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.