Private loan what it is and how it works



There are many products on the financial services market that will allow you to easily get extra cash. Private loans are one such product. It is an interesting solution that allows you to borrow money without BIK, complete documents, and test your financial capacity. What is a private loan? Who can I get it from and what are the repayment conditions?

What is a private loan?

What is a private loan?

A private loan is one that is granted by private individuals. Debt can be incurred with family, friends and private investors you don’t know. Private loan can be taken for any amount. The rules for granting this type of financial obligations are set out in the provisions of the Civil Code.

Who can grant a private loan?

Who can grant a private loan?

Most often, Poles turn to their family, friends or other people they know for a private loan. To grant a private loan, you don’t need to run a business related to this aspect of the economy. Under the law, this type of loan may also be granted by private investors, i.e. persons unknown to the borrower. However, the legislator stipulates that social loans cannot be offered by institutions professionally involved in providing financial support – they are already subject to other and more restrictive legal restrictions. Regardless of who you plan to borrow money, it’s worth thinking about signing a loan agreement if the amount you borrow exceeds $ 1,000.

Loans without BIK and KRD

Loans without BIK and KRD

One of the characteristics of a private loan is that it can be taken without BIK, completing documents, or testing your credit history. This is due to the fact that private investors cannot check their clients in any databases. Indeed, private loans can be reached by people in debt and with a bad credit history. However, they must take into account the fact that it is associated with high interest, commissions and fees, as well as the need for additional security of debt, e.g. with real estate. If you are looking for a loan without BIK and KRD, check out the article about payday loans without BIK and KRD.

How much does a private loan cost?

How much does a private loan cost?

When you take out a social loan with your family or friends, you usually don’t incur any additional costs – you give as much as you borrowed. It is different when the debt is incurred by persons who are not more familiar with the borrower. In such cases, one should take into account that interest and other additional fees will also be payable. The amount of repayment and the terms of the loan from a private individual are set individually, but they must comply with the Polish letter of the law. It says that a private loan cannot be more expensive than 100% of the amount borrowed. In order not to be fooled, it is worth even signing a paper contract specifying the terms of borrowing and repayment with a social loan.

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