Three Steps to Avoid a Debt Crisis

The sustainability of the debt of some high-risk countries has been the subject of wide debate. However, the burden of public debt is a growing problem worldwide.

In advanced countries, public debt stands at levels that have not been recorded since World War II, although it has decreased more recently. Public debt in emerging market countries is at levels last seen during the debt crisis of the 1980s. Furthermore, 40% of low-income countries —that is, 24 of 60 countries— are at high risk of a critical situation caused by indebtedness, that is, the inability to service public debt, which could considerably alter economic activity and employment. Therefore, it is not surprising that, as the country that chairs the G-20, Japan has considered debt sustainability as a priority item on the G-20 agenda.

High levels of unprecedented debt are not necessarily a problem when real interest rates are very low, as is the case today in many advanced economies. However, high levels of debt can leave governments much more vulnerable to the tightening of global financial conditions and rising interest rate costs. This could lead to market corrections, strong exchange rate movements and further weakening of capital flows.


Not all debt is bad

debt loans

In fact, loans can unlock vital resources for investment in infrastructure, health, education, and other public goods. Investment in productive capacity, when done correctly, generates an increase in income that can offset the cost of debt service. In addition, part of the increase in debt, especially in advanced economies, helped prop up growth after the global financial crisis and prevent a worse outcome.

Problems arise when the debt is already high and the resources from new loans are not spent wisely (due to corruption, weak institutions or other reasons), or when a country is affected by natural disasters or economic shocks, such as the sudden reversal of capital flows that affects your ability to repay debt. Currently, some emerging market countries face this latest challenge.

But it is usually low-income countries that face the most difficult debt challenges and are also often less prepared to respond to these challenges.

Many of these countries have a great need to generate additional resources for development, and end up increasingly turning to external financing through sovereign bond issues, loans from new official lenders, and credit from foreign commercial creditors. Sovereign bonds and commercial loans tend to have higher interest rates and shorter maturities, which increases the cost of debt service and complicates the task of managing it.

Although diversification of financing sources has advantages, it also creates new challenges for managing debt and, if necessary, addressing its restructuring, since we do not have established mechanisms for the coordination of creditors that include new creditors.


What can lenders and borrowers do?

borrow money

Three policy priorities can help change the situation.

Redouble efforts to ensure that sovereign debt is financially sustainable

Redouble efforts to ensure that sovereign debt is financially sustainable

Borrowers should carefully define their public spending and fiscal deficit plans to keep public debt on a sustainable path. They should also carefully consider the potential return on their projects and their ability to repay through increased tax revenue before taking on new debt. Lenders should evaluate the impact of new loans on the borrower’s debt position before making new loans. This will protect both the lender and the borrower from entering into agreements that will cause them financial difficulties in the future.


Ensure that all countries declare comprehensive and transparent information on public debt

In many developing countries, there is scope to significantly strengthen the institutions that are responsible for recording, supervising and declaring debt. For example, one third of low-income countries do not report information on guarantees provided by the public sector, and less than one in ten countries report information on public company debt. Debtors have scope to allow more complete disclosure of the terms and conditions of their loans. Greater transparency in relation to public debt liabilities can help to avoid the accumulation of large “hidden” liabilities that end up turning into explicit government debt.


Promote collaboration among official creditors

Ensure that all countries declare comprehensive and transparent information on public debt

in order to prepare for debt restructuring cases involving non-traditional lenders. Given the high level of debt maintained by new creditors, we must think about what we can do to make coordination between official creditors effective, as it is often essential for the resolution of debt crises.

As for the IMF, together with our institutional partners, we are working closely with member countries to strengthen their ability to record and manage debt, as well as to ensure their transparency. We are strengthening our methodologies to assess debt sustainability and training officials in member countries to use them. In addition, we are actively working with new lenders, in particular to strengthen their ability to participate in multilateral debt restructuring, should the need arise. .

Which bank will borrow the cheapest?

Christmas and New Year’s time is a challenge for our household budget. We often borrow money from banks to cope with it. Unfortunately, in the holiday rush, you can make a hasty decision. We checked which loan offer would be the most advantageous.

Christmas fever fully: we buy gifts for loved ones, we plan Christmas Eve meetings and New Year’s Eve trips. Our readers, Karolina and Marek, also do this, asking us to find the best cash loan offer. They want to finance December expenses.

Which bank will borrow the cheapest?

Which bank will borrow the cheapest?

Special period for them – they finally moved into their dream home. Unfortunately, this has significantly depleted their reserves on their account, which is why they want to borrow USD 15,000 from the bank to cope with Christmas and New Year’s challenges (and not only).

They want to pay back the commitment for 4 years. They asked us to find the best offer. However, they set us one very important condition: they want a loan with a fixed interest rate.

We asked the banks to prepare such a calculation. In total, we compared 14 proposals. Our calculations have shown that the total loan costs can range from USD 18,020 to as much as USD 20,332.

Good Finance Consumer Bank, Fine Bank, and Good Credit are institutions that have prepared both for customers who already use the services of a given bank and for customers who do not use the best offers. Customers’ attachment to banks resulted in minor differences in individual offers, but in both cases, Good Finance Consumer Bank turned out to be unrivaled. Accurate calculations below.

The cheapest offer for a customer

The cheapest offer for a customer

Who does not use the services of a given bank was prepared by Good Finance Consumer Bank, in which the total amount to be paid was USD 18,020 and the monthly installment was USD 375.41. All thanks to the interest rate of 3.99 percent. and 9.80% commission

Fine Bank prepared an offer more expensive by USD 1,005. Here, the total cost of the loan reached USD 19,025, and the monthly installment was USD 396.36. An interest rate of 7.95% was responsible for such costs. and a commission of 7.70 percent

The latest offer worth recommending was presented by Good Credit. Here, the difference in the total cost of credit between this and the best offer reached as much as USD 1,261. The total cost of the loan was USD 19,281 and the monthly installment was USD 401.68. This result was affected by an interest rate of 6 percent. and a 12.30 percent commission

Out of 7 calculations for external customers that banks sent us, only at Good Finance Consumer Bank the total amount to be paid slightly exceeded USD 18,000. In other institutions, the costs exceeded 19,000 USD, and in the least favorable offer reached even 20,000 USD. What’s more, the difference in costs between the most expensive and the cheapest offer was as much as USD 2,312.

Good Finance Consumer Bank has also prepared an unrivaled offer for its customers. The total amount to be paid at this bank was USD 18,379, and the monthly installment was USD 382.90. All thanks to an interest rate of 4.99 percent. and 9.80% commission

This time, Good Credit came second, which prepared an offer more expensive by USD 528. The total amount to be paid at this bank was USD 18,907, and the monthly installment was USD 393.89. All thanks to an interest rate of 5 percent. and commissions 12.30%

Fine Bank prepared the last offer worth recommending


The total cost of the loan was USD 19,025, and the monthly installment was USD 396.36. This result was affected by an interest rate of 7.95 percent. and 7.70 percent commission

On the 7 calculations for internal customers, which banks sent us, only in Good Finance Consumer Bank and Good Credit the total amount to be paid did not exceed USD 19,000. In other institutions, the costs exceeded this amount, and in the least advantageous offer even USD 20,000. What’s more, the difference in costs between the most expensive and the cheapest offer reached as much as USD 1,953.

Loans to companies without certification and via the Internet

Several banks prepared express loan offers for entrepreneurs, granted without Credit Checker and US certificates, without financial documents, and often without even visiting a branch. Where can a company get such a quick loan? What amount can he count on? And what conditions must he meet to receive the necessary cash injection?

Over half of the loans online

Over half of the loans online

At the end of 2014, revolving loans sold online accounted for more than half (51.4%) of total sales of this type of loan. In December 2014 alone, it was 60% – this was the result he recently boasted in a press release from Good Finance Bank. The institution offers one of the most modern and entrepreneur-friendly solutions for granting loans – the Tachometer platform. Over two years, over 160,000 benefited from it. business owners who took out working capital loans for an amount exceeding USD 1.4 billion.

How it’s working? All you have to do is fill out the online loan application and send pdf statements from all company accounts in other banks for the last 6 months. Customer creditworthiness verification is entirely online. It is based, among others on the analysis of turnover on his bank account, as well as information on the borrower from various types of debtors’ databases. Wait for the decision for about 3 minutes. This form of obtaining a loan can also be used by entrepreneurs who have not been the bank’s clients until now.

You can choose from: working capital installment loan up to 250,000 USD, current account limit up to 250,000 USD and a credit card with a limit of up to 50 thousand. USD or installment working capital loan and current account limit up to USD 375 thousand USD with de minimis guarantee granted by Bank Good Credit. The entrepreneur grants the decision to grant a loan via the Internet. Starting a loan, however, requires a written contract, for this, it is best to go to the branch, funds on the account should appear on the same day.

After two years of operation of the platform, I can say that customers prefer this way of using the services we offer. They do not have to provide the bank with certificates or waste time on visits to offices to obtain them – comments Dominik Fajbusiewicz, a member of the board of Good Finance Bank.

A nod to existing customers


Good Finance Bank is not the only bank in which the company will get an online loan without a Credit Checker, US or financial documents. E-Money also has such a proposal. Online loans up to USD 100,000 USD can be obtained fully electronically in just 15 minutes.

However, this option is available only to E-Money customers, because the credit decision is made on the basis of previous cooperation with the bank. New customers can count on no more than 10,000 zł. The customer can choose the form of credit: overdraft, credit card or loan repaid in installments.

You can also apply for a loan online at E-cash Bank thanks to the E-cash Direct Business Credit platform. It allows free assistance in choosing a product suitable for the needs of the company, allows you to assess your creditworthiness, and also make an online application.

These options are available to all companies

Those who are already clients of E-cash Bank and have access to E-cash BusinessOnLine can also conclude a contract via the Internet, of course, if they receive a positive credit decision. As for formalities, documents, and collateral, they depend on the type and amount of the loan.

But also in this area, the bank is trying to meet customers. For example, loan security documents, which must be signed and delivered to the bank in paper form, are also made available through E-cash business online, so they can be printed and sent at the bank’s expense.

Is a foreign currency loan a good idea right now? – Jarndyce family

Until a few years ago, banks often persuaded clients for loans in foreign currency. However, at present, the process has been somewhat slowed down and credit policy is tightened.

Wary of financing the purchase of an apartment


Poles are wary of financing the purchase of an apartment, house, car or starting their own business with a loan in a foreign currency. Is it really best to take a loan in the currency in which we earn income or a loan in USD or franc is still a good solution?

Loans in foreign currencies may still be cheaper than loans in USD. The difference results from the way banks determine their interest rate. Both in the case of USD and foreign currency loans, it consists of two components: the reference interest rate and the margin added to it.

For USD loans, the reference interest rate is usually GFIC (i.e. the interest rate at which Polish banks borrow money among themselves). The interest rate on USD loans may also be determined on the basis of the bank’s internal base rates or the rates set by the Monetary Policy Council.

Interest rates on foreign currency loans are set similarly. However, bank base rates for currencies do not depend on the situation in Poland, but on the conditions prevailing in other markets.

The base rates are usually the interest rates at which banks borrow money in a specific currency on international markets, i.e. GFIC for dollars and francs and Good Finance for the euro. Banks add their margin to these base rates.

Customers who are considering a foreign currency loan should know when such a solution will be most beneficial for them and what currency of the loan would be appropriate for such a commitment.

We now know that Swiss francs are not as stable as we thought a few years ago. Perhaps a good solution would be to take out a loan in USD, where the installation will be much lower compared to the same loan in USD.

The Good Finance rate is very low (April 20, 2015, Good Finance 3M was 0.0020 percentage points), therefore the loan interest rate will be lower than in the case of loans in USD, bearing the higher GFIC rate (April 20, 2015. GFIC 3M was 1 , 6500 percentage points). Savings on installments can be up to several hundred USD, depending on the total loan amount.

When considering a foreign currency loan, you definitely need to consider the exchange rate risk. When deciding on a foreign currency loan, we never know how high the monthly installment will be. If – due to the turmoil in the financial market – the Polish currency is weakened, then the exchange rate will increase.

Increase the installment amount


This, in turn, will increase the installment amount. Of course, the reverse scenario may also occur, but over the years of paying back the loan, it can change many times.

Foreign currency loans also have a detrimental effect on their low availability – they are granted by a smaller number of banks, persons interested in them must also demonstrate significantly higher creditworthiness.

Customers with income in USD are treated by banks as persons with higher risk, therefore they require a much higher capacity.

Banks are currently tightening the conditions associated with granting loans in foreign currency and in order to be able to take such a loan, you must demonstrate very high creditworthiness, which is unattainable for many customers.

A USD loan seems to be the safest solution. There is no exchange rate risk, the installments are almost constant every month (it can also decrease if you decide on decreasing installments) and such loans are also more easily available.

Higher interest rate


The downside is only the higher interest rate, however, the aforementioned pros can offset this. Most credit specialists and advisers assume that it is better to take out a loan in a foreign currency, but only if the borrower is getting his salary in that currency.

Then the risk of a change in the currency exchange rate does not apply to him and he can pay back the low-interest liability. The statement that you should take a loan in the currency of your earnings is the most current.

Is it worth having a credit card

A credit card allows you to take a quick loan. However, when choosing a card, you must take into account the additional fees and costs of unpaid debt. You always have to take into account the fee for using the card itself and additional fees related to e.g. its insurance. The credit card can be chosen from almost all banks in Poland. The advantage of having a bank account to get a credit card is that you can even have several cards.

This advantage also comes with some dangers


With more credit, it is easier to succumb to shopping temptations and you can imperceptibly fall into the debt loop. Especially since banks do not require cardholders to repay their entire debt. So you can only pay the minimum amount you pay, usually three to five percent, and split the rest into installments.

The interest rate on cards, although more and more attractive, is generally much higher than the interest rate on a loan, e.g. in ROR or even a cash loan. This means that the monthly repayment of the card in the minimum amount is intended only for debt service and the capital part remains almost intact. Purchases made in this way can be extremely expensive.

When deciding on a credit card, you should consider whether it will be used only for cashless payments and the debt will be repaid in full after the expiry of the interest-free period, or whether it will be used to take out a loan for a longer period, and the debt will be repaid in installments.

The most important parameters


Are the annual cost of using the card and the length of the interest period. In the second one, the card’s interest rate will also be of great importance. You may also want to, for example, collect cash from your credit card during holiday trips. Then, when choosing a card, it’s worth checking the amount of commission charged by the bank for taking money from an ATM – and these can reach up to several dozen dollars!

To sum up – it is definitely worth having a credit card – at least due to the fact that its proper handling will allow us to build a good credit history! However, it is important that reasonable use of the card will allow us to use interest-free credit for our payments even for a period of almost two months!

Loans for monthly installments online – check how to take

If you need money, you care about time and you don’t want or can’t go to a bank or a loan company, online loans can be a great solution! Compare offers from different companies and check which one is right for you.

Loans granted via the Internet are available primarily in non-bank companies’ offers. It is these institutions that grant so-called payday loans or loans as evidence. They are characterized primarily by a minimum of formalities and easy accessibility. Remember! A loan is not the same as a loan.

Loans for monthly installments over the internet – what’s that?

Loans for monthly installments over the internet - what

The terms ‘loan’ and ‘credit’ are often confused with each other and considered synonymous. This is a mistake because a loan is a broader concept than credit. First of all, loans can only be granted by banks – no private person or company that does not perform so-called banking activities, he can’t give you a loan.

Both banks, natural persons and non-bank companies can grant loans.

The difference between a loan and a loan is, among others such that the loan agreement must be in writing and the loan agreement may be concluded even orally.

In addition, banks usually follow many procedures – they check Credit Checker databases, verify credit history and assess creditworthiness. Loans (for monthly installments, via the Internet or stationary), granted by loan companies, are characterized by a much-simplified procedure.

Loan for monthly installments – online or stationary? How to get a loan?

Loan for monthly installments - online or stationary? How to get a loan?

You can take out a loan from a non-bank company on a stationary basis, at the company’s headquarters or online. How to take a loan online (monthly installments)? Check it out:

  • fill in the online application – you will have to complete a dozen (sometimes a little more) fields and provide information such as your name, PESEL, address (residence or domicile), bank account number, telephone number, possibly statement of income or employment;
  • verify your identity – most often this is done with the help of verification transfer for a symbolic zloty or a penny. The idea is for the lender to be sure that the bank account details match those in the application;
  • wait for the verification of the application – it takes a short time and often only takes a few minutes.

If the application is successful, the money can be in your account instantly.

Loan offers and lender requirements may vary from company to company. In one institution you can get a loan online only on proof and without checking the Credit Checker databases, in the other, you will need to present a certificate of income or employment. However, the procedure is considerably simplified compared to loans.

What you should know about payday loans online

What you should know about payday loans online

  • Online loans are often called payday loans because you can receive money in a short while and because you take out loans for a relatively short time – usually from a month to 3 years.
  • Most often you can borrow from USD 100 to even USD 15,000. These amounts are lower than in the case of bank loans, but they often help to meet current needs.
  • If you do not have a bank account or it has been seized by a bailiff, it may not be possible to take out a loan for monthly installments online. In this case, go to the company’s headquarters and submit an application on the spot.

Online loan (monthly installments) – what could be the consequences of late repayment?

Online loans are a convenient way to quickly inject cash. Remember, however, that, like any other commitment, you have to pay back your monthly installment loan online.

When you take out a loan, you will probably get an installment payment schedule that you will have to follow. You should also be informed about the consequences of exceeding the deadlines. Carefully check all the conditions and think about whether you will be able to settle the commitment within the prescribed period. Otherwise, you may have to pay additional fees, such as:

  • interest for late payment of installments;
  • costs related to enforcing claims (e.g. sending reminders);
  • costs related to debt collection, court or bailiff proceedings (debt collection procedures are triggered when, after receiving letter reminders, the liability is still unpaid).

Therefore, in the case of loans for monthly installments over the internet, timeliness is extremely important.

How do you look for online loan offers?

If you do not want to waste time tediously browsing the pages with loan offers, use the payday loan comparison tool on the Good Finance portal. All you have to do is enter your loan criteria, e.g. amount and time, and the system will compare the parameters of many offers and present the results clearly.

Cash loan without certificates – where to get a loan without online income certificates?

Cash loans enjoy unflagging popularity among borrowers because the funds obtained from them can be used for any purpose. What’s more, their parameters are very diverse, depending on which bank you use, which is why everyone can find an offer tailored to their needs. Recently, the bank also introduced the possibility of using a cash loan without certificates. What is this about?

Only a few years ago, a cash loan without income certificates could only be found in the offer of non-banking companies. Currently, banks offer this solution to their clients. What characterizes such a cash loan and what conditions must be met to be able to apply for it? Check if you will get a loan without certificates. And see how the loan calculator will help you.

Cash loan without certificates – what is it characterized by?

Cash loan without certificates - what is it characterized by?

A cash loan without certificates is granted to people who receive a steady income. However, he does not have to come from an employment contract. This can be, for example, a survivor’s pension, a mandate contract or work. Most banks that provide this type of loan have a positive attitude towards almost every source of income. However, it is worth checking in advance what requirements it sets for its customers.

A cash loan without income and employment certificates is most often granted on a declaration – the borrower must indicate in the credit application the title and amount of income he receives. So how is it different from a regular bank loan? A cash loan without certificates means that you will not be required to prove the values ​​given with a certificate from your employer.

All you need is a bank statement, which will confirm the impact of your salary. Thanks to this, the entire loan granting procedure is maximally simplified and comfortable for the borrower.

Cash loan without certificates – can I apply for it online?


Can I get a cash loan without online certification? By all means, although only a few banks offer such a possibility. So before you make a decision about choosing a specific offer, check its detailed conditions. You will receive a cash loan without Internet income certificates.

Where else can you submit an online cash loan application without certificates? An interesting proposition in this respect is the Mini Ratka offered by Good Finance. You must know that cash loans without online certification are rare. It’s much easier to receive them when you decide to visit a bank branch.

How much money can I take out without presenting an income certificate?

There is no clear answer to this question because the maximum amount of such a loan depends on the bank’s policy. You can easily find a 5000 loan without certificates, or even twice as high, i.e. a loan of up to 10 thousand without certificates. However, you have to head a bit with higher amounts.

Nevertheless, some banks offer their clients a loan of up to 20 thousand without certificates. This amount will certainly prove sufficient to cover larger current needs. However, if you are looking for a 50,000 loan without any certification, there may be a problem.

Banks are reluctant to grant loans for such high amounts when they are exposed to risk. However, it is even possible to find a loan of 100,000 without certificates. However, this does not mean that you will not have to meet any conditions.

Do banks grant loans without certificates?

Do banks grant loans without certificates?

Cash loans without earnings certificates were formerly the domain of loan companies offering so-called payday loans. However, times have changed, and banking institutions are more accommodating to their clients.

So now you can find a loan without bank certification. You will also not need any collateral for the loan.

In which bank to take a cash loan without certificates?

Wondering at which bank a cash loan without certificates? The matter is not so simple. You need to analyze a lot of offers. However, we decided to help you with this by creating a special statement. From it, you will find out where to take a cash loan without certificates.

Cash loan without certificates at Fine Bank

To receive a cash loan without certificates at Fine Bank, all you need is your ID card, which is why it is also referred to as a credit card. To do this, you need to go to a branch or Fine Bank partner outlet. The maximum loan amount is up to USD 200,000. USD. Noteworthy is the relatively low-interest rate.

In the case of a loan of USD 15,000 USD. is 4.5%. If the credit decision is positive, the funds will be withdrawn on the same day.

A loan in an online community? This pays off!

The idea of ​​a social loan on the Internet was born in Great Britain, wherein 2005 the website was created. Subsequent pages appeared quickly in other countries. Currently, most loans of this type are granted in the USA, where only the largest website,, is used by over one million people.

In Poland, the first social loan brokers appeared 4 years ago. And slowly, slowly settle on the Polish financial market. They gain the trust of Poles thanks to the transparent system and simple rules. They are constantly increasing interest in the form of the number of registered users – at present, it is about 420,000 users for all platforms. Currently on the market are.

How does a social loan work?

How does a social loan work?

It’s a simple idea, and it would seem as old as the world – people borrow money from each other. However, the loan market has been dominated by banks that either limits their services to selected ones or make them pay dearly.

They often combine both. High commission, additional insurance, sometimes the need to have an account. Added to this are expensive reminders in the event of arrears (often charged in an absurd manner). There are also financial institutions that offer so-called payday loans – but no economically educated person will rather reach for them.

What should people do who do not want to take loans on usury conditions – which parabanks often offer or do not want or cannot go to the bank? In such a situation, loan services seem to be a good solution.

By registering on one of the portals we have to verify our data


There are several ways to do this and they often differ depending on the website. We will definitely need to have your ID card and a small amount at hand, which will affect our subaccount on the given website. Sometimes another identity document such as a driving license or passport will also be useful. You can also verify your phone number or place of residence – this will increase our credibility and the chance to get a loan, especially at the very beginning of the service. But it often involves an additional fee.

After successfully creating an account, we can both become a lender and a borrower. In the systems of these websites, there are some safeguards that protect the interests of those willing to invest.

First, how much we can borrow from the community depends on our rating – a rating that is equivalent to credit history in traditional banking. If we are new to the website, we must limit ourselves to small amounts provided for in the regulations. Only when we repay our first loan can we expect more in the future. Alternatively, when we lend to others. What’s more, as the rating improves, we can count on lower interest rates on subsequent loans. Generally, the interest rate ranges from 5% to 25% per annum.

Is such investing safe and profitable?

Is such investing safe and profitable?

The introduction states that social loan services are not only an alternative to bank loans but also deposits. Thanks to them, by investing our money – that is by lending to others – we can count on a greater profit than on a deposit.

Our money in deposits, although often do not even defend against inflation, is safe due to the guarantees of the Bank Guarantee Fund. What does the security of our money look like in the case of social loans? First of all, it is never the case that we lend the whole thing to one person.

Usually, there are several lenders behind one loan, so the risk that the entire sum we decide to invest in this way will be lost is reduced. Secondly, user verification systems in intermediary services screen out unreliable people who are in default. We decide who we lend and we can only choose the most trusted ones according to the rating. Among other things, that’s why people try to pay off their loans quickly – they know that if they don’t, they may be blacklisted and there will be no more funds.

Thirdly, in the event of problems with the repayment of our debtor, we can order recovery via the portal, or claim our rights ourselves – we have signed contracts. It is important that loan services, by caring for their reputation, help us recover our money. They even cover fees related to lawsuits and bailiff enforcement. Fourth – the results. In coconut alone, the average repayment rate is 92.6%, and so far USD 77.6 million has been borrowed with its help. The loan repayment rate for the entire sector is 97%.

Trust is the basis

An investment in social loans is not risk-free. However, it is smaller compared to the stock market or other alternative forms of saving. Each site warns against the possibility of non-repayment or slipping. They have full information facilities and tutorials to help those who want to borrow and invest.

In addition, the potential profit that we can achieve is much larger than in the case of deposits or savings accounts. The whole system is based on simple trust, but as you can see it works quite well and not only in Poland. If we trust big men, why not trust other people like us?

How to withdraw from a loan or credit agreement?

The decision to take a loan should be well thought out. It happens, however, that after signing the loan agreement, the borrower recognizes, for various reasons, that he does not need, does not want or cannot make a financial commitment.

It remains for him to exercise his statutory right to withdraw from the loan or credit agreement. Under what conditions can this be done?

Can I withdraw from the loan agreement?


In principle, all banks in Poland, as well as non-bank companies dealing in granting loans or credits, must comply with the provisions on consumer credit. This type of credit is defined as credit granted to the consumer against payment, for an amount not exceeding USD 255 550, for purposes not related to his business activity.

The Consumer Credit Act imposes on banks and loan companies the obligation to accept the consumer’s application regarding a withdrawal from the loan agreement or withdrawal from the loan agreement.

Therefore, the question of whether it is possible to withdraw from the loan agreement and whether it is possible to cancel the loan without providing comprehensive explanations and incurring costs should be answered in the affirmative.

Regardless of whether it is a cash loan or mortgage loan, or even a consolidation loan, it is possible to resign from the loan, but only within 14 days of signing the relevant consumer loan agreement.

Until 2017, it was not possible to withdraw from the mortgage contract on the terms applicable to consumer loans, but at present, in accordance with the Mortgage Credit Act of July 22, 2017, it is possible within 14 days of signing the loan contract.

The liability in which the withdrawal from the loan agreement relates to must also be within the limit specified for consumer credit. The loan agreement is terminated when the relevant application is submitted. It is also possible to opt-out of a loan application before it is considered.

How to withdraw from a loan agreement?

How to withdraw from a loan agreement?

In practice, withdrawing from a loan agreement involves submitting an appropriate application to the bank or loan company. A statement of withdrawal from the loan agreement is needed. It is usually a one-page document in which the name and number of the loan agreement, borrower’s personal details, and address details should be provided.

Finally, the customer indicates the bank account number to which the bank should send an amount equal to the costs incurred by him in relation to the concluded contract. A distinction should be made between terminating a loan agreement and terminating a loan agreement from its withdrawal.

Termination occurs as a result of an agreement of the parties and it can be made at any time during the repayment period if the parties agree. However, the termination of the contract differs from the withdrawal in that it concerns the future and consists of unilateral termination, which is possible at any time, but the borrower may be exposed to serious costs.

Withdrawal from the loan agreement – the legal basis


Borrowers and borrowers are guaranteed the right to withdraw from the loan agreement by the Consumer Credit Act of 12 May 2011.

It indicates all matters that relate to withdrawal from the contract, to the effects of such action, etc. In chapter 5 of the said Act, in art. 53 section 1, the legislator gives consumers the right to withdraw from a consumer loan agreement without giving a reason within 14 days of its conclusion.

At the same time, the creditor or credit intermediary is obliged to conclude a credit agreement and provide the consumer with an appropriate model of withdrawal from it on a durable medium.

The formula should include the name and surname or name and place of residence or the registered office of the creditor or lender. The bank or lender must inform the customer that he has the right to withdraw from the contract and attach a model withdrawal.

At what time can you withdraw from the loan agreement?

At what time can you withdraw from the loan agreement?

Many bank and loan company customers are wondering when they can opt-out of the loan. We already know that they have 14 days to do it, but how do you count this period? This time is counted from the date of signature on the document of the loan or loan agreement.

Even if the customer submits a withdrawal from the loan agreement or sends it on the 14th day after signing the agreement, the creditor must include it. If the customer decides to send a statement of withdrawal from the loan agreement, it is best to use a registered letter. Then the consumer will have confirmation of the withdrawal with a clear date and all required recipient data.

However, if the consumer makes a withdrawal from the loan agreement at a branch of the bank or the loan company, it is best to ask for confirmation in writing.

Failure to provide a model statement of withdrawal from a consumer credit agreement by a bank or loan company means that the consumer may withdraw from the contract within 14 days, but calculated from the date of delivery of such a model to him.