Family loan programs in loan companies

It would seem that the demand for loan companies’ products will decrease due to the government’s family program. Additional funding from the “Family Loan” project has reduced the demand for online loans only by a few percent.

Together with the expert, C. Dupin, we will look at the changes that have occurred after the introduction of new laws. 

Fewer loans for families?

family loans

The program introduced by the government supports large families and the poorest families. Although there is a change in the financial market in terms of co-financing from loans – families use them less. However, the decline in the popularity of online payday loans is not drastic.

Families no longer decide to borrow for USD 500, 800 or 1000, because sudden expenses can be paid with money from the family support program.

The “Family Loan” program is primarily to support, but also teach Polish families how to save. With financial help, Poles have something to pay for unexpected expenses. However, you can still see that there are still problems with higher-order costs. There may be various situations in our lives that we have no influence on – from a broken car to a flooded apartment or illness of a loved one.

Expenses related to them may exceed many people

family loans

At this point, it’s worth using an online loan. There are many payday loan offers on the financial market that can be tailored to your home budget.

Repayment of the liability should not be difficult, because the installment of the loan can be settled from the money received from the government program, “comments Tymon Zander, expert of C. Auguste Dupin.

A new target group for loan companies

A new target group for loan companies

The target group of the government program is families who, with an additional source of income, will not need another external financing. Therefore, loan companies are beginning to direct their offers to other social groups that are more likely to benefit from such support. Non-bank institutions have new proposals for young people who do not yet have families, and for seniors.

In their offer, they change the age of the borrower, and some do not even set an upper age limit. What’s more, the loan was usually available from the age of 21, and now more and more companies are turning to people who are at least 18 years old.

Non-bank institutions also have student offers or attractive loans for proof without certificates, which makes getting financial support from non-bank institutions easier.

If you want to check the criteria for granting payday loans online, you can use specialist loan comparison websites. You will find them on the C. Dupin website and quickly adapt the offer to your financial possibilities.

Do online loans compete with banks?

The Credit Information Bureau informs that there has been a visible drop in interest in cash loans for a long time. In March this year, Poles applied for cash loans, whose value compared to March 2015 was lower by almost 6 percent. These data come from BIK and are the result of monthly analyzes of the Credit Information Bureau on the amount of bank loan amounts applied for. Keeping these statistics allows you to track the level of interest in cash loans from Poles. 

Despite low-interest rates and thus low-interest cash loans, Poles are increasingly less likely to apply for additional funds in banks. They are increasingly choosing quick non-bank loans. BIK data shows that only in 2015, nearly 3 million Poles benefited from the services of loan companies, whose value according to ZFP estimates amounted to about USD 5 billion. In turn, research from Mock Loan and LiteCredit show that just before Easter, the services of non-bank institutions decided to use 14 percent. 

Change of regulations favorable for online loans

online loans

It can, therefore, be concluded that the growing interest in non-bank loans has its source in the change of regulations. Institution granting quick loans has long fought for a positive image, however, individual cases of dishonesty publicized by the media have effectively deterred many Poles from completing the online loan form.

The change in regulations and regulations regarding the cost of loans meant that Poles saw in this form of borrowing also other advantages such as the speed of processing the application and reducing bureaucracy to a minimum.

Comparing credit and loan offers

Comparing credit and loan offers

Poles’ awareness of economics is also growing. More and more people are paying attention to the total cost of cash loans, and not just the low-interest rates advertised by banks. It often turns out that despite low-interest rates, bank loans ultimately cost the same as quick loans, while the procedures for obtaining them are much more complicated.

High bank commissions mean that customers often prefer to complete a short loan form. Currently, the non-banking market offers consumers various ways to spread the repayment of liabilities – short-term loans are available – payday loans, installment loans and even revolving lines enabling customers to access funds non-stop.

The decrease in interest in cash loans is due to the growing competition from quick loans, which consumers can apply completely online.

Mortgage loan is the operation which allows you to finance a house

Simulate your mortgage for free with Nice bank

Simulate your mortgage for free with Nice bank

The mortgage loan or mortgage loan is the operation which allows you to finance a house, an apartment or a building of investment. It also allows you to buy land and have your new home built.

Whether you are a professional or an individual, the mortgage loan engages your future! Whether it is a first good or not, the stakes remain high. Investments are substantial and numerous stakeholders: notary, seller, real estate agent, entrepreneur, etc.

The mortgage is a crucial step in choosing a property, which is why a professional and personalized approach is essential.

Our experience, in close collaboration with our banking partners, ensures you the best solution whatever your profile.

Who can apply for a mortgage?

Who can apply for a mortgage?

You can apply for a mortgage if you:

  • Reside in Belgium;
  • Are at least 18 years old;
  • Receive regular income;
  • Are not on file with the Capital Lender;
  • For a project to purchase a property located in Belgium or if you already have a property in Belgium without mortgage registration.

The advantages of our Nice bank mortgage

The advantages of our Nice bank mortgage

  • Acquire real estate;
  • Choice on the amount to borrow;
  • Monthly payment according to your repayment capacity;
  • Several choices of formulas and borrowing possibilities;
  • No bad surprise thanks to our advice.
  • Benefit from an advantageous rate;
  • Choose the amount and duration of the mortgage;
  • No booking fees.  

Because, at Nice bank, we are convinced that everyone deserves a chance, our highly qualified and specialized mortgage advisers can find the solution that suits your needs. In addition, our service as a broker is completely free for you.

More about the mortgage

What is a mortgage?

What is a mortgage?

A mortgage or mortgage loan is a loan that allows you to borrow money to finance real estate or renovations.

How do I apply for a mortgage?

  1. Calculate your credit via our simulator;
  2. Submit your credit application online;
  3. Nice bank will contact you as soon as possible to finalize your request;
  4. Sign your loan contract;
  5. Finalize the administrative procedures with the notary;
  6. Enjoy your property.

How to apply for a mortgage?

  1. Apply for credit.
  2. One of our advisers will analyze with you the financial solution that meets your needs.
  3. After reflection, make your decision.

How much does a mortgage cost?

The cost of your mortgage depends on how much you want to borrow and how long you want to pay it off.

What is the Global Annual Effective Rate?

The APR (Annual Effective Annual Rate) is a percentage which represents the total cost of your loan per year, all costs included.

Do I need to take out mortgage insurance?

Life insurance is desired by banks, it is the guarantee of the total repayment of the credit in the event of death. Your loved ones will be protected and will keep the property. Otherwise, if the income cannot suffice for monthly reimbursement, the property will be sold.

Can I cancel a mortgage?

It is possible for you to terminate your credit before signing the deeds, this, within the deadlines provided by law and mentioned in the general conditions.

What will happen if I don’t pay back on time?

What will happen if I don

After three unpaid monthly payments, you will be reported to the Capital Lender. You risk not being able to take out a loan any more because banks or lending institutions are obliged to inquire with it before granting consumer credit.

Other questions to think about. Do you have equity? What is your repayment capacity? Does your home have fire insurance? What is your situation ? What is your project ? What is the total amount of the reimbursement? Have you thought about notary fees? Are you entitled to a tax benefit? Is the interest rate a fixed rate or a variable rate? What is the balance owed?

And now, it’s time to get started in real estate projects!

Cons: Debt brake equals investment brake

The debt brake lives up to its name: it slows down Germany. In times of cheap credit, we must not miss important investments in infrastructure, education and social justice. Future generations will thank us, comments Mersha Hollith from the German Federation of Trade Unions.

Anyone building a home takes out a loan. If you have a good business idea, you borrow money to invest. The loan makes company foundations as well as later profits and growth possible. Nobody would think of banning private individuals or entrepreneurs from the loan agreement with the bank and thus preventing future-oriented investments. Only politics is tightening itself in Germany itself: First, the debt rule of the Maastricht treaties was enforced in the EU. Then the German debt brake came into the Basic Law. The European fiscal pact followed a little later. But that’s not all: The German government’s new budgetary goal, which has been raised to an ideal, is called “Black Zero”.The aim is no longer to keep new debt within limits, but to generate a budget surplus.

Debt reduction at the expense of investments

debt loans

For example, an active fiscal policy that compensates for economic fluctuations and ensures stable economic growth has been effectively overridden. Deleveraging becomes a priority of fiscal policy across business cycles. Public investment in private was cut back. Result: dilapidated infrastructure, impassable bridges, underpriced living space and much more.

In order to achieve the savings target, public spending was cut, many public services fell victim to the red pencil or were privatized. Fees were raised and user charges such as truck and car tolls were introduced. In short: Germany switched from investment to economy mode with the debt brake. The debt brake became an investment brake.

 

Germany has an investment backlog in both the public and private sectors

debt loans

In order to reach the OECD average, Germany has to invest around 90 billion dollars annually. This corresponds to three percent of economic output in 2013. Public investment in private has become a victim of austerity policies, including municipal investments. According to estimates by the Astro Lending municipal panel, the total municipal investment backlog has now reached 118 billion dollars. Union and SPD have agreed in their coalition agreement that they want to reach the OECD average. However, this goal remains a long way off if you continue to stick to austerity measures, the debt brake and “black zero” and neglect investments. The problem becomes even bigger because infrastructure that is not maintained costs more in the end.

Germany today has a probably unique opportunity to remedy its weakness in investment, because the state generates large surpluses and hardly has to pay interest on loans. Politicians should seize this opportunity and act decisively. Roads and railways in need of renovation, but also schools, day-care centers and district centers could be modernized. This would create the basis for growth, jobs, competitiveness, prosperity and an intact community of tomorrow. This is reasonable, inexpensive and fair to today’s and future generations.

Contact Mersha Hollith from the German Trade Union Confederation considers the debt brake to be a dangerous illusion. Instead of ensuring more security and stability, it prevents important investments – especially in the country’s social infrastructure. The “black zero”

Missed the mark

debt loans

The German government only wants to use the good budgetary situation to pay off debts in order not to burden future generations with high debts. But it is not only debts that burden future generations. Today too little private and public investment threatens tomorrow’s prosperity and employment.

If we want to avoid the march to the fee-based state, if we want to leave future generations with not only less debt, but also an intact community, we must have a broad debate today about the meaningfulness of investments and savings efforts. Neither is an end in itself. Both goals must be in an appropriate relationship to each other in the interest of current and future generations. So far, important investments have gotten under the wheel.Now we have to take advantage of the economic tailwind and switch from economy mode to investment mode again – despite the debt brake and the “black zero”.

Complaints and complaints about cash loans

However, the Financial Ombudsman has doubts about reliability in the way financial institutions count the number of complaints. It is for this that the Polish Financial Supervision Authority will be asked for help. The PFSA’s task will be to check how banks and insurance companies count the number of complaints sent by unsatisfied customers.

In August 2020, the institution of the Insurance Ombudsman was transformed into the Institution of the Financial Ombudsman. With the change, this institution gained a new scope of responsibilities – previously it only took care of the interests of clients of insurance companies, currently, it also deals with clients of banks and loan companies.

Consumers complain about bank loans

Consumers complain about bank loans

Of the 125 complaints about financial institutions, as many as 94 related to banking products, and only 31 related to products offered by loan companies. Customers mainly focused on fees related to cash loans offered by banks.

These allegations primarily concerned the lack of reliable information regarding, inter alia, total loan amount, high fees charged for individual services. Consumers also drew attention to the complicated and incomprehensible content of documents.

What’s more, customers believed that banks apply unfair rates of return for insurance in the event of early repayment. According to consumers, the amounts reimbursed in this respect were extremely low compared to the fees charged for insurance at the time the loan agreement was concluded.

Complaints at loan companies and banks

Complaints at loan companies and banks

In the report, the Financial Ombudsman published data on complaints submitted by clients during the reporting period, i.e. between October 11, 2020, and December 31, 2020. They show that in this period 5300 complaints were received by loan companies, of which as many as 73.5 percents. concerned two quick loan companies.

Province Loan took the infamous first place in terms of accepted complaints – 2259 complaints, which constituted 42.5 percent. loans, while 1649 (31%) were received by City Loan. South Loan is the record holder among banks in terms of accepted claims. The bank has accepted as many as 42,474 complaints, over 35,000 were received by Mobile Bank, and only 28,000 by ABC.

Temporary financial problems

Temporary financial problems

The report also reads that banks are reluctant to enter into settlements with clients who have temporary financial problems, as well as those whose financial situation has deteriorated. As the Financial Ombudsman informs, the phenomenon of misselling in the loan industry is also noticeable.

This phenomenon consists in activities leading to the sale of products to customers, the use of which does not coincide with their needs. According to the Financial Ombudsman, some companies, therefore, offer products that are not adapted to the financial capabilities of their clients. In order to clarify this situation, the Financial Ombudsman started cooperation with UOKIK.

Cash loan under private banking

Private banking in Poland has no rigid framework (read the number of liquid assets) that separates the average client from the one that requires a more professional and comprehensive approach.

Individual banks set the entrance border to this zone themselves

business loan

For example, Cheap bank addresses the offer to people whose assets exceed the level of 500,000. USD or USD 2 million, in the case of Wealth Management (or the equivalent of this amount in another currency). At PBB Bank, the amount of assets starts from 600,000. 

Private banking is a personalized and comprehensive service for a wealthy customer, primarily in the field of finance. But not only, because as part of the services provided and long-term cooperation, there are also issues related to customer support in investing, e.g. in real estate or philanthropic activities. A customer using private banking has a dedicated specialist at his disposal.

Cash loan for key customers

Cash loan

Among the extensive range of investment products, private banking customers can use standard tools to manage their capital, i.e. personal accounts, credit cards or cash loans. However, due to the individual approach, this cash loan is granted on much more flexible terms and is tailored to investment plans and customer consumption goals depending on the period they fall into (it can be short, medium or long term).

What’s more, such a loan is able to meet very specific and non-standard requirements. What can a wealthy customer count on when applying for a loan at his bank? The loan amount usually starts from 150,000. USD (for comparison, this is how much a standard customer can borrow).

The maximum amounts available are USD 1-2 million

payday loan

The road to obtaining financing is considerably simplified, and when assessing creditworthiness, it is mainly the number of assets (e.g. real estate) that counts. Both the loan amount, as well as the interest or commission rates, are negotiable.

Loan companies in social media

Regardless of the industry, each organization wants to be noticed by consumers. Loan companies are not lagging behind in this topic, which is why we can find so many of them on Facebook. 

Internet lending companies set up social media profiles to be closer to their clients

Internet lending companies set up social media profiles to be closer to their clients

People who decide to make instant pay first look for information and opinions about the institution on the Internet. We are used to the presence of companies on social media.

A Facebook profile with visible activity and a group of followers inspires confidence in us.

Payday loans online for young people

Most companies offering payday loans in 15 minutes operate mainly on the Internet. Contrary to the belief that the services of non-bank institutions are mostly used by older people, these companies mainly reach young, educated people who need to borrow small amounts for a short period of time.

Loan companies try to reach their recipients through all possible channels, among others in order to establish better communication with them. Each of us is more willing to use the services of a company we know well.

The company that informs us about what interesting it has on offer, what competitions, quizzes or valuable content it has prepared for us becomes closer to us.

Valuable content of loan companies

Valuable content of loan companies

Loan companies put a variety of information on their profiles. Some of them focus on educating their clients, which created two interesting characters for the transmission of valuable content.

From time to time, fan pages give advice on how to save money, how to build a positive credit history and the like. An interesting idea was also shown by Wonga, which provides educational content, directing recipients to its platform kapitalni.org.

Loans with humor

Another way to consolidate brand consumers is to approach them with humor, passing on the content not necessarily related to finance and the economic world. Vivus has chosen this path, among other things, which does not differ financially from the thematic point of view, however, the way it presents its content is quite funny.

Best Credit publishes all sorts of curiosities, and Talk Credit, directing messages mainly to fair sex writing about fashion, interior design, holidays, food and how to manage finances wisely.

Quick reactions

business loan

Customers often use fan pages to get quick answers to their bothering questions, as well as to inform other users about the wrong approach to the customer or not considering the complaint. It would seem, then, that on the loan companies’ fan pages you can find many unflattering opinions, but to the pleasant surprise, it did not happen. Browsing the profiles of the largest loan companies, you can come across any customer inquiries written in the comments, to which companies respond directly or ask for contact with the service office.

Nevertheless, the lack of negative entries is information for us that, despite widespread conviction about the dishonest activity of non-bank institutions, it is not true.

So let’s follow the fan page of companies whose services we sometimes use. It is worth being up to date with current loan promotions and taking part in competitions, especially when there are attractive prizes to be won.

Without debts on a new way of life – a loan for a wedding

For such an important event as the wedding, the calculation must be very accurate. Initially, only in the sphere of imagination, after setting the deadline is already a real project, requiring precision in calculating costs and saving skills. Hence, guest lists established in advance and placed in each invitation for prior confirmation of your presence.

An endless list of wedding expenses

An endless list of wedding expenses

In some cases, a young couple prepares a list of gifts they would like to get from guests. A practical approach to the topic is a type of prevention. It avoids surprises when suddenly losses outweigh profits.

There are several ways to avoid this situation. One of them is credit, but not all couples can afford such a start. The alternative is to borrow money from your family, but it’s also not an option for everyone.

For events such as weddings, planned expenses do not have to plunge the young couple financially. Young people receive a refund in the form of money that guests offer wedding gifts. In many cases, the profit from “envelopes” often covers the cost of the wedding. Often, young spouses can even count on a surplus that allows them to enter a new life in the black.

“When planning a loan for a larger expense, it is worth considering when we can pay it back. If the repayment period is short, payday is a great solution. Choosing it should always be guided by reason and check offers beforehand using one of the online comparison websites, ”comments Tymon Zastrzeżyński, Conlaí’s expert.

Quick cash injection for a wedding

Quick cash injection for a wedding

When preparing a big day, it is worth remembering this possibility. You have to take advantage of the fact that this is one of the few situations where quick reimbursement is almost certain. The bride and groom do not have to worry about the need to gradually pay interest-bearing amounts.

On the contrary, they can take advantage of favorable circumstances and smoothly regulate their financial situation. The flexibility to pay back payday loans is the main factor determining their popularity among borrowers. Young couples also have the option of taking out a loan with their spouse, but unfortunately, the debts incurred by the partner can be severe.

The use of a non-bank institution is in this situation a very advantageous solution. Minimized formalities will not cause future spouses additional difficulties in organizing a big day. In this way, newlyweds can start a new way of life in independence and without debts.