Category Archives: Loans

Loan and income tax – what to keep in mind

As it is well known, taking a loan involves additional costs. In addition to the amount borrowed, we always have to pay interest. Some, however, are wondering if these are the only fees or should they also expect taxes. In some cases, this is indeed the case, but there are also situations that exempt from tax.

When we borrow from a private individual

borrow money

To learn more about this matter, at the beginning you should ask yourself an important question – from whom we want to borrow money. If we sign a so-called loan agreement with a private individual, he or she may be subject to the tax on civil law transactions. In practice, this means that the person who collects money is obliged to pay the state 2% of the amount borrowed.

It should be noted, however, that only amounts over USD 5,000 collected from one person over three years are taxed. When this ceiling is exceeded, the borrower has 14 days to pay the applicable fee. Of course, it often happens that when borrowing money from a private individual we do not draw up any contracts, and this is a big mistake.

We should do it if we borrow sums greater than USD 500. Why is this so important? If the Tax Office finds out about a loan, it may impose a tax of up to 20% on it. Borrowing from a private person (who is not our relative) is usually associated with considerable risk and it is best to document the entire transaction and carefully check the terms of the contract, especially repayment information.

What about income tax?

We don’t really get any income by borrowing money, so we don’t have to pay tax. The lender is subject to taxation. When counting out a loan at an interest rate, he counts on profit, so he should pay tax on it. The last point is extremely important. He does not bear fees on the whole amount borrowed, but only on interest, which becomes income. In this case, a 19% fee is required, commonly known as tax – referring to individuals or traditional income tax – for businesses.

Advantages of non-bank loans

money and dollar

It turns out that when collecting money from non-bank companies, we do not have to remember any taxes. Therefore, we will be exempt from the aforementioned tax on civil law transactions, although of course we will still be obliged to pay the full amount of the loan plus accrued interest. As you can see, non-bank loans are much more profitable than, for example, a loan from a private individual.

In addition, we will be dealing with clarity of rules and certainty that we will have to give back exactly the amount (no more and no less) about which we were informed when concluding the contract.

There are ways to borrow money without paying taxes. However, these are a few situations and their choice should depend on our individual needs. One thing is certain – each transaction should be documented so that in the event of unforeseen situations we can check the provisions of the contract and refer to them.

Unpaid loan – what are the consequences?

Borrowing requires the return of not only borrowed capital, but also interest and all additional costs. What if, for various reasons, we are unable to pay our liabilities on an ongoing basis? An unpaid loan usually has financial consequences.

Every lending institution, including not only Fine bank, but also banks and credit unions earn money by borrowing money, so they carefully supervise repayment timeliness. Modern IT systems help them in this, which not only automatically records repayments on clients’ accounts, but also informs about possible delays. Their occurrence usually begins a separate procedure, which aims to clarify the situation and lead to the settlement of outstanding obligations by the customer as soon as possible, while charging additional costs.

Unpaid loan – consequences

Unpaid loan - consequences

Let’s get to the specifics and examine the consequences of an unpaid loan. If you did not pay the installment because you just forgot how to settle the liability as soon as possible and most likely it will end up with small costs associated with penalty interest or the costs of the debt collection process.

The situation is slightly different in the case of arrears caused by financial problems. It is not worth underestimating such a problem and wait for the moment when our financial situation will improve. It will be wiser to contact the lender and find a solution together. Postponement of installments (so-called credit holidays), spreading repayments into more convenient installments or simply freezing costs related to debt collection are just a few of the scenarios that may work in such a situation.

The costs associated with minor arrears are usually not excessively high, although this is not the rule. The consequences of prolonged non-repayment will be much more severe for us. If the debt is at least PLN 200 and the arrears last at least 60 days, we are at risk of being entered in the register of debtors. Such an entry may in the future make it very difficult for us to apply for more loans. And even if we can find an entity for which this will not be a problem, the cost of the loan will be higher.

Termination of the loan agreement

Termination of the loan agreement

An unpaid loan may also, according to the concluded contract, result in its termination by the lender. After the notice period has expired, we will be required to pay the liability once. This means that we will have to pay back the entire loan with all additional costs accrued for the day, not just the current arrears. At the initial stage of the debt collection process, the lender will conduct it without the court’s involvement and then proceed to court recovery. What is the difference? Debt collection carried out without the participation of a court involves sending reminders and requests for payment, for which, of course, additional fees are charged. If, despite taking such action, the commitment still remains unregulated, the case goes to court and usually ends with a bailiff’s execution.

Unpaid non-bank loan and checker

Unpaid non-bank loan and checker

If you think that information about the timely settlement of liabilities is transferred to the Credit Information Bureau only by banks and credit unions, you are very wrong. Currently, most loan companies also provide such data because they want to act not only in their own interest, but above all without harming their clients. This means that they are guided by the principle of responsible lending, and the reporting of unpaid loans is to protect consumers from incurring / adding another financial obligation that may be attached to the debt.

In addition, each debt collection process requires the lender to be extra involved, to take certain steps and to draw conclusions to avoid such a situation in the future. The growing number of customers who are unable to pay their liabilities on an ongoing basis can lead to serious financial problems for the lender.

Therefore, remember to always contact the lender in case of arrears or risk of their occurrence and try to find the best solution. You will save a lot of time, nerves and money. An entry in checker may effectively hinder you from incurring further liabilities for a period of up to five years. If the delay is a day or two, you should not worry too much, but in any other situation the consequences can be much more severe.

Quick non-bank loan – will everyone get it?

Non-bank loans are an offer for people who want to get extra money for various purposes. There is a perception that loans of this type are available to everyone – but is it really?

Compared to bank loans, those offered by non-bank companies have several advantages, but they also have their drawbacks. First of all, we associate them with payday loans, i.e. taken for a fairly short period – usually a month, but that’s not all. We also have installment loans that are similar to bank loans. We can then pay them back in convenient installments.

However, we must be aware that, like banks, non-bank loan companies have their specific requirements that must be met. They differ depending on where and how much and for how long you will want to borrow.

What requirements must be met to get a non-bank loan?


• valid ID card – one of the main requirements is having a valid ID card, so if its validity period has expired, you won’t receive a loan

• appropriate age – loan companies often have age restrictions, for example, a loan can be obtained by a person between 21 and 65 years old

• living in Poland – we can apply for a loan if we have an address in Poland

• adequate creditworthiness – although there is a perception that anyone, even the unemployed and in debt, can get a non-bank loan, it is not always possible – adequate creditworthiness is necessary

• positive credit history – recorded in BIK and other databases, allows to determine creditworthiness, when we had problems with repayment of installments in the past, we can be refused when applying for a non-bank loan

• bank account – when we want to take an online loan, we will need a bank account, preferably with online access to be able to make a verification transfer from it – we cannot then use the account of another person (some loan companies also use other verification methods)

• mobile phone – you need to verify your identity

These are the main requirements that we must meet when applying for a non-bank loan.

However, it is worth remembering that each company and in this respect slightly different requirements – the conditions for obtaining a loan together with the process of its receipt can most often be found on the websites of loan companies.

Loans on even lighter terms

money and calculator

As we mentioned earlier, in order to obtain a non-bank loan, we usually need an adequate, documented and stable income, for example from an employment contract, disability pension, retirement pension. In addition, we need a positive credit history – we cannot be listed in the debtor’s register.

However, there are loans granted by non-bank companies that do not require us to meet these requirements.

They are often referred to as a proof loan and a loan without BIK. We can also go to the pawnshop for money – then we must have a property that we can pledge.

However, such loans are associated with higher risk and higher costs, so it’s best to think about whether it is worth taking them.

Where can I get a loan to a pensioner? And can it be done at all?

As the analysis of product lines shows, the loan to pensioners has been in high demand in some Russian banks in recent years. However, it is not that easy to take. The bankers themselves admit that the customer category mentioned is one of the most conscientious and binding.

Finance institutions were loaning to a retiree is not that difficult


Incidentally, employees of apartment offices could say the same thing. If, of course, it occurred to someone to ask them.  Next, let’s look at a few loan and finance institutions where loaning to a retiree is not that difficult. The particular age of this customer group and the modest amount of income naturally force lenders to be very careful.

It must also be added that the specified programs do not belong to the universal category. That said, we’re not going to go into detail about what kind of loan can be granted to a pensioner at Sberbank (a consumer who only has to be repaid after 75 years).
So, the first to offer a loan to a pensioner was Sovcombank.

His program provides that a Russian citizen can apply for a loan that can be repaid in full up to the age of 85. The maximum amount is 250 thousand USD (or less). Interest rate – 28% per year. This proposal can benefit both working and non-working pensioners (for old age, for people who left early).

Express Pension program

Express Pension program

You can also use the Express Pension program: up to 30 thousand USD at 33% a year. All you need is a civil passport.  Even a loan to a pensioner can give an agricultural bank. A special program provides loans for up to 100 thousand USD. And he only pays 15% a year for using the customer.

The program conditions (otherwise called “Pension Credit”) stipulate that a positive decision by the credit committee is only possible if the guarantor or co-borrower is involved in the transaction. Alternatively, you can deposit a liquid deposit.

In addition to the organizations mentioned, the pensioner is offered a loan as follows:

• Fast Bank – up to 200,000 USD at 26-35% a year. You must confirm the income or provide a certificate of the amount of the pension received.
• Honest Bank – up to 250,000 USD at 26% a year (and above). You need a pension certificate and a civil passport.
• Thrift Bank – up to 100,000 USD at 17% -21.5% annually Without doing a guarantee, it won’t work here. The bank also requires a passport, a pension certificate, and a pension certificate (or 2-NDFL if the customer is currently working).
• Cash Bank – up to 100,000 or up to 200,000 USD at 20% -21% per year. In the second case, at least one guarantee is required, but not in the first. You also need confirmation of the amount of the pension.

Find free time to make a company an older relative when you visit the bank


The pitfalls here areas with standard credit programs. To avoid future difficulties, it’s better to find free time to make a company an older relative when you visit the bank. And you shouldn’t just go, but with the goal of becoming a guarantor. This reduces the risk of refusing to issue and hopes for a lower interest rate.

How can you repay a loan with a loan?

Take out a loan from the bank. Is it possible to repay the loan early?

Modern life is a cycle of circumstances that can violate well-designed and constructed plans. The problem of the emergence of financial problems in the past decades is used to that modern people solve in banking institutions.

Citizens have the opportunity to borrow money to buy real estate, cars, household appliances, furniture and other goods that are necessary for a normal life.

The loan is also intended for buying building materials, solving business problems, treatment, rest, study and other needs. Any citizen with good credit and permanent income can take out a bank loan.

Obtaining any type of loan is easy enough because the banking sector has come up with a variety of loan programs that work like a magic wand to solve current problems. Bank customers often don’t even think that situations could arise in which debt repayment becomes a problem.

What can affect the ability to pay mandatory payments?


The causes of the complexity of the crowd. You can be:

  • Job loss;
  • a disease;
  • a jump in exchange rates;
  • Death of a family member;
  • one of the earning family members becomes unemployed;
  • Negligence;
  • the appearance of other life problems that have caused the financial losses.

Possible problems with loan defaults


Failure to Pay Compulsory Prisoner Payments The loan agreement has a number of other issues. It starts with the call from bank employees, then complaints letters from the management of the banking institution, legal action, executive staff are displayed at the debtor’s address. And worse: threats from special services.

The intimidation of unscrupulous borrowers is becoming a popular method of raising debt. In addition, credit bondage provides a penalty for non-payment of debts and bank penalties, which increases the total amount of debt by a multiple. According to experts, one way out of this situation is to take out loans to repay the amount taken.

To find the answer to the question of how to repay a loan with a loan, you need some important information. There is a term in banking law that means the full repayment of borrowings based on a new loan from a bank. If you understand the basics, you will need to take out a loan when refinancing or lending to repay another loan.

Main benefits of credit

  1. Refinancing helps the bank’s customers get out of the enslaved financial problems to correct the mistakes they made earlier.
  2. This type of loan repayment actually extends the repayment period without any financial loss.
  3. With the chargeback, the borrower can significantly reduce his mandatory monthly payment when repaying the debt to the bank.
  4. If you carefully study all bank loan programs in a country before taking out a loan to repay a loan, you can even reduce the principal of the debt.
  5. Refinancing can help you avoid fines and penalties for not paying the debt.
  6. This option of paying debt helps avoid litigation that takes a lot of time and nerves.
  7. Before repaying a loan with a loan, you can choose a bank with the most favorable terms.

What you need to consider before signing a refinancing contract

Before repaying a loan, carefully review the primary loan contract. Banking policy provides for special programs that help repay debts with an additional loan. The possibility of refinancing is often set out in the contract itself. It occurs after a certain amount of time has passed. The duration of each bank before the conclusion of a refinancing contract differs. The average term is six months, but other options are possible: three months or one year.

The management of the bank itself is interested in the fact that the repayment of the borrowed amount has been fulfilled. Therefore, the terms of the loan program offer the bank’s borrowers the opportunity to meet the determined debt payments by lowering interest on the main part of the loan, extending the loan term and other loyal programs.

Before a quick repayment of the loan, the contract must be read carefully.

Refinancing is not suitable for all loan contracts. For some of them, this method of repaying the debt tends to be irrelevant.

There are some banking program institutions that do not allow early repayment of the loan body. Therefore, this possibility must be clarified before signing the documents. Bankers argue that there are credit programs that do not make changes to the debt payment schedule.

In such cases, the refinancing contract is not useful. There are also banks where there is a commission for early repayment of the loan. These details need to be clarified. In 2011, the law prohibited the use of this method of calculating interest, but it is still considered a kind of hidden commission.

Can the loan be repaid early and what are the benefits of early repayment?

The early repayment of debts has many advantages. First of all, they relate to the psychological condition of the debtor. When the amount borrowed is given in full, the person feels much more comfortable and free. If you analyze the payments, early repayment of the loan automatically reduces the borrower’s principal debt by reducing the accrued interest.

An important advantage of debt repayment is that the money saved is invested in a profitable business and cannot be paid to the bank. In most cases, early repayment of the loan is beneficial for customers, but not for banking institutions. You lose unpaid interest on prepaid loans.

Until 2011, many banks generally provided large amounts of commissions and fines for prepaid debts. Legislation has now improved loan terms to borrowers, but there is still a moratorium for a period of six months, a year, or at least three months for early repayment. It is possible to clarify the duration of the ban in any bank in the loan agreement before the loan is repaid.

Refinancing consumer loans

Consumer loans take much longer than larger debts, but at the same time, they are not very beneficial to the family budget. You may have seen a loan interest rate that is much lower than that of your bank, which can be an incentive to refinance. It often decreases after a while.

This can be seen as a certain risk for the borrower who has borrowed the amount on less favorable terms. For example, your private bank credit will be issued. In order to repay a loan in advance from this financial institution, you need to deduct the loan contract.

If it is possible to refinance on more favorable terms, it is sufficient to issue only a standard document package to reduce the interest rate. If you decide to get a new loan from another bank, you will need to collect additional documents.

Where to apply for a small-loan?

It’s easy to apply for a small-loan


It is common that from one moment to another, an unforeseen expense arises that we should cover with priority, even if we have very far from our collection date or the planned income. Faced with these expenses, banks or lenders were the ones offering the help of money loans, but it was not always a fast or viable option.

Therefore, the financial institutions and the Lite lender loan pages were created, which with their efficient mini-credit system, present a very fast, secure process, with high approval rates and a fully Lite lender management, avoiding the need to resort to commercial premises, offices and others.

The quick loan pages offer amounts up to $ 900 in less than 10 minutes, so it is not difficult to obtain credits of considerable amounts in record time. Its main characteristics are its speed, the simplicity of its procedure and the flexibility in terms of requirements.

Through quick mini-credits it is possible to get a considerable amount of money without the need for payrolls, guarantees and even, some loan pages offer their services even when the user belongs to the Financial Credit Institutions delinquent file.

Applying for a loan and receiving a quick response, under a transparent contract and a totally Lite lender process, is now possible with quick loan pages, which free us from the worry of paperwork, extensive lists of requirements or denial for no apparent reason.

Next, we will present you with the most recognized loan pages for their excellent management, as well as for providing high amounts of money, with good repayment times and low interest rates.

Small loans, great solutions

Small loans, great solutions

In addition to these 6 recognized loan pages, there are other large Lite lender financial entities that contribute and improve the economic situation of Spanish citizens, giving them the push they need to get out of an unexpected expense.

Without a doubt, the best and fastest way to get mini-credits is with some of these Lite lender platforms, which with their system allow fast and free management of overwhelming paperwork, transfers, large requirements and annoying borrower interviews.