3 things to know about personal loans

The personal loan is a particular type of financing with very specific characteristics, which make it one of the most requested credit products by consumers. For this reason, we asked the experts of the SuperMoney online comparator, a platform on which you can find the best loan by comparing the best offers from the main banks, to summarize the main features that define personal loans in 3 points. Let’s go see them.

1. What are personal loans?

1. What are personal loans?

A personal loan is a form of financing through which you can request a sum in cash and, unlike the targeted loans, you can not declare what you need . In fact, they are not used to finance the purchase of a specific asset, for example a car or photovoltaic panels, but simply to have more liquidity.

Another special feature of personal loans is the risk of default . In fact, banks consider them more risky products than others because you are not required to present special guarantees . If in the loan with assignment of the fifth, a fixed part of your paycheck is intended to repay the loan, in the personal loan this possibility is not there. As there is no possibility to mortgage the house as a form of guarantee. Apart from these particularities, they work like all the other types of loans : they must be repaid through installments, which are increased by interest and accessory costs.

2. Who can apply for a personal loan?

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These specific characteristics that make personal loans a separate product in the credit market also influence the categories of people who can apply for them. In fact, just because you don’t have to present special guarantees when you request it, banks want to be 100% sure of your working situation. This is why, the personal loan is generally addressed only to employees , hired under an open -ended contract .

Some banks may also, under special conditions, agree to provide a personal loan to an employee on a fixed-term contract . Under two conditions:

  • the salary must be such as to guarantee a smooth return;
  • the employment contract must not expire before the loan agreement ends.

If, on the other hand, you are a self-employed person , it is very difficult that you will be accepted a personal loan application. Obviously you should present the Unique models that you have compiled in recent years, so that the bank can check the solidity of your income, but it is also possible that you are asked to find someone willing to act as guarantor . A guarantor is a person who legally undertakes to pay the repayment installments for you, in case you have difficulty in doing so. This is an additional form of collateral with which banks try to hedge against the risk of default.

Finally, personal loans are practically off-limits products for those who in the past have been reported as bad payers , whatever their working situation today. A loan with assignment of the fifth is probably a better choice in that case.

3. Higher interest rates

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By now you should have understood this: when it comes to personal loans, banks above all want to cover their shoulders and feel safe. Precisely for this reason, it is a product that has higher interest rates than other types of loans. In this way, the lender can repay the amount lent in less time, thus avoiding the risks associated with insolvency.

Interest is calculated mainly on the basis of the APR , the Annual Global Effective Rate. This is an index that includes, in addition to the sum to be repaid, also the actual interest, the spread (i.e. the amount of pure bank profit), the accessory costs and the premium of any credit insurance. On average, the TAE G of a personal loan stands at around 11-12% .

When you are in front of the APR of a loan, always remember to compare it with the TEGM (Average Global Effective Rate), an index defined quarterly by the Capital Lender that indicates the limit of bank usury .

Credit intermediary with no upfront costs.

The credit broker with no upfront costs helps in the search for a suitable loan and is used very often, especially for large loans. Credit intermediaries as individuals are often in very good contact with various banks and can thus negotiate slightly better conditions for the borrower, which is particularly worthwhile for loans with a very high amount.

Companies, especially corporations, often rely on a credit intermediary, because his expertise makes him better suited for large loans than if these sums were negotiated independently with the bank. However, the use of a credit broker is always optional, especially since it is no longer the case that only people can act as credit brokers.

A credit calculator on the Internet is also, in a way, a credit broker with no upfront costs, since it unites countless banks in its database and compares them in terms of their terms. In this way, the prospective borrower can quickly and securely find out which bank offers the cheapest loans for the desired term and loan amount.

Pay attention to reputable credit intermediaries

Pay attention to reputable credit intermediaries

Reputable credit intermediaries are always characterized by the fact that no preliminary costs are due for the applicant or borrower. In credit intermediaries, there is either no cost at all from the borrower for his service, such as a loan calculator, or a fixed or percentage share of the total loan amount. The credit calculators on the Internet, at least reputable comparators, are usually always neutral, non-binding and, above all, free of charge for the borrower. If a conclusion is reached via the loan calculator, this is financed by a commission from the respective bank.

Since this is usually the same amount, the results are also to be regarded as absolutely neutral and independent. The credit intermediary as a person, on the other hand, has to finance himself and usually charges the borrower an invoice amount – but only if the credit mediation has actually been successful.

Since the use of a credit intermediary is optional, it is worthwhile for most borrowers to use a free credit calculator. Even with a high five-figure sum, these computers can still be used without any problems to compare the market conditions of the individual providers and thus make a lucrative and cost-saving decision.

Credit intermediaries with no upfront costs that also pay off

Credit intermediaries with no upfront costs that also pay off

The credit market has gained a lot of transparency through the Internet, but it is still somewhat opaque, especially for lay people. A credit broker with no upfront costs can therefore help to calculate the individual costs of the providers exactly and highlight possible differences in terms and conditions and repayment methods.

Without this help, consumers would often have to spend hours researching potential banks and their conditions, calculating them independently, and most likely still leaving out a large number of banks. As a result, credit intermediaries with no upfront costs are useful, but only if they actually do not charge upfront costs. Then the borrower can be sure that they have found serious help.

Credit to compensate for overdraft facility

If you need a little bit of money quickly, it is always easy to exhaust the overdraft facility provided in your own checking account. Most of the time, banks provide customers with an overdraft facility in the amount of a monthly salary, quickly and without bureaucracy. But exhausting the overdraft facility is not always a good thing.

Credit to compensate for overdraft facility

Credit to compensate for overdraft facility

The overdraft facility is actually only intended to compensate for a short-term shortage of money. The overdraft facility that is provided by most banks is far too expensive for long borrowing in the amount of interest to be paid. Therefore, it is only worth taking out a credit line for a maximum of three months. If you keep your account overdrawn, you can quickly make money.

Therefore, if you know that the overdrawn money will take longer, you should take out a loan to compensate for the overdraft facility. In such a case, an installment loan is cheaper in terms of the amount of interest to be paid and the resulting installment payments will get you out of debt after a while. This is more difficult if you have availed of an overdraft facility. Because usually you can not pay it back after a while and get stuck in the debt trap.

Where should you take out the loan?

Where should you take out the loan?

The loan to compensate for the overdraft facility can be taken out at any bank or credit institution. Here you should look for the cheapest provider. It is not absolutely necessary for the installment loan to be taken out at the same bank where the current account with the overdraft facility exists.

Before paying the loan amount, which in such a case is usually around USD 2,000 to 4,000.00, the banks and credit institutions require proof of salary and also ask credit checker if there are any other loans, except for the overdraft facility for the Borrowers are reported. Once you have received the loan to settle the overdraft facility, you pay the entire loan amount into your own current account so that the overdraft facility is balanced and the interest payments for this are also stopped. Then you should be careful not to exhaust the overdraft facility again for a long time.

The own contribution required is not always 20% of the loan amount

Good Finance, created by the Polish Financial Supervision Authority, imposes on banks and cooperative savings and credit unions in Poland the obligation to demand from clients who take out mortgages for the purchase of real estate 20 percent own contribution. However, only 10% really is mandatory. Why?

Banks grant mortgage loans to finance the purchase of a residential property or for the construction of a house with a 10% own contribution instead of 20%, but only with additional insurance, blocking of funds on a bank account or with the customer’s consent to increase the loan margin.

Currently, it is completely different

Currently, it is completely different

Before 2014, banks granted mortgage loans in Poland to finance the purchase of real estate without compulsory own contribution. Some of them even offered 110 or 120% loans to their clients. real estate values. So you could receive not only money to finance the act of purchasing an apartment or building a house, but also to have funds for finishing it, renovating or equipping it, as well as all fees related to with purchase.

Since 2014, the S Recommendation created by the Polish Financial Supervision Authority has been implemented. Pursuant to this recommendation, the requirement to have own contribution in the Polish financial sphere. With each subsequent year, the threshold for savings required for the mortgage loan is:

  • 5 percent in 2014,
  • 10 percent in 2015,
  • 15% in 2016,
  • 20 percent in 2017.

Therefore, when granting financing related to housing purposes, banks should now require 20%. own contribution from customers, which means that it is possible to grant a loan with LTV equal to 80%.

Departures from the rule


However, the banks found a gate from the PFSA’s recommendation. Replace, among others, 10 percentage points from the required 20% own contribution to insurance. Option to take out a loan with an LTV equal to 90% is possible, but the borrower must take into account the higher costs of the loan.

A loan with a 10% own contribution financing the purchase of a residential property will be granted, if the customer provides insurance for the missing contribution, he decides to block the funds deposited in a bank or agrees to increase the loan margin, directly affecting the monthly repaid capital and interest installments. All this is intended to compensate for the higher credit risk incurred by the bank

Instant credit with cash payment.

The instant credit with cash payment promises all the convenience of a modern online loan. The borrower does not even have to go to the bank to receive the money. It will be brought to his door in the post. How to do it, more on this in the article.

Instant loan with cash payment – the loan providers

Instant loan with cash payment - the loan providers

The instant credit with cash payment is an online loan offer. It is offered as a small loan. Small loans are very similar to the previous housewife loan. The maximum loan amount, depending on the provider, is limited to around 5,000 USD. Both financial service providers – credit intermediaries and other online providers – can be considered as possible providers. Credit calculators make it easy to find the right provider.

First of all, of course, everyone would like to know whether they are qualified for this loan themselves. The online credit check helps with this. Most offers today are deposited with an online loan application. Completing this application does not require anything. Nevertheless, the application should be filled in truthfully, because it ends with the automatic credit check. If the loan can be approved, the non-binding, preliminary loan approval appears on the screen.

The application process

The application process

If you want to decide on an offer, the actual legally binding application process begins. Together with the provisional loan approval, the credit provider will print out a data package. It contains the pre-filled loan application, a list of supporting documents and the application for the free Post-ID check.

Special note: only a few forget to sign the loan application. On the other hand, the signature to confirm the terms and conditions and Credit Bureau is overlooked.

Together with the complete application documents and the identity card, you can now go to the nearest post office. The counter clerk checks the identity of the applicant. All he has to do is take a look at his identity card. He then either makes a copy of the ID card or manually transfers the data to the examination form. This completes the application process for the borrower. The loan application for the instant loan with cash payment is legally binding and will be sent to the lender by post.

When does the postman ring the doorbell?

When does the postman ring the doorbell?

The mailing of the application takes about one to two working days. It is the bottleneck of all online loans. A maximum of one further working day must be expected for in-house mail distribution at the provider. In most cases, however, it is faster. An instant loan always has “priority” over “normal” loan applications. Approximately one working day must be expected for the processing of the application and the final loan approval.

With an instant loan that is transferred to the current account without cash, the transfer is now made. Depending on the recipient bank, the money can often be expected the next day. A cash payment is unfortunately not possible as quickly. The money order for the instant loan with cash payment is made immediately. But it can take up to a week for the postman to ring the front door.

What is an asset pledge loan?

The loan with a pledge of assets can be an alternative for those who need money in a simple and uncomplicated way. However, this model is not well known, so it is necessary to have a complete understanding.

Like any other loan transaction, it is essential to know rules, rates, values ​​and how this modality works in general since it deals with the pledge of assets, that is, personal objects that often have great sentimental value. Check out the post we prepared on the subject and understand!

Learn more about the pledged loan


An increasingly requested modality, the loan with a pledge of assets is an option for people who wish to place something as a guarantee for obtaining a cash value for the achievement of an objective.

The goods in question may vary, but the most common are jewelry, real estate, and cars. Each of these assets can be left with the bank as a guarantee that payment of the loan will be made within the term established by the financial institution.

This product model was developed so that people get the cash values ​​they want, without having to pay high fees and using assets that they already have as a guarantee so that the grantor of the loan does not leave the loss in the event of default.

Understand how contracting a loan with a pledge of assets works

Understand how contracting a loan with a pledge of assets works

In this modality, the client requests the loan with a pledge with the financial institution, in a process that varies, being simpler and faster in case of jewelry as collateral, eliminating the need for analysis with the SPC and Serasa, requiring only the evaluation of the item.

For cars and real estate, credit analysis needs to be done in the traditional way, through consultations with credit regulatory agencies.

With the pledge of jewelry, the applicant is entitled to a loan at the full value of the item or 85% of the value. For real estate, this percentage is 60%, while for vehicles, 80%.

In this way, the customer has access to the terms placed by the financial institution, which defines the payment term for the requested loan. In the event of default, the asset is auctioned to cover the cost of the loan that was not returned.

In the case of a profit greater than the value of the asset at the auction, that profit margin remains with the owner of the asset.

Will the client undergo an analysis?

It will pass if these pledged assets are real estate or automobiles. In this case, it is necessary to analyze the SPC and Serasa records to verify the customer’s credit. For jewelry, this is waived and the item is evaluated by the financial institution.

Who can do it?

There are some basic restrictions for contracting a loan with a pledge of assets:

  • not be negative in SPC or Serasa (for real estate and cars);
  • be in the age group between 21 and 68 years;
  • achieve a sufficient credit score score.

Where to hire?

This modality can be contracted with the authorized financial institutions, as is the case of Quero Financiar, which offers the specialty of loan with a guarantee of property or vehicle.

It is important to be aware of what is established in the contract, especially the term for the debt to be paid and the way it will be done, in case it is all at once or in installments. Conditions may vary!


Check out the advantages of opting for this loan


The loan with a pledge of assets is very advantageous for those who hire it, which has been increasing the search for this type of product. Jewelry, cars and real estate are common goods and can be easily offered as a guarantee.