How do loans with a guarantee work?

The guarantees in the cash loan offer relate to various parameters. Honest Bank and Agree Bank “outperform” the installments proposed by the competition.

Promotional guarantee may contribute to interest rates reduction

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The Honest Bank promotional guarantee may contribute to interest rates reduction. The most interesting option was provided by Good Finance. Within two weeks of signing the contract, the bank reduced the cost of credit to a value lower than that proposed by a competing institution (see the table below).

Promotional guarantee may contribute to interest rates reduction

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Persons using credit guarantees must submit documents prepared by another bank (e.g. promise, information form or draft contract). Guarantee lenders require that the installment, total cost or interest calculations relate to liability with the same parameters (the amount and length of the repayment period are checked).

It is worth mentioning that two banks (Honest Bank and Good Finance) will significantly lower the interest rate (below 9.00% or 8.40%) if the client presents an agreement with a competing Institution.

Presentation of the guarantees that domestic banks offer under cash loans

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name of the bank   The name of the product to which the warranty applies The parameter covered by the warranty Rules for obtaining a guarantee  
Honest Bank Cash loan / Consolidation loan loan installment Honest Bank offers the client an installment lower than the calculation proposed by another bank. One installment reduction is made by reducing the interest rate. A customer who, after signing the loan agreement with Alior, receives a more favorable proposal, must provide the competitive bank’s information form (with the same amount of cash loan, equal installments and the same repayment period). If the implementation of the guarantee requires a reduction of the interest rate to a value lower than 9.00%, the customer must first submit a loan agreement, which should be signed with a competing bank.

 
Good Finance   Cash loan total cost of credit The guarantee promotion lasts until March 31, 2014. It can be attended by persons who have borrowed from USD 20,000 to USD 150,000 for a period of 6 – 60 months. Good Finance will reduce the total cost of the loan to a value lower than that proposed by another bank (for the same amount, currency and length of the loan period). The credit cost reduction is one-off. A customer who, after signing the contract with Good Finance, receives a more favorable proposal within two weeks must submit:

  • an agreement with another bank
  • draft contract initialed by an employee of a competitive bank
  • loan promise with the signature of a competitor’s bank employee

If the guarantee requires a reduction of the interest rate to a value lower than 8.40%, the customer must first submit a loan agreement, which should be signed with a competing bank.

 
Agree Bank   A consolidation cash loan loan installment The guarantee promotion lasts until March 31, 2014. Agree Bank offers the client an installment lower than the calculation proposed by another bank. A customer who, before signing the contract with Agree Bank, receives a more favorable offer, must provide the competitive bank’s information form (with the same amount of cash loan and the same repayment period and installment type).

 
Honest Bank   Cash loan interest The one-time warranty promotion runs until March 31, 2014. It can be used within 30 days of the loan agreement. Honest Bank offers the client an interest rate lower than the calculation proposed by another bank. A customer who, after signing the contract with Honest , receives a more favorable offer, must provide the competitive bank’s information form (with the same amount of cash loan and the same repayment period). After the warranty has been applied, the customer will receive a refund of interest accrued at the higher interest rate.  

Do you need cash, but you want a guarantee that the amount of the installment or costs will not change during the repayment period?

Check the loan with the guarantee of the lowest total cost of the loan. All you have to do is fill out the application and the adviser of the Good Finance bank will contact you and present an individually selected offer. 

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