Often, the time of receiving a credit decision and withdrawing money is a factor that determines whether we will sign a contract with a given lender or choose an offer from competitors.
The speed with which formalities are completed, along with the interest rate, is also the bargaining chip of financial institutions – this is where the greatest competition takes place.
They are aware that it is very easy to lose an impatient client. What is the standard waiting time for a credit decision? Is it longer in the case of a mortgage? Let’s check it.
For a credit decision and the amount of the liability – the loan sector
The loan sector has slightly different laws than the banking sector. It allows you to borrow money, but the amounts offered are much lower than for banks. The formalities are much faster. Typical payday loans involve a loan in the range from PLN 100 to 5000. Some lenders offer their clients higher amounts of PLN 10,000, however, repayment of such liability within 30 or 60 days involves high risk. This amount can be found in almost every installment loan offer. It is also worth mentioning that in some companies the maximum amount reaches even 15,000 or 25,000 PLN. InCredit offers the highest amount – PLN 35,000.
For both offers, we must be aware that our loan will usually have a higher interest rate than a bank loan. This price is not only for the accelerated mode of processing applications and withdrawing money. We also pay more because parabank customers have problems paying back their liabilities more often than bank customers, so the company must do everything to protect its interests and maintain financial liquidity at a constant level. Meanwhile, unlikely borrowers are unlikely to give up their attempts to apply for financial assistance in parabanks.
The vision of getting through the procedures and receiving money in a quarter is (and still will be) too tempting. It is also worth paying attention to the promotional offers of lenders, then we can have a chance for lower commitment costs. Let’s not forget that in the case of the first application for payday loans we have a chance to take out a loan for free. It guarantees that we will not incur any fees. We pay exactly as much as we borrowed.
The waiting time for a credit decision when applying online
Many clients of financial institutions believe that applying for a loan via the Internet significantly speeds up the whole process. And they are right. Just going to a bank branch or a company takes a lot of time, and yet you still have to stand in a queue to the consultant, fill out documents and wait for the loan decision. Let’s not be surprised if this whole process takes us over a week. Few people can afford such a waste of time, which is why we are increasingly choosing online loans. Let’s remember, however, that this option is possible in the case of cash loans – it won’t be so easy with a mortgage loan. The necessity of personal appearance in a bank branch will not pass us by anyway.
However, if you are interested in an online cash loan, even a bank loan, you don’t have to worry about the long wait. Lenders quickly verify that their potential client is a reliable person able to bear the financial commitment. However, for banks it is not possible to define a specific waiting time, because in some situations the loan granting process can be more complicated. If most of the information does not require additional verification, then we can expect an hour of waiting for a decision.
How long does it take to get a mortgage?
Just making a decision to take a mortgage can be stressful, after all it is a serious and long-term commitment. It can also cost us a lot of nerves to wait for a bank decision or whether we deserve such proof of trust. Before we get impatient, it is worth remembering that credit processes, especially if they involve larger amounts, as in a mortgage loan, often take place in two stages. For us, this means that we will first receive the initial decision from the lender, and after analyzing all the documents – the final one.
Obtaining an initial decision is associated with a waiting time of up to 2 weeks, and we will have to wait for the final decision. It is interesting because according to the law, banks have 21 days to grant a credit decision (also in the case of a one-step procedure, during which we immediately get the final decision).
This is stated in the Act on Mortgage Loan and Supervision of Mortgage Brokers and Agents (Journal of Laws 2017 item 819), which entered into force in 2017. As you can see, in practice this period is longer. Consolation can be information that the final decision is rarely different than the initial one, so after we receive the first one, we can start planning further steps.