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, prosper.com, 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

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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?

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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

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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.