Honorable loan companies awards

The Consumer Loan interchangeably referred to as the Customer’s loan is a prestigious award that is allocated by consumers themselves. The effect of granting this award is the annual selection of the most popular products and brands in their categories.

Surveys are conducted both by phone and online

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For us consumers, this means that a given company enjoys widespread trust in the market, while for companies it is information from customers which products are the most popular in a given group.

It is worth noting that anyone can take part in the Consumer Loan plebiscite because the surveys are conducted both by phone and online. In 2015 customers appreciated the non-banking market, Filarum can boast of the 2015 Gold Consumer Loan, while silver went to Vivus.

Loan Magazine’s responsible lender

Widgets visible on loan companies

When browsing the website of the loan institution, pay attention to the widgets of the companies and organizations with which it works. Usually, this type of information is posted at the bottom of the home page. We can often find widgets there, including Daniel, the Conference of Financial Entrepreneurs (KPF) in Poland and the Association of Loan Companies (ZFP).

Each of these widgets means something completely different because the cooperation of a given company takes place in a completely different segment.

The Widget of the Conference of Financial Entrepreneurs in Poland (KPF) is information for us that a given loan company cares for the development of the industry and adheres to the KPF code, and also develops and cares about the education of the entire market.

In turn, the symbol ZFP (Association of Loan Companies) means that the institution is a member of the organization of loan companies operating on the Internet. ZFP’s task is to build a positive image of the loan industry, which is why ZFP requires its members to provide high-standard financial services.

The Rich loan widget presents the opinion of customers about a given company. We can see the number of stars awarded by customers above the Rich loan logo. So this is an objective assessment of people who have used the services of a particular loan company. Additionally, on Rich loan’s website, we can check the expert opinion expressed in the monthly ranking.

An example of widgets from cash credit

An example of widgets from cash credit

When browsing the websites of loan companies, we can also come across certificates issued by BIG, KRD, and ERIF. These certificates inform us about payment reliability and timeliness in paying all fees.

The distinction Firm is a BIG certificate confirming current financial credibility, which means that the company pays its liabilities in a timely manner.

The KRD Reliable Company is information that a given institution is financially reliable and is committed to compliance with business ethics and the services it offers are rendered at the highest level.

The ERIF Receivables Security Certificate confirms the application of a security policy in receivables management.

When choosing a loan institution, it is worth paying attention to its certificates and cooperation with other institutions. Thanks to this, we can check how the company is assessed by market participants, specialists and other clients who have already used the services of a given company.

Benefits of Internet Loans


Maybe you are in a situation where you need to borrow money, but as many people know, after the financial crisis there is not much help to get from the banks if you cannot put collateral up and down, so what to do to solve the problem ? An alternative is to consider taking out a loan here on the internet. But, there are many loan companies in the jungle here and what benefits does a loan online have for you?

If you have a really urgent need for money, it can be incredibly frustrating to just face resistance and in some cases, even feel suspicious of those who should have helped you instead. So, what alternative do you have to get back on your feet? In fact, quite a few, if you only know where to look.

Online lenders – a good option if you have been rejected by the bank

Online lenders - a good option if you have been rejected by the bank

There are many lenders online that are ready to lend you money if you need help. Of course, as with everything else, it has a price, and you must not think it will come for free, but it does not do anything else in life. But, at least you don’t have to fight the bank.

If you want to know more about how to borrow money online instead of at the bank, read on below where we take a closer look at what benefits you have with online loans.

It is in every way easier than in the bank

It is in every way easier than in the bank

Here, we have already touched on the biggest advantage of a loan online, because it is obviously easier to borrow money online than to get a bank loan.

Since the entire application process takes place online, you do not have to spend time at meetings in the bank, and you also only need to send in minimal documentation. This makes the whole process as easy as possible and you can rather spend your time on other things.

You can also apply for loans from as many lenders as your heart desires, giving many more options as the best deals start to emerge. Submitting an application to more than just one lender is also a good way to find the cheapest and best loan.

Loans in the bank

Loans in the bank

If you choose to try to get a loan from the bank instead, you can risk getting a long nose if you are not at least 25 years old, are an old customer in the bank, have a house or a car as collateral, and in additionally has a fairly high income. This is usually the minimum requirement for a bank to consider your loan application at all.

There are so many requirements and conditions that it can be difficult to get an overview at all. The bank is also very slow when it comes to processing the application, so if it is urgent, then you are better served with other options.

Of course, you must also be accountable to the bank, who will have full insight into your financial habits and consumption. When you finally get the loan granted, you must politely and politely tell the bank what to spend the money for.

So you have to reveal all your personal finances and personal habits to the bank, which you avoid with an online loan. There is no one to interfere with what you want to spend your money on, and this freedom is worth it in itself, if the other benefits were not enough.

Everything You Should Know About Loan Interest



Sometimes it may be necessary to borrow money when there is something you do missing. Loans may be the necessary financial aid that means you left. Get your head across the water when it comes to your personal finances.  Do you really care about the interest rates that you have to pay on your loan?

In this article, we will try to help you better understand what is important to consider when finding the best consumer loan in the jungle of deals that you are bombarded with from online loan companies on a daily basis. In this article, we will look at the importance of interest rates on how good terms you can get on your loan, so join us further.

What is the APR value of a loan?

What is the APR value of a loan?

When you start looking for the cheapest and best loan for just you and your financial situation, there is something called the APR value that you have to take into consideration. APR stands for annual percentage rate, which is the total annual cost you have on your loan.

The APR value of a loan is often easily explained as a form of kilo price on the loan. In other words, the lender that offers the lowest APR value can offer you the cheapest loan.

All banks and loan companies are subject to a requirement under the Credit Agreement Act and price marking regulations to specify the APR value, along with all other information about the loan. The APR value gives the real and total picture of what you actually have to pay for your loan annually.

In practice, this means that when calculating the APR value of a loan, all costs, both establishment fees, fees and additional costs, as well as interest, must be included in the calculation. This can determine whether you should choose one particular loan instead of another, so always check the APR value of the loan you are being offered.

What are interest rates on loans?

What are interest rates on loans?

Interest on loans is basically a cost that is stated and calculated as a percentage of a specific loan amount.

Let’s take an example; If you borrow 10,000 in the bank or through one of the many lenders online and this loan under the loan agreement has an interest rate of 20%, you have to pay 20% of 10,000 – ie 2000 – in interest.

So, if you repay the loan within one year, you have to repay a total of 12,000, since you have to pay interest in addition to the loan amount.

The example above is very simple and logical and gives a general picture of what the interest rate actually indicates. However, in practice it is a known matter that this information alone is often misleading and the current annual cost of your loan may prove to exceed this amount significantly.

A loan comes with several types of interest

A loan comes with several types of interest

It is therefore important to be aware that in the example above it is only the nominal interest rate, which is the interest rate which gives a simple indication of what you have to pay when you borrow money. What this interest rate actually becomes depends on the specific loan agreement and will thus vary from the different types of loans and providers.

If you are looking for loans online or at some bank, the lender will often provide guidance on a given interest rate. However, this is only a guide and you have to be careful to believe that this interest rate will be used in relation to your specific loan agreement. This is because some interest rates are calculated in relation to the individual borrower, so that the risk is offset against the cost of the loan.

Nominal interest rate

However, the nominal interest rate is not worth much in itself, and if you only use it as a starting point, you will not get a fair picture of which loan is the cheapest. Below you will be presented with some interest rate concepts that are also relevant when considering the interest rates on the different types of loans.

Effective interest rate

The effective interest rate is generally more reliable than the nominal interest rate, as it shows more clearly how much you really have to pay to borrow money from a bank or a lender online. It is also termed “effective” that this gives a clearer picture in the measurement when comparing loans.

Also included in the effective interest rate is the interest rate, which can otherwise be difficult to map based on comprehensive loan documents, which is why the effective interest rate is a more accurate estimate of what is to be paid in interest on a given loan.

This also avoids having to make the cumbersome calculation required before finding the interest rate, which can be difficult if you do not have much interest or understanding of finances.

Loans with floating or fixed interest rates

An important consideration to take when it comes to the interest rate on your loan is whether you should choose a loan with a fixed or floating rate. These are the two primary interest rate models found in the loan market, so it is important that you choose the model that you are most comfortable with.

Below, we have outlined the advantages and disadvantages of both of these interest rates, so you can get an idea of ​​which option is optimal for your particular situation. With a floating rate loan, it is meant that the loan is regularly adjusted in parallel with the market rate.

In other words, this means that you have the opportunity to get a higher or lower interest rate than what was the starting point when you took out the loan.

Floating interest rates

There are several types of floating rate loans, and the difference is that some have more frequent interest rate adjustments than others. For example, there are loans where the interest rate is adjusted every year, while there are also other types of loans where the interest rate can only be adjusted every five years.

With a floating rate loan, it is possible to get a lower interest rate on the loan if the market interest rate should fall, but there is also a risk that the interest rate may rise during the same period.

Therefore, it is generally a matter of proper judgment whether you have confidence that interest rates will fall, or whether you believe interest rates will rise, so a floating rate loan may not necessarily be the most ideal solution for you. With a fixed-rate loan, you avoid worrying about changes in the market interest rate, and you can therefore generally sleep better at night.

This is because the interest rate does not change during the loan period unless you choose to convert the loan so that the interest rate is adjusted again.

Fixed interest rates – a safer interest rate model

The fixed rate model is, as the name implies, a fixed interest rate, which is usually not possible to change during the loan period. This model may be attractive, for example if the market interest rate has been low for a long time and the fixed interest rate is therefore relatively low, but this is still no guarantee that the market rate will remain low.

The advantage of a fixed interest rate is that if the market interest rate turns out to increase later, you still avoid higher interest costs.

May have the opposite effect

In addition, you must also be aware that the fixed interest rate can also have the opposite effect. For example, you can take out a loan at an average interest rate, and if the market interest rate falls sharply, you may need to reverse the loan, which can be expensive for you in terms of administrative costs.

In relation to loans with floating interest rates, it can be said that the fixed interest rate is often well above the market rate and thus the amount of interest. This is due to the fact that you do not have the same risk of sudden interest rate increases as you have for example with floating rate loans, and therefore you must compensate for a safer interest rate model.

In addition, you can also take it a bit more calm when there is international turmoil and there is talk of interest rate increases, as this does not affect you who have chosen the secure solution in the form of a fixed-rate loan, and still sleep well at night.

Do small business owners have a real chance to get a loan?

Being a tradesman is nothing to be ashamed of; on the contrary, be proud of your activity. Being independent sounds great, but it is no honey, it will confirm every starting entrepreneur who is trying to succeed in our market. There are more than 2,000,000 sole traders in the Czech Republic, but only half of them are actually active. Even so, they make up one tenth of the population and should be viewed with respect, not only being dependent on themselves, but also employing thousands of people.

It is very difficult to finance such projects from your own pocket, so sometimes we have no choice but to look for some help in the form of loans.


Bank loan for self-employed

Bank houses do not only provide loans to employees, but also to people who have taken up business. Conditions may vary slightly, but you cannot do without your ID, trade license and tax return. If you are in business for less than 12 months, prepare at least a bank statement for the last 3 months.


Non-bank loan for start-up entrepreneurs

Non-bank loan for start-up entrepreneurs

A significant percentage of applicants in banks fail, either because of lower incomes or because of a negative record in the debtors’ registers. Non-banking companies are more benevolent.

Many dozens of companies deal with non-bank loans, so be careful when choosing the right one. Keep in mind that the interest rate and APR will be higher than in the banking sector because they carry a higher risk. It doesn’t mean you can’t find a convenient online loan, but you know, cut twice.


Business loan is not for everyone

Business loan is not for everyone

Every business sector is different and with it the phase we are currently in. Taking a loan at the very beginning is a much higher risk than when we have been doing business for several years. Consider carefully whether it is really worth it. Drowning all the savings in a failed project and getting into debt is nothing you want to experience.

Assuming your business has been operating for a long time and you fail to meet the demand, there may be a spot credit for the self-employed. The funds raised can be used for a new branch, material purchase or a new workforce.


Business is a long haul

money loan

Although you do not have to confess to your employer, business is associated with many pitfalls. Everything you have to ensure yourself and if you get sick do not count on sickness. In the beginning, you will be on your feet for 18 hours a day, without the right to pay. On the other hand, you are not limited by any limits such as promotion or wage increases. The first years are like roller coaster, once you have a great few months later you hardly pay the rent.


It’s worth it?

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There is nothing better than the feeling of doing well. In business it is doubly true that what you do not have it, so is it worth the effort? Certainly yes, there is no better satisfaction when your customers adore your goods or services and keep coming back to you.

Loans for civil servants

A loan for civil servants has lower interest rates than an average loan because almost all lenders extend the civil servant loan to borrowers who are otherwise employed in public administration.

What is an official loan?

What is an official loan?

A civil servant loan is a loan that is granted to civil servants and other authorized persons at reduced interest rates. To which group of people a discounted loan is granted, of course, each lender decides for himself. Most grant cheap loans for civil servants in addition to civil servants, some banks extend the range of low-priced credit customers to almost all employees who have been with theirs for several years Current employers are employed. The administration of cities and municipalities as well as the federal states and the state are considered to be public services;

Activities in hospitals are assigned to the public service if they are performed in a city or state hospital or in a university clinic; in the case of church sponsors, whether the sponsor is directly the official church or an organization subordinate to it, such as Catholic Caritas or the Evangelical Diakonisches Werk, or a private law organization set up under the umbrella of the church, decides whether the employment relationship is to be recognized under public law. Working for other public law organizations such as the state broadcasters or the Stiftung Warentest is also considered employment in the public service.

Why do public sector workers get discounted loans?

Why do public sector workers get discounted loans?

Lenders can provide loans to public sector employees on favorable terms, as jobs with public sector employers are considered to be above average security. While civil servants are not as extensive as civil servants are protected against dismissal by the employer, termination of the employment relationship for operational reasons is largely ruled out. This job security improves the creditworthiness of credit applicants with employment in the public service, so that lenders grant them particularly favorable conditions. In addition to reduced loan interest rates, the discounted loan terms also include higher loan amounts and longer terms.

Processing of lending

Processing of lending

Loans for civil servants are granted by both publicly employed and civil servant banks and general commercial banks. Since the employer must always be specified in the loan application, potential lenders always know that their credit customer is one of the employees in the public service. Nevertheless, it is advisable to explicitly request a loan for a civil servant, since otherwise the largely automated processing of applications can lead to the borrower receiving a loan without favorable conditions. A loan comparison to find the cheapest offer is also essential for a loan for civil servants.

2000 USD credit – a very popular loan


Taking out a loan is no longer a big deal these days. After all, small and large loans are offered and advertised on every corner. As a prospect, it is therefore important to make only a few decisions about the loan in advance so that the admission can be carried out quickly and safely.

The loan amount always plays a major role when taking out a loan. It decides how much of the loan can be bought. As a rule, however, it is first considered what should be purchased and then the loan amount is adjusted accordingly. However, it should never be forgotten that you have to be able to afford the intended project. The loan amount should therefore always be chosen carefully.

The 2000 USD loan is very popular. It can be taken up with simple means and a normal credit rating. Banks and savings banks usually prefer to grant such small loans rather than large loan amounts because they know that the risk of default on these loans is significantly lower than for large loan amounts. In addition, the borrower usually does not have to name a guarantor and receives the 2000 USD loan even if the income is not quite as high or comes from a temporary job. Because 2000 USD are paid off quickly – there is no need to take an intensive look into the future.

What a 2000 USD loan can be used for

2000 USD represent a relatively small sum, so that a 2000 USD loan is also referred to as a small loan. Small loans are usually taken up to finance spontaneous purchases such as technical equipment, furniture or clothing and jewelry. Often, the money is also used to settle outstanding bills and liabilities or to clear the checking account or overdraft facility. Those who like to travel will also use the money for their next vacation.

The area of ​​application is therefore very broad and presents the borrower with the task of choosing the type of loan so that it fits the intended purpose.

Which types of credit are recommended?

Which types of credit are recommended?

The question of the right type of loan is answered by using the money. Those who want to buy consumer goods can do so with the help of a consumer loan, which they take out directly from a retailer, or with an installment loan, which can be requested from almost every bank.

It is also possible to use private loans or the overdraft facility. However, it should be seen here that the costs for the utilization are not too high and fit the project. In general, these types of credit are more recommendable when small loans cannot be taken out in the conventional way and therefore alternatives have to be used.

Credit for furniture and fixtures

All people share the goal of creating the most beautiful home possible. The living quality of your own four walls depends on the furniture that forms the heart of the interior. But here the following applies: quality really has its price. If you want good furniture, you have to dig deep into your pocket. Often this can not be done other than through a loan for furniture, which can be taken in different ways.

The credit for furniture from the dealer

The credit for furniture from the dealer

The easiest way to get a loan for furniture is to contact the dealer, because at least the big chains are well aware of the fact that their products have a high price and therefore always offer different financing offers. To do this, they work with financial service providers, but this is not interesting for the customer. It is important for him that he receives the furniture immediately, is allowed to pay it off in installments and that there is often no interest on the financing. This means that financing is the cheapest way to get a loan for the furniture and at the same time it is the way that involves the least administrative effort.

The loan for furniture from a bank

The loan for furniture from a bank

If you cannot get financing or do not want to take it because you do not want to owe the department store, you can also contact a bank to get the money. Most banks do not offer a specialized loan, such as that available for cars. However, new furniture can usually be bought with the funds that can be obtained through a modernization loan or a renovation loan. However, both sums are clearly too high and actually only help if new furniture is to be purchased as part of extensive renovation work. The alternative is the personal loan. This has slightly higher interest rates than the earmarked loans, but it leaves the bank to decide what exactly the money is used for.

However, you have to spend at least 2000 USD on most money houses. The new furniture does not cost so much, you usually have to work with the overdraft facility: This means that the bank increases the corresponding credit line in the checking account by the amount you need and you can simply withdraw the money from the account and directly in cash pay in the furniture store. The disadvantage of this approach is the immensely high interest burden, which is usually over ten percent. Experts are therefore unequivocal in their assessment of this method: if you don’t have to borrow in this way, you shouldn’t do it, but stick to one of the other types of credit.


Credit for bathroom renovation.

Refurbishing a bathroom can cost several thousand USD. Bathtubs, sinks, tiles and fittings made of high quality materials are durable, but can also be very expensive. The savings that are made are often not sufficient for such high investments. A loan for a bathroom renovation can help and is available from many banks. Direct banks on the Internet also grant these loans.

How the loan is available

How the loan is available - offers from artisans

The renovation will not only make the bathroom more beautiful and modern, it will also save energy costs. The property also experiences an increase in value through regular renovations. Since the renovation of the bathroom can be expensive, offers from various craft businesses should be obtained. At the same time, these offers serve to determine the required financial means. If the renovation is not subsidized by the state because the eligibility criteria are not met, it is important that the loan for the bathroom renovation is chosen by the cheap provider.

Top up current loan for bathroom renovation

Top up current loan for bathroom renovation

A loan for a bathroom renovation is also available online. With a good credit rating and positive private credit checker information, direct banks are happy to provide a loan on the Internet. Consultation costs and, in some cases, account management fees do not apply to direct banks. Therefore, online loans are usually a lot cheaper than is the case with a loan from your house bank. If the property is still being paid off, the property owner can top up the ongoing financing with the renovation costs.

However, whether this is worthwhile should be checked carefully, because a separate loan can often be cheaper. In principle, it should be taken into account that barrier-reducing measures, repair measures for renewal, the rectification or repair of structural defects are eligible. This should always be the first attempt before taking out a bathroom renovation loan.

Guarantees or guarantees can be helpful

Guarantees or guarantees can be helpful

If the application for a loan was unsuccessful, another option for granting a guarantee may be. The latter undertakes to pay the installments due if the borrower defaults. This significantly reduces the risk of credit default for the bank. It is therefore necessary that the guarantor has a good credit rating and that the income is high enough for the bank to accept it. In the event that valuables are still available, such as a life insurance or a property, the loan can also be secured.

Personal loans

Personal loans

Another option is a personal loan. This is possible in a private environment, for example through family or friends. The advantage is that this loan is usually granted without interest and without red tape. But even if it stays in the family, a contract should be drawn up in which the amount of the loan, the installments and any interest are recorded so that there are no disputes later.

If you cannot find a financier in your private environment, you should consider that many private individuals are now making their money available on the Internet. It is generally advisable to carefully check the numerous offers and compare them. This is possible on numerous finance portals with a credit comparison. A comparison is extremely simple, non-binding and free of charge. It is indispensable, because this is the only way to choose a cheap loan for bathroom renovation with fair conditions.

Bank opinion on the cost of early repayment of the loan

After some time, the Widecore Bank rebounded the waters of the domestic financial market. Her attention is again directed towards consumer housing loans. Her statement on the cost of early repayment of the loan will not be very pleasing to the banking institution.


Unfinished fight

Unfinished fight

On Consumer Credit (hereinafter also referred to as “ LFS ”), codified, inter alia, in its Section 117 also new possibilities and conditions for early repayment of the loan. This has exacerbated the effort to make the whole process cheaper and simpler, which until then was extremely costly, when the fees for early repayment were normally calculated at hundreds of thousands of crowns. At least in addition, situations that could have been difficult for consumers to predict, such as illness or death in the family, were also addressed.

Despite the legislator’s efforts, the interpretation of some provisions of the Act has remained quite unclear. Pursuant to Section 117 (2) of the LAS, the creditor is entitled to reimbursement of the costs reasonably incurred in connection with early repayment. What exactly, however, banks can or can not count on them is not further elaborated. In doing so, banks must, in accordance with Section 95 (2) of the OCTs, state in the pre-contractual information for applicants for a residential consumer credit the amount of the early repayment fee or the method of its calculation. As the market regulator, the Widecore Bank decided to come up with its own interpretative opinion on this matter.


No commission and interest expense

money loan

The Widecore Bank took as the main criterion for assessing the effectiveness. Therefore, the costs must be substantively necessary and duly justified in order to be recoverable. In particular, the opinion mentions two cases which, for various reasons, are considered inadmissible.

The first is the commission paid by the provider to the intermediary for the mediation of the consumer housing loan. The Widecore Bank associates this cost with the conclusion of the contract, ie with the establishment of a legal relationship, not with early repayment. The commission as such is perceived by the Widecore Bank as an optional expense of the lender, which itself determines its amount and payment to the intermediary. Thus, the provider has to deal with any commission costs that are budgeted for a period exceeding the early repayment period itself.

The second case where the cost of early repayment of the consumer housing loan may be incurred and explicitly targeted by the Widecore Bank is the reduction of the provider’s interest income after early repayment, or the interest expense of the provider on its debts. According to the Widecore Bank, this lost profit (lower revenues) or futile expense (interest expense on borrowed funds) cannot be classified as purposefully spent, as there is no connection with early repayment.


Waiting for justice

loan payment

Banks are still delaying access to the opinion. In itself, this is only one possible interpretation, which is not legally binding. Its impact is still rather marginal, as the early repayment of housing loans is slow. Moreover, instead of clarifying it, it may make the situation more obscure, as the explanatory memorandum to the OCTs mentions both of the above cases as cost-acceptable.

The whole situation will probably have to be resolved only by a court case, or more precisely by the interpretation of the term on the basis of case law. However, this is currently out of sight, so there is some restraint in place.