Getting a loan gets easier. Every second Pole over 18 years of age repays a liability to a banking institution. What conditions must be met to get a loan? It all depends on the purpose for which we want to spend the received cash and the internal arrangements of the bank.
Is getting a loan difficult?
According to the data collected by the Credit Information Bureau, over 15.2 million adult Poles have a bank loan. Having active loans slightly prevails in the group of women. The reason for this may be that they are increasingly taking over responsibility for the household budget. When an unexpected expenditure occurs suddenly, they decide to ask for financial help from banking institutions. The total amount of active loans amounts to PLN 584.2 billion. Most borrowers have no problems paying back their obligations. Only 8% of consumers are late paying back the amount due to the lender over 90 days.
Obtaining a loan means that you must meet strict conditions. They aim to eliminate the risk of late repayment. Therefore, it should not surprise us that among them the largest group (23%) are people aged 35-44. It should be noted that each consumer has employment and a permanent source of income. The average commitment of an individual customer within this age range is PLN 67,825.
Which credit products do we usually apply for?
As for the most frequently chosen financial product by Poles, it is consumer credit. Receipt of this type of loan was recorded as many as 13.19 million times. We can therefore conclude that it requires the least formalities and sets more lenient criteria for consumers. For example, housing loans are at the last place in terms of quantity (2.29 million products). However, their value accounts for over 70% of the total bank loans taken, i.e. PLN 408.21 billion. So you can see the correlation that the higher the amount of the commitment, the lender places more stringent conditions for customers. Other solutions that Poles like to use are credit cards (6.08 million products) and credit lines (6.04 million products).
Why is it so difficult to get a mortgage?
As you know, when applying for a home loan, it is necessary to submit the largest number of documents. This is due to the weight of the commitment made. This is also evidenced by the data collected by BIK. According to them, the average borrower has PLN 177,570 of debt under a loan taken for an investment in real estate. Let’s compare this sum with the others: consumer loan PLN 11,520, credit cards PLN 2,210 and credit lines PLN 1,730. It should not surprise us why the procedure for granting this type of financial product is more complex, requires patience and dedication of time. We repay the mortgage for many years, which is why the bank must be sure that we are credible and reliable payers.
What conditions must be met to get a loan for an apartment?
Currently, the interest rate on loans is 4.33%, which makes these products cheap and easily available. This resulted in a sharp increase in the number of liabilities incurred. During the first 7 months of this year, their popularity increased by about 17% compared to the previous year. Therefore, experts predict changes that will be aimed at introducing more stringent criteria for receiving financial support in the form of a housing loan. When applying for a mortgage, the basic criterion will be the age of the potential borrower. It is not enough to be 18 years old. The most favorable are people up to 35 years of age who have a stable life and permanent employment. Older applicants may have trouble getting a positive decision.
Because it is most important for the bank that we have financial liquidity throughout the entire loan period. This will be synonymous with the ability to work. We should be at most 75 years old when our commitment is over. The factors just mentioned are elements that influence the assessment of our creditworthiness. It is worth knowing that not only our earnings, but also our personal characteristics, such as age, education, seniority, position, number of dependents or owned properties will be taken into account. They form a qualitative analysis, which is part of the creditworthiness assessment system.
What else will the bank pay attention to when considering the loan application?
Each financial institution, regardless of the product we choose, pays attention to the amount of earnings and the form of employment. They are part of a quantitative analysis when assessing creditworthiness. However, in the case of non-bank loans, the situation is simpler because companies accept income from employment contracts, pensions, pensions, mandate contracts, specific work contracts, their own business or agricultural activities. If the application is directed to a banking institution, we will not receive such freedom.
The bank will ask us not only about earnings, but also expenses. We will be asked to provide the number of dependents, the amount of regular expenses associated with our daily lives and monthly commitments to other institutions. In the eyes of banks, people with an employment contract for an indefinite period or for the duration of a bank loan are most favorable. When it comes to earnings obtained on the basis of other contracts, e.g. our own business or contract, we may be required to meet additional conditions or provide other documents confirming employment stability or the minimum period of our company’s activity on the market, etc.
Credit at PKO – what requirements?
Our creditworthiness is an important factor affecting the acceptance or rejection of applications. In this case, the required scoring is based on the length of the loan period and the amount of the finally calculated monthly installment. It is worth noting that the duration of the loan should not be longer than 35 years. In addition, you will need a minimum own contribution (20%).
One should not forget that creditworthiness is also influenced by having the right credit history. We should not be surprised if the bank rejects our application due to negative entries in BIK or debtors’ databases. Regardless of whether the information relates to installments or other obligations to financial institutions, the Tax Office or the Social Insurance Institution, it will have a significant impact on the lender’s decision. However, we should remember that the lack of any credit history also has negative consequences, because the bank is unable to determine whether we are reliable payers or not. However, there are ways to improve our credit history. What?
The most important is timely repayment of all liabilities incurred. The lack of entries regarding lateness indicates our credibility. One way to improve it can be to get a loan online if you repay it on time. Unlike payday loans, installment liabilities granted by a non-bank institution will be recorded in the databases checked by lenders. The credit history also includes other forms of liabilities, such as:
- paying household appliances and electronics in installments,
- credit card,
- credit line.
It’s worth taking care of your credit history because it is the most important deciding factor. If it is negative, we can forget about the bank loan, while good can help us get a higher loan amount or better conditions.