We checked loan offers both in banks and in loan companies (also known as metabanks), i.e. in places that are most popular among Poles when it comes to the availability of cash for those who lack their own funds. The results are at least surprising
Expensive or more expensive, who really lends us cheaper
Trying to find the answer to the question where money can be borrowed favorably, we assumed that we need PLN 1,000, and we intend to pay the loan back in a month.
When preparing the assumptions for comparison, we expected that due to the short repayment period and the costs we would be forced to bear, we should consider relatively expensive proposals. However, the results of the simulations carried out – in a negative sense – have exceeded our wildest expectations, see for yourself.
A bank loan is cheaper than the proposals made available by financial institutions specializing in granting so-called payday loan. Despite this, they are still very expensive offers. In the institutions compared by TotalMoney.pl, the monthly cost of using borrowed funds ranges from PLN 12 to as much as PLN 320!
Such a loan is not for everyone…
As it turns out, borrowing PLN 1,000 a month can give us far more difficulties than incurring a larger commitment and / or with a longer repayment period. Why? Well, the bank analyzing our financial situation and the ability to properly service the loan taken into account the so-called disposable income, i.e. how much will be left from our salary after deducting all expenses such as rent or other fixed expenses.
What remains must be at least as high as the installment payable. In our case, over 1000 PLN. Another problem we encountered was that the first loan in metabanks can usually be taken in the amount not exceeding PLN 500. Only subsequent loans can be in the amount of PLN 1,000 and more…
The interest rate limit is one and the other costs are another…
It would seem that with historically record low interest rates and a maximum interest rate ceiling of 16%, it is not possible for the Real Annual Interest Rate (APRC) to be three-digit. It is possible. We adopted an interest rate of 14.99% at the largest Polish retail bank.
It is offered to customers who will benefit from the extended option of insurance (at a price of 0.45% of the borrowed amount) and will pay (as new customers who do not have a personal account in PB) a 6% commission. As the name suggests, the costs in the APRC are given on an annual basis. That is why for a “short” loan obligation with standard parameters they are so horrendously high…
Who can help me!
On the other hand, a loan from a metabank in the amount of PLN 1000 and repayment in a month can cost us dearly… Of course, the formalities associated with such a loan are really minimal – most often you just need an identity card and filling out several forms – income statement and basic information on about our material situation. However, a small requirement does not always go hand in hand with the risk borne by the lender.
And as we know, these institutions do not work for charity and have to earn something. It is enough to mention that in the case of the GooDyMoney offer, the amount to be repaid will be close to 1/3 of the amount originally borrowed! The cheapest loan from ING Bank Śląski is granted on definitely better terms, but on an annual basis these costs are over 25%!
So if it is not really justified and the expenditure is absolutely not necessary, it is better to let go of a loan from any financial institution – including a bank, because the costs are really astronomical. Maybe we can get funds from family or loved ones – the likelihood of paying such usury costs is definitely lower, and the money saved should be spent on a joint dinner or a trip outside the city, rather than on servicing bank or para-bank loan costs.