People have always been interested in borrowing money. According to the latest report of the National Register of Debts “Why Poles are in debt” – 75% of Poles took a loan at least once in their lives.
Bank loans have the largest share in the financial market. In addition, approximately 700,000 commercial loan agreements are concluded every year for a total amount of PLN 4 billion.
The loan granting party undertakes through a loan agreement
transfer to a person taking a certain amount of money or things
marked only as to the species, and the recipient undertakes to return the same amount
money or the same amount of the same kind and quality.
Please note that the law does not specify who can borrow money
This means that the lender can be any company or even an ordinary person – e.g. me or you.
Thanks to this you can freely shape the loan terms. You are not bound by banking law, you do not need to perform a detailed check of the borrower’s creditworthiness, or keep any reserves, etc.
In addition – in accordance with applicable regulations – for borrowing money, you can demand remuneration (in the form of various fees and interest).
Borrowing is based on a regular contract between the lender and the borrower. Such a contract is very flexible, thanks to which you have a huge impact on its character.
You can borrow money for free or with pay
You can grant a loan for a week, month or several years. You can specify that the repayment will be made in many installments or in one.
In addition, you can arrange with the borrower that in the absence of repayment you will take over his property or someone else will have to pay his debt (so-called loan collateral).
In the event that the creditor does not want to comply with the provisions of this contract – you can force him to do so in court.
Exactly the same do companies that specialize in making money by borrowing money.
Payday loans are ordinary loans from non-bank companies
The beginnings of the professional payday market in Poland date back to the nineties. The system transformation and free market changes enabled the establishment of companies that professionally dealt with borrowing capital.
Provident had the greatest impact on the sector’s development. This British corporation in 1997 introduced appropriate capital and know-how to the Polish market.