A bank loan can be a good option if you need money for something specific and are confident that you will be able to repay the loan on time. Find out what you should know about bank loans!
What is a bank loan? Definition of the term
A bank loan is a certain amount of money that a bank grants to a customer for a certain period of time. The customer gives back the loan with interest. Bank credit is one of the ways of financing businesses. It is also one of the ways of consumption. Banks grant loans based on an analysis of the customer’s creditworthiness. Creditworthiness is nothing more than the ability to repay the loan with interest. Banks take into account many factors, such as age, employment, income, expenses, credit history.
Types of bank loans in Poland
A loan is a loan that a bank gives to a customer to finance a specific purpose. Banks offer many types of loans that can be used for any purpose. Here are some examples of the types of loans that can be found in Polish banks.
- Cash loan – this is the most popular type of loan in Poland. It is a loan that can be used for any purpose, such as shopping, a trip, renovation or other expenses. A cash loan is granted for a period of 6 to 96 months.
- Mortgage loan – is a loan that can be used for a real estate purpose, such as the purchase of an apartment, house or plot of land. A mortgage loan is granted for a period of 10 to 30 years.
- Car loan – is a loan that can be used to purchase a car. Car loan is granted for a period of 12 to 84 months.
- Student loan – is a loan that can be used to finance studies. Student loan is granted for a period of 6 to 48 months.
- Consolidation loan – is a loan that can be used to pay off other loans. A consolidation loan is granted for a period of 12 to 120 months.
Bank loan vs loan
Do you know what a bank loan vs. a loan is? A bank loan is nothing more than money that a bank gives to a customer for a specific purpose. This can be money for the purchase of an apartment, for a car or for any other purpose. A bank loan is interest-bearing, meaning that you will have to give back more money than you borrowed. A loan is also money given to a customer, but for a short period of time, such as one, two or three months. A loan also carries interest, but the interest rate is usually higher than a bank loan. In summary, a bank loan is money transferred for a longer period of time, for larger amounts and at a lower interest rate. A loan is money transferred for a short period of time, for smaller amounts and with a higher interest rate.
What is the process of getting a bank loan?
The process of getting a bank loan is relatively simple. All you have to do is go to the bank where you want to get a loan and ask them to fill out a form. However, this is only the first step. The bank will look at our credit history, and require certain documents from us. Only after receiving and verifying them will the bank be able to make a final decision on granting the loan.
