The vast majority of people do not distinguish between credit and loan. Both of these products are considered to be the same product. But these are completely different products that are subject to different laws. What are the basic differences between them? Who can grant loans and who can grant loans?
Loans may be granted only by banks
Polish branches of foreign banks and credit institutions. The loans always bear interest and the rules for granting them are laid down in the banking law. The subject of the loan can only be money. When granting the loan, the borrower and the lender must write an appropriate agreement, which will specify the loan period, the amount of the loan granted and the rules for its repayment. The condition necessary to obtain a loan is borrower’s creditworthiness.
Loan can be provided by institutions and natural persons
Therefore, each of us can take care of borrowing. An important difference between a loan and a loan is the item. As already mentioned, the subject of the loan can only be money, and the subject of the loan is not only money, but also certain items. If the subject of the loan is money, the person who borrows it does not have to specify what he intends to spend it on. The rules for granting loans are governed by the Civil Code. When deciding on a loan, we do not need to draw up a written agreement with the lender. Signing the contract is recommended only if the loan value exceeds five hundred dollars. The loan may bear interest. In this case, the interest rate is regulated by the anti-usury act in force in our country. Remember, however, that there are institutions that grant loans in breach of this law. They take advantage of loopholes in the law, apply high interest rates, and yet it is difficult for them to prove that they broke the anti-usury act.
Remember that a loan granted by a bank is less risky for the borrower than a loan. Banks do not decide to violate the anti-usury act.