Cash loans are one of the most interesting and very heavily regulated household debt categories.
What should you know about the terms of signing a consumer loan agreement?
APRC is the duty of banks. Providing the Real Annual Interest Rate is a legal standard that allows you to compare all offers, but it is worth emphasizing on uniform conditions, which, unfortunately, are difficult to obtain. Some banks suggest, for example, giving up commissions for comprehensive insurance or cost-related bundled transactions. APRC is also changing when optimizing equal or decreasing installments. The APRC is also different when you compare two cash loans for different periods. The APRC is usually provided on an annual basis.
Banks usually do not require a separate account to withdraw money from a loan.
A surety is also rarely required if positive creditworthiness is demonstrated. The most popular form of contract security has for years been the signing of a blank promissory note or the use of real estate. It is worth remembering that only an indebted property can be included in the collateral for the cash loan agreement. Banks approach loans for smaller and larger amounts a little differently. With lower debt, the presentation of a salary certificate sometimes falls off.
The borrower is able to specifically compare cash loan offers, ask for credit holidays, and even go through interest rate negotiations, but only after the creditworthiness assessment stage. Borrower protection naturally extends to the consumer ombudsman. In the event of abusive (not permitted) clauses in the cash loan agreement, it is very easy to get out of it. You also don’t pay for early repayment, and it’s good practice to significantly reduce your total debt costs.
You do not have to have your spouse’s consent for a cash loan, although there are some exceptions, but rather for large amounts. Also, try not to use your full creditworthiness, especially with the risk of rising interest rates.