Bank loans are one of the most popular solutions used to support the home budget. These products are the source of so-called quick cash, which can be successfully used for any purpose. Their distinguishing feature is that they can be used by people with good credit history and the ability to pay their liabilities in a timely manner.
In the case of cash loans, recipients must take into account two costs: nominal interest rate and commission. The expansive monetary policy pursued in recent years by the National Bank of Poland has caused that now the level of nominal interest rate has been the lowest for many years.
For the examined loan in the amount of 10 thousand PLN with a 4-year repayment period, the average nominal interest rate today is 8.37 percent. Importantly, in the years 2010-2013 it was a value of 15.3 percent. up to 16.8 percent The decrease in this value is caused by the establishment of low interest rates – says Jay Skypers, financial analyst.
Loan for technological innovations
On the other hand, the second parameter responsible for cash loan costs behaves differently, i.e. the commission charged for granting these obligations. Over the past few years, this variable has increased significantly (more than twice). For the surveyed undertaking, the average reading of this parameter today is 9.08 percent, while in the period January 2010 – September 2013 it was below 4 percent. – says skypers
Fortunately it’s cheap
Low interest rates make real interest on credit products seem very attractive to recipients. Thus, the costs of handling these obligations are much lower today than a few years ago.
Currently, the average APRC of cash loans for 10,000 PLN with a 4-year repayment period is 16.17 percent. It is worth noting that just a few years ago this variable successfully took values above 22 percent. – notes Skypers
Low interest rates due to deflation
The cost of handling cash loans is much lower today than it was a few years ago. This is evidenced by the low reading of the average APRC of such obligations. As is well known, it is the actual interest rate that best demonstrates the attractiveness of given products. It should be remembered, however, that each commitment is made relatively easily. Their repayment generates a lot more problems. Therefore, despite the relative attractiveness of these products, the decision to enlist them should be carefully thought out.