The minimum wage has more than doubled in the last decade. Higher income has an impact on the loan market. People who earn more willingly reach for loans and payday loans. According to research, we most often borrow for apartment renovation and car purchase. What do we spend on? The Poles’ home budget is most burdensome for current needs. Interestingly, we spend the least on education and spending money.
Gross salaries are getting higher, but appetite increases as you eat
Poland is one of the fastest developing countries of the former Warsaw Pact. According to calculations by the Central Statistical Office, the consumer in 2017 may purchase seven times more goods than in the so-called “Gierkowski” period of the PRL.
Current average gross salary according to Statistical Office amounts to PLN 4391 1 . Interestingly, 10 years ago, shortly before the economic crisis, the average salary remained at PLN 2,888. In turn, the minimum salary a decade ago was only PLN 960. Currently the lowest national price is PLN 2,000.
Unfortunately, compared to the countries of the Old Union, Poland is still a country of achievement. To reach the European leaders in terms of living standards, Poles reach for loans and credits. In the last 3 years, as much as 48 percent citizens of the country on the Vistula took out a loan. Only Romanians borrow more – 56 percent
The wealthier are more likely to take out loans
The richest in Mazovia is the most indebted. The average per capita income in this region is PLN 5,200, while the debt per head is PLN 269.96. For comparison, the average gross salary in Podlasie is PLN 3,719. In turn, the amount of the obligation per capita is PLN 45.13 and is the lowest in the country.
According to the “Poles’ Finances” report, the clients of loan companies are people who have higher incomes. Most often, payday loans or loans are used by consumers in the 25-39 age range. Such borrowers usually have a stable professional position, which makes it easier for them to repay the liability, without damaging the household budget 2 .
Compared to the EU, the debt of Polish households is lower. The EU average is 60 percent. In Poland, it remains at 40 percent. This state of affairs is caused by the less developed credit and loan market. Lower wages than in Western European countries also have an impact. According to research, a minimum net income of PLN 3,000 increases the chance of incurring liabilities 3 .
Expenses of Poles – what do we take out loans for?
A quarter of our monthly expenses are current needs – food and non-alcoholic beverages. A large part of the household budget is spent on housing maintenance fees – 19%. Transport is in third place – 8.7 percent Interestingly, we spend the least on education 0.9% and on pocket money – 1.6% 4 .
According to Wong, Poles most often borrow for house or apartment renovation – 37%. Compared to the previous edition of the survey (November 2016), there was an increase of 5 percentage points. The loan for the purchase of a car came second – 27 percent. Optimism may be caused by the fact that due to growing salaries and higher financial awareness, fewer and fewer people take another payday loan to pay back the previous one – a decrease of 2% 5 .
The loan market is growing. Therefore, non-bank institutions offer their clients new and interesting solutions. One of them is a secured loan. Usually, in this case, the loan is secured by a car. Interestingly, the borrower may use the covered car throughout the repayment period.
Loans without BIK – an interesting option for loan repayments
Banks have a statutory obligation to verify a potential borrower in BIK. Loan companies do this voluntarily. Therefore, a person who has a mortgage may not receive a loan from the bank due to the high financial burden. Therefore, before making any commitment, it is worth downloading a free BIK report and checking your score.
Non-bank institutions, making use of market demand, grant loans without bases. However, in this case you should be aware that the lenders will check the creditworthiness of the future client in other databases anyway.
Important – in assessing the repayment options of a potential customer, lenders are not as meticulous as banks. For non-bank institutions, repayment ability counts, not the BIK history. That is why, for example, people with franc loans as well as other financial liabilities can apply for loans without BIK.
How to take an online loan in four easy steps?
It is worth using a proven loan company. How to choose a lender? Before making a commitment, you should check whether the company you are interested in is in the National Court Register. The contract is equally important. When reading the document, pay attention to whether there are additional costs to the loan.
Naturally, when choosing a lender, the most important aspect is the amount of payday loan and repayment period. Usually, non-bank institutions provide sliders with the amount of liability and time to regulate the loan on their websites. This is a fairly convenient solution because the person concerned sees the interest rate and the required repayment amount.
The procedure for applying for an online loan is not complicated. The application is completely online. Before completing the form, you should prepare your ID card in advance. To verify the identity of the borrower, non-bank institutions require a verification transfer. The amount of the transaction is symbolic and depending on the lender is: 1 groszy, 10 grosze or 1 PLN.
Four simple steps for applying for a loan:
- Choose the amount and repayment period – use the sliders available on the lender’s website.
- Create a profile on the loan company portal.
- Send the application and wait for the decision.
- Money payment. The transfer can take place even within 15 minutes of submitting the application.