Month: July 2019

What is a debt assumption?

Debt assumption is also defined in the law of obligations and describes the transfer of an existing debt. The transfer takes place between two parties, from a debtor to a new debtor. Until the guilt is fulfilled, it does not have to stay with one person, but can officially change responsibility. Thus, the actual or original debtor is free from debt while another takes over. In fact, the debt is considered as a transferable legal object and also the creditor can change. Thus, even someone who has an open claim against a debtor, this transferred to another.

Differences assignment and debt assumption

A creditor need not ask his debtor whether he may hand over the responsibility or whether the creditor can change. As a result, claims are routinely transferred or sold to others, as is customary in companies and companies. The debtor only has to be informed about the change of creditor, but there are no further claims. If, however, the debtor wants to transfer his debt, it certainly requires the consent of the creditor.

Types of debt assumption

Types of debt assumption

There are two types of debt assumption. Once the liberating or private debt assumption and once the cumulative debt assumption. In the liberating or private takeover, the so-called old debtor is completely freed from his debt. The new debtor completely follows in the footsteps of the old debtor, with all rights and duties. In the case of a cumulative takeover, the existing debtor remains obliged. Both debtors thus remain joint debtors. However, this is not regulated by law, but of course as a joint debt. Legally regulated is only the liberating takeover and thus represents a disposition.

When does debt takeover take place in reality?

When does debt takeover take place in reality?

Why should someone take over the debt of another person, be responsible for it and be responsible for its fulfillment? In fact, this happens with real estate or loans and often also with spouses. For example, a real estate loan can run on a man who subsequently marries a particularly rich woman. This can now, to pay off the future common house, take the blame. Debt assumptions also occur when taking on contracts, such as when you take over the fitness contract of another person. Even if you take on a lease, which is usually difficult to cancel before the end of the time. Thus, it is not so rare that debts are transferred to another person. Of course, only if the new debtor has a certain benefit. So he may benefit from favorable interest from a contract or recognize other benefits.

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The best revolving loan in your personal account

A revolving loan – what is it?

A revolving loan - what is it?

Does your home budget need an injection of cash? This can always happen, especially during periods of increased spending. For example, before Christmas. What options can we then use? We can borrow from friends or family (but it is difficult to use this option in the pre-Christmas period), we can apply for a cash loan… or use a revolving loan in your personal account. A revolving loan is nothing more than a permanently available credit line. It can be used for any purpose. The basic feature of a revolving loan is the possibility of using the money granted by the bank several times – each repayment reduces the debt and allows you to use the funds again. Interest on revolving credit is calculated on the resulting debt. After paying off part of the debt, the bank charges interest on the remaining amount of the debt, not on the whole.

Revolving loan in the account – ranking

Revolving loan in the account - ranking

We sent a questionnaire to the banks, in which we asked them to send the conditions on which they would grant credit in a personal account to a customer who has had a personal account for 6 months, regularly credited with PLN 2,700. We asked for calculations for three revolving loan amounts: PLN 3,000, PLN 5,000 and PLN 10,000. Points were awarded for:

  • commission for granting and renewing a loan – 2 points could be obtained by a bank in which it ranges from 0% to 0.9%; 1 point – when it ranges from 1% to 1.5%; 0.5 point – if its amount is 1.6% – 2%
  • interest – 2 points could be obtained by a bank in which it amounted to 10%; 1 point – when it was higher than 10% and lower than 13%; 0.5 point – if it was more than 13% but did not exceed 16%
  • maximum available loan amount. If it amounted to PLN 50,000, we awarded 0.5 points; if it was higher than PLN 50,000 and did not exceed PLN 100,000 – 1 point; and if it exceeded PLN 100,000 – 2 points.
  • It should be added here that we assessed the maximum loan amount possible. In some of the banks that responded to our survey, it depends on the amount of inflows to your personal account. For example, in Bank Axermor it is granted up to six times of inflows (up to PLN 120,000) and in ASD Bank – up to eight times outflows (maximum PLN 100,000).
  • We did not award points if the bank gave the “from” interest rate or, when answering the question about the maximum loan amount, wrote that it is set individually.

Who won? Bank comparison

Who won? Bank comparison

Regardless of the loan amount, Meteor bank was the winner. The revolving limit offered by this bank won a total of 7 points. It is worth adding that in three categories: commission for granting a loan (0.5% min. PLN 25), commission for renewing a loan (0.5% min. PLN 25) and interest rate (9.60%) this product has reached the maximum number points. The interest rate is set as the product of the NBP lombard loan rate and the index, which has been 2.4 since October 7, 2013.

Second place – also regardless of the loan amount – was taken by the Credit limit in the account of Bank Sunichi. The silver medalist scored 5.5 points. Bank Sunichi won the maximum number of points for the commission for granting the loan (until the end of June 2014 it is 0%) and for the maximum possible loan amount – up to PLN 120,000.

The third place in the ranking in which we selected the best loan in the account in the amount of PLN 3,000 was taken by two banks: Raduken Bank and Credither. Both scored 4.5 points. It should be added that Raduken Bank is one of the few banks on the market in which the interest rate on the account loan depends on its amount – for 3,000 PLN it is 9.99% per annum (for the interest rate Raduken Bank scored the maximum number of points). In the lists of loans in the amount of PLN 5,000 and PLN 10,000, Credither and its loan in ROR rank third.

Speaking about account loans offered by Polish banks, it is worth mentioning the promotion, which until the end of 2013 can be used by Supitner Bank customers. As part of the promotion, the limit of up to PLN 1,000 is free of commission for the first year, in addition, the customer is subject to maintenance in the calendar month for a minimum 1 full day of a positive or zero balance of a Supitner UP account may receive a refund of interest up to a maximum of PLN 1000 of the used limit. On the other hand, if Millenial Bank customers use the Overdraft limit in any personal account up to any 7 days in the monthly settlement cycle, no interest is accrued. If the customer transfers the limit from another bank, the interest rate will be reduced by 2 pp. on the interest rate of the limit in another bank and may amount to even 10% per annum. Another big advantage of overdraft is that you can apply for it as soon as you open the account. However, it is better to wait a moment with the decision to run a loan in your account – especially if you do not need additional funds. Why? For several months, the bank will “get to know us” better and, based on our monthly receipts for ROR, will be able to offer us a higher loan. Bank Poyurt is a good example. One month after opening an account, you can receive a revolving loan up to one-time inflow. After three months, this amount increases to 3 times, and after a year – up to 6 times the average monthly regular receipts.

Overdraft – is it worth using?

The possibility of quick access to more cash is in some cases invaluable. In the Christmas shopping rush (although not only) we don’t have to use a credit card or cash loan. As with other cash products, in the case of an account loan, we must be aware that the amount used must be repaid. Therefore, we should not use all the available loan amount “at once”. It should be remembered that the impact on the invoice will be primarily allocated to repay the debt, and yet you have to live on something.

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What is a credit line?

 

Most likely, most of you guess what a credit line is, but hardly anyone knows what laws govern this financial product. The basis for receiving a credit line is the successful completion of the entire credit procedure and finally the signing of the contract with the bank.

Credit line what is it?

Credit line what is it?

A credit line is a type of revolving loan that is granted as part of a working bank account. It has the form of a limit that the borrower can borrow and is set automatically or at the customer’s request. Its amount is set individually and depends on the amount of inflows that go to the account.

The main advantage of the credit line is its renewal – the customer has the option of repeated use of the funds allocated by the bank, because each payment to the account automatically reduces the debt.

Renewal of the credit line usually takes place automatically, which is specified in the loan agreement. What’s more, the funds used within the limit can be used for any purpose in which the bank does not interfere.

Credit lines are very popular not only among individual clients, but also among entrepreneurs. The credit line for companies operates on similar principles as that established on a private bank account, with the difference that the limit amount in the case of business may be larger.

Credit line and debit

Credit line and debit

The credit line in your account is often mistaken for a debit limit. The fact is that both products belong to the catalog of credit products, and the mechanism of action in both cases is almost identical, but the difference is that the credit line allows access to higher amounts (up to PLN 150,000 for individual customers).

In addition, a revolving credit line is associated with more formalities. To be able to use this product, you must sign a separate loan agreement (or an annex to the one that is already there), which usually lasts for 12 months. After this time, it is automatically extended, unless the customer terminates it earlier.

Credit line without a bank

Credit line without a bank

An alternative to the above products is a non-bank credit line, which is an offer of parabanks and private loan companies. For obvious reasons, the non-bank line is not assigned to the current account (non-bank institutions cannot keep individual savings and settlement accounts), and the previously specified limit is paid to the account specified by the client, depending on the demand.

The contract is usually signed for a period of no more than 4 months, and after the contract is completed, the entire debt must be repaid. A credit line without a bank usually has a much lower limit – on the market you can find an offer with a limit of up to PLN 5,000, granted for 4 months, and an offer with PLN 40,000, granted for 60 months.

However, it should be remembered that the costs of a non-bank credit line are much higher than in the case of a traditional revolving loan granted by a bank.

Business credit line

Business credit line

An open credit line is often the only chance to maintain financial liquidity in an enterprise. A company that wants to apply for a revolving loan must have a current account in a given bank for a minimum of 3 months. This criterion depends on the offer of a particular bank, however, most of them are treated as a necessary condition.

An entrepreneur, when applying for a credit line, usually does not need to submit certificates of non-arrears with the Social Insurance Institution or the Tax Office, and the history of company bank accounts from the last six months and the annual tax return are often enough for the initial decision. OutBank, Medial bank and SYBank have such a product in their offer.

OUT credit line

ING credit line

OutBank has in its offer credit products a credit line for companies. companies with one of the following legal forms may apply for it:

  • a natural person conducting business activity individually,
  • civil law partnership of natural persons
  • general partnership of natural persons
  • partnership of natural persons,
  • court bailiff.

At the same time, a company may not settle accounts in the form of full accounting in the past or this year. The product is available to those entrepreneurs who have an account in any bank for a minimum of 6 months or, in the case of unsecured offers, for a minimum of 12 months.

You can submit an application for a credit line online, by phone or chat with a bank advisor, or by going to the nearest bank branch.

SYBank credit line

mYBank credit line

A revolving loan at SYBank can be obtained by entrepreneurs who have been on the market for more than 12 months, have a current account in the bank in Polish currency, their business activity is active and has not been suspended, and the economic and financial situation allows for taking the loan and its term repayment.

In such a situation, they can apply for a limit of up to PLN 500,000 by submitting an application online, at a selected outlet or by contacting a consultant by phone.

The flexible SYBank credit line allows you to secure a loan in the form of a credit line with a mortgage on the property (mortgage credit line) or with a de minimis guarantee of Gomez Bank

A mortgage credit line can be granted for up to 20 years, and funds paid from a secured credit line can only be used for purposes related to business operations (purchase of real estate, repayment of liabilities, refinancing of investment expenses, financing of current operations, etc.).

Credit limit for Medial bank companies

Credit limit for Medial bank companies

Medial bank allows entrepreneurs to receive a credit limit of up to PLN 500,000 without collateral, provided that they operate for a minimum of 12 months.

In this case, the loan agreement is signed for 12 months, and if the limit is repaid correctly, it can be renewed for another year. An entrepreneur who runs a one-man business by launching a credit limit in the package will also receive an innovative Idea Cloud company account.

The invoice, in addition to traditional functionalities, has a number of extras facilitating company management (e.g. a program for issuing VAT invoices, a virtual safe or cash flow forecasting).

As you can see, every bank is trying to smuggle credit products wherever possible. In addition to traditional loans, the customer can use a debit, credit line or credit cards. All these products for the bank are a guarantee of steady earnings and if we use them wisely, they can also serve us.

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