Loan with an interest rate
Most borrowers first pay attention to is of course the interest rate. You must bear in mind that banks use all sorts of tricks. Very low interest rates are often a lure for borrowers. When choosing a loan for people working abroad, we should compare significantly more important parameters and summarize how much a given loan will cost us. Only in this way will we make the right choice.
You can find offers from banks that offer loans at an interest rate of zero percent. In return, however, the borrower must pay a very high commission. This fee is often so high in such a situation that even a loan with an interest rate of ten percent may be cheaper than the one with an interest rate of zero percent. Therefore, if the interest rate is very low, compared to what the credit market offers in Poland, we should take a closer look at the given offer.
Of course, according to the offer, the interest rate is usually at this level, as in advertising, but it often happens that it is only for the first two or three years of the loan period .
Another thing worth paying attention to is the commission for the bank for granting the loan. It happens that the bank charges up to several dozen percent of the commission. What in the case of loans bearing interest at a fairly low interest rate of four or three percent, does not give measurable benefits to the borrower.
Therefore, the lowest interest rate is not always the best for you.
What to look for when choosing a loan?
Low interest rate is a very common practice used among banks that offer loans to people working abroad . In such cases, you can always find other hidden costs, or for example the obligation to take out additional life insurance. In addition, it is of course insurance, which is usually much more expensive than if we bought them individually. Therefore, it serves primarily to increase the bank’s profits.
The factor that best determines the cost of the loan is the real interest rate. Therefore, it is worth asking about it at the bank. It is a way to determine if a given offer is really cheap. In modern realities on the credit market, if the real interest rate is one-digit, then the offer can be considered quite good. The lower the real interest rate, the better, of course. In the event that the rate exceeds twenty percent, we should seriously consider whether to use such a loan or if it is worth looking for a cheaper offer. Perhaps another bank will be able to provide us with cheaper financing.