APRC, payday loans, loan consolidation and other key loan concepts

Analyzing the offers of individual loan companies, we can come across a number of strange terms and concepts. Today we will explain the meaning of the most commonly used.

Economic Information Bureaus – colloquially called debtors’ registers collect and share information on unreliable debtors. Popular BIK is an institution that collects data on all credit and loan obligations. Contrary to popular belief, BIK is not a black list of debtors. BIK receives information about both delays and timely repaid financial obligations.

The total cost of the loan is the sum of the fees you will have to incur when borrowing

money credit loan

A free payday loan is a loan for which you won’t pay a single zloty. The total basket of free payday pay is USD 0. Only new customers of the loan company can benefit from this promotional offer. Currently, the highest free payday loan of USD 2,500 is offered by NEW Loan.

Loan consolidation – it is the repayment of all current credit and loan obligations with one consolidation loan. When taking a consolidation loan, we will pay back one instead of several loans.

Withdrawal from the loan agreement – if you change your mind within 14 days of signing the loan agreement, you will be able to withdraw from it without giving reasons for your decision. To withdraw from the contract, you will need to provide the lender with a signed statement. Such a document is usually attached to the loan agreement as one of the attachments.

Commission – the cost of preparing and granting a loan, which is also the lender’s income.

Verification transfer – is a transfer made by the borrower to the lender’s account. Its amount is symbolic and depending on the company ranges from 0.01 to 1 USD. When the lender receives the money he will be able to check if the account owner ‘s data match the data provided in the loan application. This procedure protects both the borrower and the lender, preventing fraud and abuse.

APRC – actual annual loan interest rate

loan interest rate

The APRC value will show you how much you actually pay for the money you borrow. The APRC takes into account not only the amount of interest, but also commissions, possible insurance for loans or home service charges.

Repayment date – this is the maximum date within which the loan should be returned. In most loan companies, the repayment deadline is 30 days. There are also those in which you can pay back the loan within 45 (Extra Wallet, Loan Plus), 60 (Express Cashier, Ferratum Bank, Ofin, Wonga) and even 61 days (MoneyMan, InCredit).

Refinancing loan – if the borrower is unable to pay back the loan on time, he can reach for the so-called refinancing loan intended to pay off current debt.

You will need to pay a commission to get a refinancing loan


Extension of the repayment date – if you are unable to pay the loan on time, you can extend the repayment date. You will need to pay a commission to “buy the time” needed to accumulate the amount you need. Currently, following the implementation of the anti-usury act, only a small proportion of lenders can extend the repayment date.

Internal debt collection is the activities carried out by a loan company to enforce debt repayment. The most popular are sending reminders, i.e. SMS, letter or email reminders to settle the debt. Many companies also use telephone debt collection.

External debt collection is the activity carried out by an external debt collection company aimed at enforcing debt repayment. If internal debt collection does not bring the expected results, loan companies usually transfer cases to external entities specializing in debt collection.