What is the loan commission? It all depends on the specific credit offer. There are proposals where the commission on the loan is 0%, reduced by 50%, but also where the commission is set at 10% and more. There is no other way to check how much the loan commission is, but only to check offers at banks.
Can commission costs be avoided? You certainly know what to look for when comparing banking and non-banking offers (read: Comparison of Loans ). We can think about how to reduce commission costs, and even if it is possible to avoid this cost. If it would be cheaper cash loan, if we did not have to pay commission!
Where you will not pay the commission for the loan
The account limit or credit card does not have to be just an option for holidays. Yes, the nominal interest rate may be at the maximum level, but we will leave the high commission for the possibility of borrowing in the account or on the card. Of course, other fees will come, such as the activation of the limit or the annual fee for using the card, but it is very likely that it will be a cheaper way to raise cash than a traditional loan. As with other loans, here we must also have credit standing, which has an additional effect on the amount of the granted limit.
Example for a credit card for one of the banks: APY: 15.85%. Nominal variable interest rate of 10% per annum. The annual fee for issuing and the possibility of using the card PLN 160. Agreement concluded for a period of 12 months.
Example for a personal account credit limit: APRC 11.52%. Fixed interest rate on an annual basis of 10.00%. Commission for launching the limit of PLN 9.00. Agreement concluded for a period of 12 months.
As can be seen from the examples above, rrso is slightly higher than the nominal interest rate and it is a cheaper solution than a one-year cash loan. We can also raise the existing limit, and then the bank can cancel the commission. In the case of credit cards, the limit can be spread over installments. Then such interest rate will be more favorable than it is in the case of a “regular” credit card.
Commission, interest on credits and loans
The most important thing in the comparison of cash loans is the individual components of the cost of the loan, but the total cost of such a loan. The interest rate is low 5.99%, the commission is 5.50%, is the cash loan better than the loan with a nominal interest rate of 10% and a 3% commission?
The Actual Annual Interest Rate is currently the best indicator for comparing credit offers. This is the total cost of the loan in percent. The smaller it is, the cheaper the loan is. A cash loan of PLN 10,000 for 3 years with an annual turnover of 18.23% is cheaper than the same loan with an RRP of 23.71%.
In loan companies the total cost of the loan is much higher than in banks. Yes, there are loans with 0% rrso, i.e. we borrow and give away the same, but these are one-off cases of promotional loans for new customers. Loans at the level of 80% or more are not uncommon, as are short-term loans with an annual ranging from 1000-2000%.
Sometimes we are forced to use a non-bank loan, because we will not receive a small loan for a short period of time, eg PLN 500 for 3 weeks. In this case, banks offer us account limits and credit cards .