Borrowing a larger sum of money from any institution or person is usually not a simple task. Those who are trying to get a mortgage are perfectly aware of this. However, you do not always need cash to buy or build a house or flat. At the same time, not everyone has enough income to get the right amount of cash loan. In such a situation a certain way out of trouble can be a loan under collateral.
A mortgage loan in the bank
Applying for a large loan in the bank, amounting to several hundred thousand zlotys, is associated with many restrictions. They are designed to protect the lender from borrowing money to a person who will not pay it back. And the higher the amount, the more naturally the bank will check the applicant’s finances more deeply. Important factors determining the granting of a loan are not only the amount of income earned each month, but also expenses. The issue of the form of employment is no less important. Preferred are people with an indefinite contract of employment.
Meeting the above conditions is difficult for many people, and often impossible. The more so that the bank scrupulously checks our credit history. In this way, the chances of a dream loan may be reduced to zero, unless we are the owner of a property. This gives us the option of taking a mortgage loan. This financial product is a combination of a mortgage and a cash loan. As in the case of the former, the collateral here is a mortgage burden for the bank. In turn, just like with a cash loan, the awarded money can be used for any purpose.
The real estate is a sufficient security for the bank, that such a pledge gives the borrower many amenities. The repayment period can be extended. The interest rate in this case is also lower than with cash loans, and sometimes twice. Also, do not forget that the amount granted is not small here and it can oscillate around 80 percent of the property value.
However, not everything is so rosy. Security on the property, though, somewhat loosens the criteria for assessing creditworthiness, but does not completely exempt from checking its validity. Again you will need to present a certificate of income, an account statement, and a form of employment. Our credit history will also be checked at BIK. Thus, despite being a property owner, it may happen that the bank did not grant us a loan.
Non-bank loans as collateral
In this case, the only alternative will be to use the offer of one of many non-bank companies. The situation here is so much better that the property is not one acceptable security. Equally good is the car that we can enter into the mortgage register. It is important, however, that the applicant is the sole owner of the vehicle. It is also worth reminding that a similar form of security is sometimes also used in banks, for example for certain types of car loans.
Asking for a Metabank with a loan request, we have so much comfort that we do not have to worry about long-term checking of our creditworthiness. Procedures are minimized in this matter. You do not need to submit your employment or income statements. The loan institution does not scan us at BIK. As a result, an unemployed car owner or property with debts and not the best credit past will also get such a loan.
The devil, however, is in the details. A loan for pledge in Metabank will not usually be granted for such a long period as in a bank, and this affects the amount of the monthly installment. To make matters worse, the APRC, ie the total cost of co-financing may reach up to 40 percent.
If we get the initial consent in the bank for a mortgage loan or we decide to use one of the forms of a loan secured by a loan company, do not forget to present documents confirming the ownership. In the case of real estate, it may be a copy from the land and mortgage register, an extract from the land register or a notary deed showing purchase or receipt of a donation. In the case of a bank, it will also often be necessary to prepare a property valuation by a real estate appraiser. It can be a person sent by a lender or a qualified expert whom we can find ourselves.
In summary, it should be acknowledged that the most advantageous form of loans against pledge is offered by banks. However, in comparison with non-bank companies, the conditions for granting them are still very high and it is necessary to take advantage of Metabank proposals in the near-fence moments. However, by borrowing such a loan, in particular people who do not have the best financial situation, they must precisely calculate the amount of funding they can afford, so that inadvertently it is not easy to lose the pledged thing.