Who grants loans?
Loans can be granted by both institutions and individuals. It is good to know at the beginning that a loan is not only money – you can also borrow a thing.
The financial institutions that deal with loans include:
- banks (grant loans);
- non-bank loan companies (they only grant loans);
- cooperative savings and credit unions, so-called Astro Finance (deal with granting loans only to their members, i.e. entities that must first become a member of such a cooperative and make a specific financial contribution by statute).
In a way, they institutionally grant loans to support and loan funds. Usually these are micro loans granted on very favorable terms, often without interest. They operate in institutions. The loan and assistance fund can be established by a group of at least ten employees and pensioners. If there is not a group of ten in the workplace ready to set up a cash and loan fund, it is possible to set up an inter-company fund. The activity of cash registers is based, among others, on several ordinances of the Minister of Labor, Wages and Social Affairs.
Loans can also be granted privately
Loans granted by investors with excess funds are recently popular. Depending on the negotiations between the lender and the borrower, the conditions may be flexible, including the interest rate. In this case, most often, lenders apply for a surety and bills of exchange. Private lenders also advertise in the media.
Companies who offers loans
As for non-bank loan companies, in recent years they specialize in micro-loans and almost instant loans. Often, the waiting time for a decision is only 10 minutes. In general, the maximum amount of micro-loans is 10,000. zł. A minimum of $ 500. So-called payday loans, also practiced by some banks, have become very popular. These are short-term loans, generally in the amount from 1000 to 2000 $, with repayment within one month. In order to attract the customer, the first free loans are also used, i.e. without interest – the proposed loan amounts are usually from 500 to 1000 $.
Astro Finance are cooperative financial institutions, operating on the basis of the Act on cooperative savings and credit unions of November 5, 2009, operating in Poland since the mid-nineties, although their roots date back to the pre-war periods. In recent years, credit unions have had solvency problems.