Comparison of cash loans is a basic task for all those people who want to choose a bank with a favorable offer.
We are not able to check and compare all cash loans in all banks. Therefore, there is no point wasting energy and time on collecting credit offers from all available banks in our town. Sometimes two or three banks are enough to make a choice. Below is a list of banks in which we can apply for such a loan.
Comparison of cash loans at banks
Comparison of cash loans in terms of costs
When choosing a loan (not only cash) pay attention if we are interested in a cheaper option, at the total cost of the loan or its APY.
What does RRSO mean? This is the Actual Annual Interest Rate. And it’s not the same as the nominal interest rate, nay! it can vary significantly from it. APR covers all additional costs associated with granting the loan by the lender. The APR consist of:
- nominal interest rate,
- bank commission,
- credit insurance,
- fees for additional services,
- payment for processing the loan application.
In addition, the APRC takes into account the value of money over time and the repayment period. And this is the most important parameter to pay attention to when you compare the offer of banks (do not forget to check the total cost of the loan). Why is it worth using in comparing banks with APR? Because each bank calculates it in the same way and makes it possible to compare the offers of several banks.
Remember! When comparing the APRC of loans and total costs, the same loans should be compared, eg cash loans of PLN 26 thousand. PLN 7 for bank A and B.
What kind of interest rate? Fixed or variable interest rates?
The choice (if of course there is such a choice) is fixed or variable interest. Over the short lending period, banks offer cash loans with a fixed interest rate, and with a long lending period it is already a variable interest rate.
The fixed interest rate does not change throughout the loan repayment period and the interest rate changes do not affect the rate of installment.
At variable interest rates, fluctuations in interest rates on the interbank market affect interest rates. If interest rates rise, the loan installment increases, and vice versa. Banks, of course, control changes in interest rates. If the price of money on the market has changed significantly, then the interest rate on the cash loan will change. The borrower then receives a new repayment schedule from the bank.