No borrower can imagine the Polish financial market without free payday loans, for which, if he is a new customer of the company, he does not have to pay anything. Unless it is 1 grosz of the verification fee, which is usually returned immediately to the customer’s account. The option to pay back the loan only in the amount in which it was borrowed is very – it is impossible – attractive conditions. fastpaths.com has more information
A loan company does not always earn on free payday loans
In each promotional loan regulations it is clearly stated that the costs of the free payday loan will not be charged if the customer does not exceed the final repayment date. Free payday loans are due not only to new but also to reliable customers. Those who did not manage to collect the required amount on time will have to reckon with the fact that they will have to pay for the loan. These amounts will vary depending on what their next step will be. Borrowers have a choice: extend the loan repayment period or opt for refinancing, refrain from repaying the loan and try to get along with the loan company by requesting a payday loan installment, as well as not repay the loan and wait for the loan company to move. Let’s consider all these solutions in more detail.
Extension of the repayment period – how much will it cost?
Extending the loan repayment period is, you could say, a luxury. It will not be used in every company, and it can even be said that it is now a rarity. Due to the introduction of the maximum loan cost by the Anti-Liaison Act of 2016, some companies prefer refinancing, which involves taking a second loan at another partner loan institution.
Both the costs of extending the repayment period and the refinancing costs will be similar and will usually be as much as the standard fees in a given loan company. Thus, they are usually at the level of 25-27% of the loan principal amount. Some companies do not indicate a specific amount and make them available only in the individual customer profile on their website. The costs of extension in companies that openly inform about them can be found in the article: “Where will I extend the loan repayment period?”
Spreading the free payday loan in installments – how much will I pay then?
The extension of the repayment or refinancing period can be used only before the repayment deadline and, of course, provided that this service is paid before it is provided. When this period expires, the only thing left is to expect the lender to charge the standard payday payroll costs. For this reason, it is worth earlier, before taking a payday loan, find out what the standard fees are in force in a given company and, if you want to minimize the costs in some way – choose the loan that will be the most profitable.
You must also take into account the fact that the non-bank company will add penalty interest (14% per annum) from the first day of overdue, and it will start the standard debt recovery procedure, starting with sending reminders and requests for payment. Of course, these calls are paid and, depending on the company’s policy, will cost from a few to even several dozen zlotys.