Alternatives to the classic annuity loan

Anyone who wants to or has to finance a property now faces a dilemma: on the one hand, the lending rates are low, on the other hand, the lenders hardly pass on the favorable interest rates on long-term mortgages to borrowers. Therefore, prospective borrowers should look for financing alternatives that enable cheap lending rates.

Reference rate bank loan

Euribor loan

The Reference rate bank loan is linked to the interest rate of the Agree bank. This does not mean that the same conditions apply, the interest rate is currently around one percent higher, but the interest rate curve adapts to the Reference rate bank loan interest rates. The interest rate is changed every three months. In this respect, this loan is also a variable loan.

However, since a variable loan will become too expensive for the majority of borrowers in the long term – especially if the interest rate rises – numerous lenders also offer a switch to a fixed-interest loan at the same time. The combination of Reference rate bank loan and fixed-rate loans is also known as a flex loan. This form of loan offers customers many advantages: on the one hand, they can switch from the variable loan to the fixed interest rate when interest rates rise again, and on the other hand, the other conditions are also borrower-friendly.

This means that special repayments can be made at each end of the interest rate section without having to pay a prepayment penalty. If you expect larger sums of money, for example from inheritances or severance payments, you have the prospect of repaying the loan in full within one year without having to pay prepayment penalties or interest premiums.

The Flex or Reference rate bank loan requires some market knowledge from the borrower. The interest rate market must be constantly monitored, otherwise there is a risk of missing a good time to jump into the fixed-interest loan.

Good lender loan

Cap loan

The Good lender loan is actually nothing more than a (variable) Reference rate bank loan, but there are some essential differences: it is a loan with an interest rate cap. In the contract, for example, an upper limit is set up to which the loan interest can rise. This interest barrier works when the interest rates of the Agree bank rise above the previously defined upper limit. In addition, the contract has a term of up to 15 years.

That means: a Good lender loan is nothing more than a tamed, variable loan. However, you do not get the interest rate limit as a gift, a small premium over a variable loan is due, the so-called cap premium, which is added to the loan interest. High special repayments are possible during the term. This product is interesting for those who want to secure the low building rates but do not want to keep an eye on their financing in order to always benefit from the best possible rates. Of course, it is also possible to combine a flex loan with a cap.



Both types of credit are currently useful. If you don’t want to expose yourself to any interest rate risk, you should definitely choose the cap variant. There is a little bit of bitterness: Usually the credit expectations of the lenders are higher than with a classic annuity loan. Both forms of financing offer particularly low interest rates and high special repayments are also conceivable.

Non-bank loans – what is it?


The loan does not have to be taken out of the bank. Non-bank loans are also very popular. Currently, Fine Bank are a much safer place to take out a loan, if only because of the stricter regulations that regulate their activities.

What are non-bank loans?

What are non-bank loans?

This term means any loans that are not granted by banks, but loan companies, for both short and long term. Usually these are smaller amounts, however, some Fine Bank allow to incur liabilities of several dozen or even several hundred dollars.

In opposition to loans granted by banks, liabilities from loan companies are more accessible. They also often do not require any documents to be provided, e.g. a workplace certificate. The loan is granted on the basis of a contract concluded between the borrower (a natural person) and the lender, i.e. a financial institution. This document is governed by art. 720 of the Civil Code.

Types and characteristics of non-bank loans

Types and characteristics of non-bank loans

  • Short-term loans payday loans – by far the most popular type of non-bank loan. The repayment is usually made within 60 days, and the sum ranges from 200 to about 3000 USD. Also available are mini-payday loans that can be taken online and their amount usually does not exceed 1000 USD. The entire process of granting payday loans online often takes just 15 minutes. To get it, all you need is your ID card, phone number, email and bank account. Poor creditworthiness is not an obstacle to this type of loan. An example is payday loans without BIK.
  • Installment loan – an ideal solution for people who need more cash, even up to tens of thousands of dollars. Usually it is granted for a period of 10 to 24 months, up to a maximum of 48 months. Repaid in monthly installments. These types of loans can be structured to be a suitable solution for indebted people. The larger sum of the liability allows repayment of the expired loan, and the extended – compared to payday loans – repayment time, allows the refund within the agreed period.
  • Mortgage loan – this is a liability incurred against a specific property. It can be a built-up plot, a single-family house or a flat. This property will be a collateral for the liability, so it can be used as usual for the time of repayment. In the absence of repayment, it becomes the property of the loan company.
  • Lombard loan – this is a liability contracted against movable property, e.g. watch, electronics, jewelry. It is granted for a short period of time, usually 30 days. At the time of the pledge, the pawnshop is obliged to keep the received item in appropriate conditions, so that after the deadline it can return intact to its owner.
  • Social loan – the contract is concluded between private persons, without the intermediary of non-banking institutions. Special social platforms play this role, bringing together people in need of loans with people who are willing to make such a commitment. These types of websites provide appropriate tools that enable and facilitate such a transaction, and help recover funds in the event of non-repayment.

Non-bank loans granted via the internet can only be taken by adults. Some financial institutions set their own age limits. Usually the borrower is required to be at least 20 years old.

Differences between a loan and a non-bank loan

Differences between a loan and a non-bank loan

A non-bank installment loan can be compared in several respects to a loan, namely in the amount and repayment date. However, the inference process is different in both cases. An installment non-bank loan can be taken without meeting strict requirements. You also do not need to fill in complicated formal documents and specify the purpose for which you intend to use the money borrowed.

To make a commitment at the bank, the institution assesses the creditworthiness and creditworthiness of the person applying for the loan. The first one is assessed taking into account the amount of income, costs of monthly maintenance as well as education and occupation. To determine credibility, credit history is taken into account. In addition, the applicant must have an ID card and home address in Poland.

As for the liabilities granted by non-bank institutions, usually a valid ID card, having a source of income and address of residence in Poland are sufficient. Depending on the loan company, your credit history is checked or not.

Loans taken out of non-bank institutions without many formalities are a sure guarantee in the event of sudden and unforeseen expenses. Before choosing a loan company, it is worth getting a handful of information about this institution and checking the reviews, as well as carefully read the terms of the contract.

Securing interest with forward loans


The fixed interest period runs for a few more years, but the current interest rates are very cheap and lower than the current loan interest rate. Secure the interest with a forward loan, this is possible even before the fixed interest period expires. Many banks offer such forward loans up to 5 years before the fixed interest period expires.

Secure interest with forward loans

Secure interest with forward loans

You can save a lot of money with the forward loan.

Forward loan: how it works

  • You are already applying for the loan for follow-up financing (forward loan)
  • In this way, you secure the current interest rate for follow-up financing
  • The forward loan is paid out when the fixed interest period expires. As a rule, the existing loan is repaid
  • The new fixed interest rate begins from the time the forward loan is paid out. Only then does the monthly payment in installments begin

Advantages of the forward loan

  • You secure the current interest rate level, the risk of rising interest rates will be eliminated in the future
  • There is no prepayment penalty for early loan repayment
  • You get planning security for the future, because the rate and the future interest rate are already fixed today

What is important?

What is important?

The following peculiarity applies when setting the interest rate for the forward loan.

  • In addition to the current interest rate, a small interest premium is taken into account for each month
  • The interest rate is therefore slightly above the current interest rate. The shorter the time until the loan is paid out, the lower the interest premium
  • If interest rates fall later, they have to accept the forward loan.
  • The forward loan is very advantageous in periods of low interest rates

Application process for the forward loan

Application process for the forward loan

In order to secure the interest with a forward loan, the application for the forward loan is made to a bank. If it is replaced by a third-party bank, cheaper interest offers may be the case.

Independent credit brokers in particular can offer the cheapest offer from a variety of banks.

The process is as follows:

  • Applying for a forward loan
  • Credit check by the bank
  • Agreement on future interest and monthly installments
  • Definition of the new fixed interest period
  • Payment of the forward loan upon expiry of the fixed interest rate on the existing loan.

Securing interest with a forward loan is the advantage of a forward loan. You can save interest and have planning security.