When applying for a loan (eg mortgage or cash), we must take into account that the bank will demand documents from us, based on which it will calculate our creditworthiness. Until recently, you could have avoided these requirements and instead of submitting the relevant documents and confirmations, opt for a loan on a statement of earnings. The recommendations of the Polish Financial Supervision Authority, however, made banks have to tighten their lending policies and limit access to this type of liability.
Under the traditional procedure, the basis for calculating the creditworthiness of the person applying for a loan is documents prepared by the employer: a certificate of employment and a certificate of income. To take out a loan on a statement about earnings, the information provided by the applicant is sufficient (of course, such data is easy to verify, and providing false information is punishable, therefore when applying for this type of loan is not worth dyeing).
Loan for selected?
Paradoxically, an easier procedure does not mean that a loan for a statement of earnings is granted more often than those that require additional formal conditions. What’s more, financial institutions deciding to grant a loan to a statement of income must face higher risk, which is why they protect themselves against situations in which the borrower will cease to pay his obligations or will have delays.
The most common restrictions in this regard concern:
- making this type of loan available only to the bank’s regular customers, those who have a positive credit history (or making the loan available to persons who are not regular bank clients on worse terms)
- the possibility of taking a loan only by persons working in the public sector, whose income is regulated by regulations (eg doctors or teachers)
- higher interest rate than in the case of traditional credit that assumes fulfillment of additional formal requirements
- age – more restrictive time periods in which an applicant can apply for a loan
- the amount of the loan – the KNF’s restrictions have meant that the majority of banks offering a loan for a statement of income borrows no more than PLN 20,000
- the loan is usually only granted as a free amount (any purpose), so there is no possibility to consolidate payday loans
If you are considering taking this type of loan, think about whether it will really be the best for you. Carefully analyze the products offered by the banks. First, study the conditions for taking such a loan in a bank you are a regular customer (if the bank has it in its offer). Remember that sometimes providing more documents and meeting the formal conditions of traditional credit allows you to get better credit conditions.