The financial products market in Poland is saturated primarily with the offers of banking institutions. They provide customers with access to loans that can be used for a variety of purposes. There are many banks, so customers can easily select offers. Of course, every reasonable borrower is interested in the lowest interest rate on cash loans.
The interest rate is nothing else but the amount of interest repaid to the bank together with the borrowed capital. They constitute the main earnings of banks and the lower the value of such interest, the cheaper the loan should be. However, it turns out that in many cases low interest does not necessarily mean the cheapest and the most advantageous loan. See what else is worth knowing about the interest rate on cash loans.
We should remember about additional fees
Many banks advertise their offers by tempting customers with low interest rates on loans. It is associated with a low amount of interest paid under monthly installments. Many customers pay attention to the lowest interest rate on cash loans, forgetting that banks also apply many additional fees. In addition to interest, banking institutions require their clients to pay commissions, application fees, compulsory insurance, etc. Very often, these additional fees significantly increase the cost of the loan and its monthly installment. However, there is a parameter to look out for. If you want to know exactly how much your loan’s monthly installment will be, check the loan installment calculator.
RSO and APRC – how to find the lowest interest rate on a cash loan
Many customers pay attention only to RSO, ie the annual interest rate. However, it should be remembered that banks are required to provide information in the APRC contracts, ie the current annual interest rate. In advertisements, this value is usually written in a small print. It includes not only interest, but also all additional fees mentioned above. So if someone is looking for the lowest interest rate on a loan, then such a person should pay attention to the APRC and compare offers in this respect. The lower its percentage, the more profitable the bank has.
How to search for the best offers?
The best tool for looking for banking offers with a low APRC is the internet. There are many websites with credit rankings and calculators on the network that allow you to compare APRC of many offers without having to study the offers in specific banks. No one should have major problems finding a good comparison or ranking. Just use the internet search engine to find useful addresses after a few seconds. Also use the consumer credit ranking.