgage insurance simulation will allow you to appreciate your future savings.

Increase the level of guarantee

Increase the level of guarantee

Is it as simple as it seems to change mortgage insurer? Defined by the CCSF (Financial Sector Advisory Committee), a list of criteria allows banks to determine whether or not there is an equivalence of collateral between the initial contract and the new contract. If it is a rental investment, the bank will simply require the guarantees Death and Total and irreversible loss of autonomy. On the other hand, in the case of a residential investment, the bank will require not only the Death and Total and Irreversible Loss of Autonomy guarantees but also the Total Temporary Disability and Total Temporary Disability guarantees.


Cash machine – loan for proof of how it works.

Cash machines, i.e. devices enabling the loan application to be filled, have become a solution for many consumers for a temporary lack of money when shopping. Half a year has passed since the debut of these machines on the Polish market, which is why we decided to check whether this method of reasoning has accepted in our country despite many fears.

What is a cash machine?

What is a cash machine?

Shortly after the holidays, devices appearing in the shape of ATMs appeared in several major Polish cities. However, unlike an ATM well known to all, a cash machine requires an ID card instead of an ATM card. Cash machines allow not only the request for payday loans, but also its immediate payment.

Who can use the cash machine

Who can use the cash machine

The first cash machines that appeared in our country offer the possibility of borrowing funds exclusively at Viloan. The company operating the machines is open to attract new partners, if the project is accepted it seems to be a matter of time when the loan offer will be extended. It is worth noting that the criteria for granting loans are the same for both online applications and cash applications.

How cash machine works

How cash machine works

To complete the loan application in cash, we need an ID card and a mobile phone. First, select the loan parameters and complete the basic data, as well as provide your mobile number. Then we scan the ID card from both sides and use a camera located above the keyboard to take a picture of ourselves. This is an extremely important step in the process of completing the form, because the employee of the loan company is required to accurately compare the photo from the ID card with the photo taken by the machine. An SMS reply is sent after about 15 minutes to the telephone number indicated in the application. If the decision is positive, then just go to the machine again and enter the code provided in the message, so that the money will be paid to us.

Security and cash

Security and cash

Just before the launch of the machines, there were many concerns about consumer safety. The speed and convenience that the cash machine guarantees us does not always go hand in hand with 100% security. It should not be said, however, that cash machines threaten us more than outlets where you can get payday loans in 15 minutes. In both cases the final decision on granting a loan or rejecting an application is made by a person. A qualified employee of a loan company who thoroughly verifies both the application and photos – it is compared with the ID card to the one that was made when filling out the application. In addition, devices detecting false ID cards are installed in the cash machine. If, for example, our ID is stolen and reported to the police then there is no chance that the thief, who in the photo would look exactly like us, would obtain a positive loan decision.

Despite security assurances, not everyone wants his ID card to be scanned in a crowded shopping mall, which is understandable. Cash machine, like any device, has its pros and cons. For those who are not convinced to use this type of equipment, we recommend traditional online loan application completion.


Installment loan – where we can borrow the most

Installment loan with bad history in Retrodatabase

Installment loan with bad history in Retrodatabase

An installment loan is an alternative solution for people who, due to a bad credit history at Retrodatabase, face a bank’s refusal and know that the payday loan will not cover their expense, nor will they be able to pay it back within 30 days. Admittedly, Daily Credit, as the only loan company providing liabilities in the installment system, has in its offer the option of paying back within 15 days, also the maximum amount, i.e. 3,000. PLN, but other lenders in this segment give the customer at least a month to return the amount due. This lower limit applies to Mozais (maximum 12 months) and Epicredit (maximum 24 months). Profi Credit offers the longest repayment period, which is also a leader in the highest amount made available by non-banking institutions. You can apply for at least 1,000 PLN, and the most by 25,000 zł. The commitment can be divided into monthly installments regulated for a minimum of half a year, and a maximum of up to 48 months. The loan can be obtained by persons with a monthly income of at least PLN 800, as well as pensioners who receive benefits in the amount of at least PLN 700. The company honors the so-called junk contracts, i.e. a contract for specific work and a mandate contract.

Yes It’s Finance – the longest repayment period

Three years can be repaid with an installment loan of PLN 500 to 10,000. PLN taken out in kotta and MMS Credit (PLN 1 – 3 thousand), Epicredit (PLN 100 – PLN 5 thousand) and Haply Loans (PLN 1.5 – 7.5 thousand) allow to divide the liability for 24 months. A similar option is provided by AutoLopaz, which for several days has offered an alternative to installment loans taken on an income certificate or statement of earnings. Contrary to the name, Lopaz’s brand does not finance the purchase of a car, but allows it to make a liability of up to PLN 15,000. PLN in exchange for a registration document. In this case, a transfer agreement is signed, according to which the lender becomes the owner of 51 percent. vehicle ownership. The company acts as a co-owner of the car until the loan is repaid. During this time the borrower is free to use the car. It’s worse when he starts having problems with timely payment of installments – then he can lose his four wheels.

Ranking loans in installments

Ranking loans in installments

It maintains a monthly installment loan ranking. Check the April installment loans ranking.

Among installment lenders, it is worth highlighting another trend characteristic of micro-loans, i.e. the granting of the first liability with a commission of PLN 0. A free loan of up to PLN 1,500 for 30 days can be found in the Epicredit offer.


Real estate loan insurance: what are the existing guarantees?

Real estate loan insurance protects against “accidents” in life: disability, temporary incapacity for work, loss of a job, death. In the event of a claim, the insurer pays for all or part of the mortgage payment.

Compulsory guarantees

Some warranties are mandatory, others optional. Let’s start with the mandatory ones:

  • First, the death guarantee. How does it work? In the event of the disappearance of one of the insureds, the insurance takes over. And the heirs will not have to repay the mortgage.
  • The second mandatory guarantee is the total and irreversible loss of autonomy insurance (PTIA). This covers the deadlines when the borrower loses all autonomy and needs to be accompanied in his daily life.

Two other guarantees are mandatory, but only in the context of a real estate acquisition of principal residence. These are the guarantees:

  • total permanent disability (IPT). Monthly payments are covered in case of invalidity greater than 66%;
  • total temporary incapacity for work (ITT). The borrower can not fully and temporarily exercise his profession following an illness or an accident.

Optional guarantees

These are the guarantees:

  • Job Loss. As the name suggests, it comes into action in case of job loss. But it must meet certain conditions: unemployment must be linked to an economic redundancy and only employees can benefit. In addition, they must have been on permanent contracts for more than a year.
  • partial permanent disability (PPI). Completes the IPT and applies in case of disability rate between 33% and 66%.

Do you compare home loan insurance? Do not forget the equivalencies of guarantees

Do you compare home loan insurance? Do not forget the equivalencies of guarantees

Since the introduction of the Lagarde law in 2010, borrowers are no longer forced to choose the borrower insurance of their bank. They can choose an “outside” insurance, provided that the guarantees offered are identical to those of the initial offer.

For the record, this type of operation is possible:

  • when negotiating a home loan
  • within one year after signing it (Hamon law, 2014);
  • on each anniversary date of the contract (Annual Termination Act, 2017).