The desire to take loans in foreign currencies is still not passing away and there is no sign that anything will change in the near future. Although the law on this type of loan was changed a few years ago, people’s willingness to borrow in other currencies has not changed. A loan in euros has many advantages that loans in Polish zlotys do not have. What are the advantages and exactly what the whole procedure looks like, which you have to deal with to get a loan in euros?
Get a loan in euros
Current European law says that to get a loan in euros, you must earn in this currency. This means that you must receive your regular source of income in euros instead of in zlotys.
Earning in Poland, the payout is usually paid in your native currency, so as you can see, this right can be somewhat restrictive. However, these restrictions work both ways. For example, Poles working in France or the Netherlands can no longer take loans in PLN. It is for them that it is possible to take a loan in euros.
This law protects against fluctuations in the currency’s exchange rate. A few years ago, people who took out a loan in Swiss francs on their own skin felt the negative effects that taking loans in foreign currency can have. The currency fluctuations meant that the monthly loan installments could increase to really incredible amounts that someone who earned in PLN could not afford. Therefore, the new law is a step in the right direction, because it avoids unnecessary financial risk and subsequent crises.
The next thing that you need to pay attention to when deciding to take a loan in euros is, of course, whether we have enough own contribution. This is usually the case for mortgages, but this is an important issue because it shows that, in addition to creditworthiness and adequate earnings, the borrower has financial resources that can ensure that the debt is repaid regularly and without any major difficulties.
The better the loan offer a bank has, the more own contribution it requires. However, it is often more profitable than accepting the very unfavorable conditions that other banks require when granting their loans. Therefore, in most cases, it is more reasonable to collect more money and present it as your own contribution, rather than focus only on reaching the lowest possible threshold and agree on poor contractual terms with the bank, which will suffer many years of debt repayment.
A loan in euros is definitely the best option for people who have the right to take it on their shoulders. European banks provide the best conditions for euro loans among all other foreign currencies. The most loans are also granted in euros, so the offer on the banking market is the most diverse and everyone has a chance to find a bank whose requirements meet its expectations.
Requirements of loan in euros
What are the formal requirements to be met when taking a loan in euros? Well, the basic one is certainly a translated statement of earnings, on the basis of which you will be able to confirm your monthly income and prove that you are able to cover the monthly installments for the loan. Such statement must be fully official, which means that it must be translated by a sworn translator.
Another document needed for the procedure of finalizing a loan in euros is definitely the credit history from the country of emigration. It helps ensure the bank that you are a good candidate for credit. Thanks to this, the bank protects itself against a potential situation in which the loan could not be repaid without going to court.
In addition to the translated statement of earnings and credit history, it is also important to provide a bank statement from your account or to show a tax return. Like other documents, this one is intended to assure the bank that the financial past is devoid of any difficulties that could affect the repayment of the loan.
Therefore, if anyone wants to take out a loan in euros, they must be prepared for the fact that formal procedures related to this may take some time. Equally, much time should be devoted to carefully analyzing the offers of all available banks. A loan in euros is a commitment for many years, so it is always a good idea to ensure that you avoid making mistakes and do not make this decision lightly.