A loan taken out at a bank or other financial institution is a relatively easy and quick way to obtain additional money necessary to implement plans or finance unexpected expenses. Financing entities simplify and speed up procedures, so that the loan can be granted very quickly, without leaving home and visiting the facility. However, the challenge is to choose the best offer. What to look for when comparing them?
Compare the loan offers before you decide
One of the most important comparison criteria should be the cost of the loan. However, not everyone is aware of the fact that it consists not only of the interest rate, which is most often heard in ads, and whose maximum level is very strictly defined by law. We will often pay much more as part of non-interest commissions, preparation fees, handling fees, etc. Fortunately for borrowers, entities that grant loans must include them all as part of the so-called APRC, i.e. the actual annual interest rate. This is an indicator that makes it easier to compare offers.
– However, it should be noted that this indicator works best when comparing loans with a similar repayment period. A completely different value will be obtained for a loan granted for several years, and a different one for a loan of several months, which the APRC will usually be much higher.
Regardless of whether we need to borrow only a few thousand zlotys, e.g. for car repairs, or are looking for an offer that will comprehensively equip an apartment or our own study or studio, in each case we should check at least a few offers and compare their costs.
What else to consider when taking out a loan?
Cost is not the only criterion that we should look at when choosing the best offer. Depending on our financial condition, plans and capabilities, we may also consider various types of additional parameters. One of them is e.g. the option of early repayment of the loan and the amount of fees associated with it.
– If, for example, we take out a loan because of a sudden, large expense that cannot wait, but we also expect a large cash flow in the coming time, the possibility of early repayment can allow us to significantly reduce costs. – It happens, however, that it is necessary to pay a certain commission. That is why it is worth checking the repayment terms and choosing the best offer for us.
Another noteworthy criterion is the option of credit holidays, i.e. suspension of part or all installments.
It is a very convenient solution that will allow us to avoid losing financial liquidity in situations where, for example, when the loan is being repaid another large expenditure occurs.
– Credit holidays extend the term of the loan, but they allow you to avoid arrears, which, if extended in time, can affect not only the temporary financial situation, but also our credit history and assessment in BIK, which will be taken into account if in the future we will apply for another financing.