Free loans for seniors – up to 78 years old!

Demographic trends in Poland are clear-cut. We are talking about a rapid increase in the number of seniors awaiting us in the coming years. The aging of Polish society is a constant trend that will be practically irreversible.

Therefore, many companies (including loans) must gradually adapt their offer to the expectations and needs of seniors. Such older people use the Internet more and more often and are interested in financing small expenses outside the bank.

With older Good Finance readers in mind, we checked which companies have the best loan offer for them.

Lenders sometimes do not specify the maximum age of the client

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In Good Finance and our loan comparator rankings, we present many offers of quick non-bank loans that are available to older people. Among such a large number of proposals, we decided to choose the four most interesting options (presented in the table below).

Two loans selected by us are characterized by the lack of limitations on the maximum age of the client. This solution is used by Fast Cash and Wong. In the case of Honest Bank, the maximum age of the client is 78 years. The same limit for Across Lender loans is 75 years.

It is worth mentioning that many companies offering fast loans via the Internet set much lower age limits for the oldest applicants. People who are more than 65 years old or 70 years old cannot take advantage of the offers of some loan companies.

Fast internet loans as a good proposition for seniors 

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Detailed information on the above loans:

  1. Fast Cash – loan amount for regular customers from USD 100 to USD 6,000. Repayment period from 1 day to 30 days and from 60 days to 65 days (up to 30 days for new customers). The lender does not require income proof documents. A loan for people at least 18 years old. A loan can be paid out in 15 minutes.
    2. Honest Bank – the loan limit for regular customers is USD 7,500. Repayment period from 1 day to 30 days. The lender does not require income proof documents. As part of the recommendation program, Honest Bank pays USD 30 for acquiring a new borrower. A loan for persons aged 20 – 78 years.
    3. Good Credit – as part of the promotion, the cost of the first one-off loan (even for 60 days) is reduced to USD 10. The amount of the first one-off loan from USD 50 to USD 1,500. An installment loan for new customers (up to USD 10,000) can be repaid in monthly installments (up to 24). The one-time loan limit for regular customers is USD 2,500. The lender does not require income proof documents. A loan for persons from 18 years of age. Regular customers can count on reducing the cost of the loan (up to 45%).
    4. Across Lender – as part of the promotion, the first loan is free. The amount of the first loan from USD 100 to USD 1,500. The maximum amount of the second, third and fourth loans is USD 2,000, USD 2,500 and USD 3,000, respectively. Under the next loans, the client may receive up to USD 4,000. Repayment period from 1 day to 30 days. The lender does not require income proof documents. A loan for persons aged 20 – 75 years. A loan can be paid out in 15 minutes.

Senior can borrow up to 6,000 USD for free and without any formalities …

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All loans presented, except for favorable conditions regarding the customer’s age, are also distinguished by the lack of the obligation to provide income certificates. That is why seniors will not have to, for example, scan documents from the Social Insurance Institution confirming receiving a pension or sending bank account statements.

It should be emphasized that all the analyzed companies offer preferential conditions for the first “moment”. In the case of Good Credit, a loan for new customers (worth 50 USD – 1500 USD) costs only 10 USD (see the table above). Good Finance customers can also benefit from an installment loan of up to USD 10,000.

Three other companies have opted for completely free loans for new clients (including seniors). Minoan customers borrow up to USD 1,500 for free. Honest Bank, on the other hand, will set a twice as high limit for free “instant” (3000 USD). Fast Cash is the unquestioned market leader.

New clients of this company can borrow up to USD 6,000 for free. Of course, much smaller amounts (up to USD 100) are also available. Seniors, like other lender clients, should adjust the amount applied for their financial capabilities.

Death of foreign currency loans

Its purpose was to reduce currency risk for people who earn in cash, took out loans for housing in foreign currencies, mainly in USD. This risk increased significantly during the crisis initiated by the financial crash in the US in September 2008.

Poles at that time forgot the principle that loans in foreign currencies are taken when they are expensive, counting that gold will strengthen against them, as a result of which the debt expressed in the Polish currency will decrease.

The exchange rate then fell to the lowest 

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Instead, up to 200,000 Poles were also swept in this year for loans in the Swiss franc, whose exchange rate then fell to the lowest level in the history of around USD 2 (we provide GFI average rates), and on July 31, 2008, it was even only USD 1.96.

When the crisis broke out, real estate recovered and the zloty began to lose value. On August 9, 2011, the franc cost USD 3.92, so the debt of borrowers doubled in 2008, e.g. from borrowed USD 300,000. USD 600,000 were made. to be returned (minus the amount already repaid).

Currently, the franc exchange rate is about USD 3.40, which means that for each loan borrowed in mid-2008, USD 1.70 must be given away (plus interest and – proportionally – other loan costs). “Franek” borrowers from that period (and those later, borrowers in francs until July 10, 2011) still have more to pay than they borrowed ( some of them much more), and their debt usually exceeds the value of the property.

The situation was similar to the euro. For example, between July 25, 2008, and February 16, 2009, and so in less than half a year, its exchange rate increased by over 50%. (from 3.20 to 4.83 USD). Currently, the euro costs around 4.10-4.15 USD.

What has changed since July 1?

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The last six provisions of the ‘Good Finance on good practices in the management of mortgage-secured credit exposures’ (that is its full name), resulting in the fact that you can almost announce the death of foreign currency loans.

Banks now strictly adhere to the principle “we will give you a loan for an apartment only in the currency in which you earn a living”.

Also, check meticulously whether the borrower can handle the loan agreement if the GFI interest rates rise significantly or the zloty exchange rate changes against the loan currency .

However, every year, banks will have to analyze whether the value of mortgage collateral does not exceed the value of the property (so-called stress tests). The loan can be taken for at least 35 years.

However, most of the recommendations contained in Good Finance have been in force since January 1, as a result of which in the first quarter of this year.

The total value of currency loans decreased to less than 0.5%. the total value of all loans granted. In the last quarter of 2013, there were almost twice as many (0.93%). For example, in the third quarter of 2008 as much as 79.9% all mortgages were also in USD.

And if you earn in foreign currency?

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Housing loans in foreign currencies can still be taken by people living in Poland (or families), who receive the majority of remuneration in euros, British pounds or dollars.

In Poles who went abroad to legally earn some money for an apartment and borrow the rest in a national bank, Good Finance hit the ricochet: they would not get credit.

The barrier is also the fact that currently only few banks offer foreign currency loans. Earners in euros for a loan can go to Good Finance Bank. Whoever has a salary in dollars will get a loan in GBank, and Good Finance, in pounds – he can go to GBank. On the other hand, those who receive a salary in USD will not receive a loan at any Polish bank!

The recommendation will reduce the builders?

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While not denying the expediency of issuing Good Finance, it should be noted that it significantly limits Poles’ access to mortgage loans.

This, in turn, may result in a reduction in the number of flats erected, i.e. a decrease in orders for construction companies. Meanwhile, construction is believed to be the flywheel of the economy. A side effect of the recommendation may also be that many builders can land on the pavement …

Consumer loan: Understand everything here!

Virtually all cash loans are at the same time ‘consumer’ and ‘consumer’. These two terms sound similar but have a completely different meaning. The first of these is part of the naming used by national banks. The term ‘consumer credit’ is more formal. It is specified by a law that regulates the functioning of many financial products (including cash loans).

The consumer is under credit protection

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The rules for the functioning of consumer loans are set out in the Act of May 12, 2011. Pursuant to this legal act, all credit agreements, which:

  • have a value less than or equal to 255 550 dollars
  • are offered by an entrepreneur (i.e. a bank, a loan company or a Cooperative
  • they finance a purpose directly unrelated to the person’s business and professional activity

It should be noted that the aforementioned limit also applies to loans denominated in a foreign currency. The value is converted at the average exchange rate announced by the National Bank of Poland on the last day of the quarter preceding the date of the loan agreement.

The group of consumer loans includes:

The group of consumer loans includes:

  • cash, car, revolving, consolidation and installment loans granted by banks and credit unions
  • loans offered by non-bank institutions (so-called loans)

The consumer status of the contract provides special protection for a person who would like to take out a given loan or loan. The entrepreneur must provide it with an information form. After reading such a document, the client should obtain knowledge about:

  • creditor and intermediary details
  • type of loan
  • time of the loan
  • of the total value of borrowed capital
  • interest rate and conditions for its change
  • the level of the Real Annual Credit Rate (the so-called APRC)
  • the total amount to be paid
  • installment payment rules and deadlines
  • additional products (e.g. insurance policy)
  • interest rates on overdue liabilities
  • the consequences of lack of timely payment
  • required forms of security

Consumer credit protection also covers issues such as:

  • conclusion of the contract (it must contain the information listed in Article 22 of the Act of May 12, 2011)
  • principles of consumer credit advertising (as part of the so-called representative example of advertising such products, they must provide realistic estimates of the cost of credit)
  • prohibition of charging the costs of withdrawal from the contract (it does not apply to interest due for the period of capital use and non-returnable administrative and notary fees to be paid by the lender)
  • the obligation to provide the consumer with a statement of withdrawal from the contract, which is valid for the next 14 days (the entrepreneur may voluntarily extend the deadline)
  • a ban on charging fees for early repayment of consumer credit, which:
  • it has a variable interest rate

or

  • over the next 12 months requires repayment of capital less than three times the average monthly salary in the corporate sector from December last year (currently PLN 12,323.85).

Consumer credit provides free spending

Consumer credit provides free spending

As a supplement, it is also worth presenting a brief description of consumer credit. Such a product is used to finance the current needs of the household (e.g. the purchase of home appliances or a holiday trip).

Consumer credit takes both cash and non-cash forms. The first variant is more popular. Thanks to its application, how will the Consumer Ombudsman help you? The consumer can take the funds himself and use them to buy the selected good or service. In the case of a non-cash consumer loan, the bank transfers Capital wished for the account of the entity selling the product (e.g. new car).