Despite the fact that the situation of our countrymen has improved – mostly thanks to the 500 plus program, Poles are still looking for better earnings abroad. As you know, foreign currency loans have enjoyed popularity and are still quite popular today, although the swirls with loans in Swift frencs have caused a lot of hiccups on the financial market.
Many Poles terrified and troubled the sudden increase in installments in Swift frencs. Therefore, 3 years ago, Recommendation S was introduced, which says that people working in Poland and having income in dollars should receive loans only in our native currency. Unfortunately, this is troublesome, especially for Poles working abroad.
Foreign currency loans
Unfortunately, with a candle we can look for foreign currency loans in euros, pounds or Norwegian kroner, and yet many of our countrymen work and earn in these countries. Unfortunately, all this is the result of the introduction of Recommendation S, which required banks to oblige them to offer loans to Poles only in USD.
However, Poles earning in foreign currency are not at a loss. The easiest way is to get a loan in one of the European currencies. Unfortunately, what’s next – the harder it is. Someone who is applying for a loan in euros should not have trouble getting it. Banks offering foreign currency loans set different requirements.
Employment in a company with a branch in Poland, employment under a contract of employment, worked for several months may be required. The same applies to mortgages. If we are Poles and we earn well and are interested in a mortgage, we should be interested in the offer of Alion Bank or Dairyshare Bank.
They offer mortgage loans not only in USD. Alion Bank provides loans in euros, pounds, dollars. A margin of 2.5%, decision even in one day. Dairyshare Bank offers housing loans in euros and pounds.
Pros and cons of foreign currency loans
As you can see on the example of loans taken in Swift frencs, the cost of the loan depends on the exchange rate in which it is incurred. Unfortunately, currency loans are more expensive than loans taken in dollars, mainly because:
- We have a limited offer
- More formalities than with a USD loan
Other disadvantages of foreign currency loans include the need to provide the bank with documents translated by a sworn translator, such as: income certificate, bank statement or our pit. It is necessary to show our credit history if loans were taken abroad.
Procedures may require appearing several times in a bank branch, hence this should be taken into account when working outside the country. Therefore, if you plan to apply for a foreign currency loan, it is best to familiarize yourself in advance with the requirements set by the bank so as not to expose you to unnecessary stress and a waste of time.
Non-bank loans for employees working abroad
Another, undoubtedly interesting solution for people who work abroad is to take a quick non-bank loan. It is worth remembering that non-bank loan companies usually don’t get to where our income comes from. Working abroad, we can conclude a typical payday contract for thirty days, and take out a non-bank loan with an installment repayment system.
Usually, up to the amount of $ 10,000, no non-bank loan company will want from us either a salary certificate, or even less a confirmation of employment.