Loans can be beneficial if the borrower knows how to use them safely. Knowledge is the basis for informed and reasonable borrowing and it is worth reaching for it before taking out a loan. The following glossary of the responsible borrower lists the most important issues that will affect the future borrower: Five business registers whose field of activity is collecting data on the degree and type of indebtedness of natural persons and companies.
The total cost of the loan
This is all the charges that the borrower must pay to take out and repay the loan. Most often, interest and commission for granting are included, but you can also come across an administrative, preparation and extension fee. More about costs: Fees, commissions, interest – all about loan costs.
Asmall amount of internet loan with a short repayment period at the same time, usually 30 days. Free loan – a loan promotion often used to grant payday loans and is most often due to new customers of the company. According to it, the borrower does not bear any costs of the loan if he repays the loan on time. Debtor – a debtor is any person or company that has a financial obligation and must pay it back (e.g. a loan or credit). According to the law, this does not have to be a statute of limitations.
Instantor – a web application that allows you to quickly verify your identity in the loan process. The application requires entering your login and password for electronic banking (does not save or store this data). Loan consolidation – taking one loan when the borrower already has several other loans. The amount of the new loan will be used to cover other liabilities, and the borrower can repay the new liability in low monthly installments. Prompt – a reminder sent to the borrower about the loan repayment deadline. It can take different forms: email, SMS, letter or telephone.
Verification in the debtors’ databases
Checking the client of the loan company in the TLV, SMALL and KRK databases in order to determine his financial standing and ability to pay the liability Financial credibility – in other words, it is the borrower’s diligence in paying off his financial obligations and meeting them on time. Creditworthiness – this is the ability to repay the liability within the prescribed period. This ability includes the borrower’s professional situation, the amount of his income and the amount of monthly obligations and fixed expenses.