Life writes different scenarios. Sometimes it happens that we have to take cash loans from the bank. The reason can be different. Most often it is an unexpected expense, renovation of a house or apartment, going on vacation or buying home appliances. As many needs as many possibilities. Unfortunately, we don’t always have any savings that can cover the needs. Then financial institutions like banks are offering us help, offering their products – cash loans. Cash loans can be used for any purpose, which is the main advantage of this type of loan. These loans are usually short-term loans, usually granted for a year or two. It is also possible to grant a cash loan for up to eight years. The interest rate on cash loans is quite high, which is associated with easy rules for granting them.
The basic rule when granting cash loans is creditworthiness. When applying for cash loans or any other loans, we must have credit standing. It is based on seemingly trivial assumptions, which even a small change can definitely affect our creditworthiness and hence the refusal to grant us a loan. We calculate creditworthiness on the basis of our income, taking into account the family situation and existing obligations.
Contract of employment
Our creditworthiness also depends on the form of our employment and receiving income. In this respect, retirees are best. They are the best and surest social group that has a stable income without the possibility of losing it. Most banks demand permanent contracts of indefinite duration from their clients, which guarantee them a steady income and thus the credibility of the client. Cash loans are also granted at some banks to persons who are employed under a mandate contract, a specific task contract or a fixed-term contract.
Regardless of the type of employment contract or the amount of our remuneration, everyone who applies for a loan must submit an appropriate application to the bank. Such an application should include the amount of credit we want to receive from the bank, the period for which we want to take a loan, loan repayment dates, information on total debt, including debt from other loans, details of the borrower’s financial standing and proposed forms of loan collateral . Each application received by the bank is analyzed individually. The stages of analysis are: inference, analysis of the applicant’s financial situation, making a credit decision by the bank, signing the contract, disbursement of the loan in the form specified in the contract.
Before you decide on cash loans in any form, you should carefully analyze your financial situation. It should be remembered that all loans are a significant burden on our household budget for several years. To choose the right loan for you, please refer to the offer of various banks. The internet, in which we search for credit comparison websites, makes it very easy for us. Credit comparison websites allow us to quickly and very accurately analyze the proposals of various banks in one place. Credit comparison websites compare, among others, a comparison of the requirements set by banks, the interest rate charged on the loan and all costs that must be added to the total price of the loan. These costs include, among others: interest, bank commissions and insurance. You need to know them carefully so that there is no problem with their height later. That we would not be surprised by the total cost of the loan that will arise at the moment.