Cheap cash loans in the bank? Are there actually such loans? After all, the vast majority of people looking for loans want to use the cheapest form of financing, and it is well known that cash loans are not at all the cheapest? What should you pay attention to? Is it only at the nominal interest rate on the loan?
Interest rates have been at a very low level for several years now, which encourages many people to use this form of financing.
Most banks try to attract new borrowers with attractive advertisements and attractive promotions, and a great interest in this form of financing creates an excellent opportunity. Cheap cash loans are very often offered for relatively small amounts and for a short loan period.
However, not all loan proposals are a guarantee of a low total cost. What should you look for when looking for a cheap cash loan?
Nominal interest rate is just one of the parameters that determines the cost of the loan. This does not mean that a small interest rate means that it is a cheap cash loan.
The credit costs must also include the commission, additional payments or insurance. All these elements affect the total cost of the loan.
Below is the latest list of cash loans and loans.
Use the online contact application to speed up contact with a consultant from a selected bank. Filling out and sending the form is very quick and does not require you to take a loan from a given bank. However, it can be very helpful. In addition, we will get information about the loan.
Cheap cash loans, or APRC as low as possible
Cheap cash loans are primarily a small total cost of credit or APRC (expressed in percent). It has already been mentioned that low nominal interest rate is not a guarantee of cheap credit. Banks wanting to get the most profits, which is why they charge additional fees, such as:
- commission – usually charged as a certain percentage of the loan amount,
- additional fees, e.g. a loan application fee,
- insurance – significantly increases the cost of credit – it is necessary to read the General Terms and Conditions of Insurance prior to choosing insurance.
Therefore, it is not necessary to check only nominal interest, but comparing cash loans and all costs separately is hardly legible and does not allow to determine whether a cash loan of PLN 28 thousand for 6 years with a nominal interest rate of 5.35% and a commission of PLN 4249 is more expensive than a loan with an interest rate of 8, 99% and commission of PLN 2,500.
Favorable and cheap cash loans are distinguished by low APRC and total loan cost. The lower they are, the cheaper the cash loan will be.
It should also be remembered that the amount of the loan installment should be adjusted accordingly so that it would not be too heavy a burden for home finances. On the other hand, the longer the loan period is, the more expensive the loan will be – we will pay more interest on the loan. The same applies to consolidation, which you can read about in the article Where best to consolidate loans.