Loans and credit — glossary

Access to banking services via electronic channels, primarily the website and mobile application. It allows, among others: check your balance, download documents, make transfers and manage some of your products.

In practice: The scope of functions and fees depend on the bank. Use the correct domain or official app, keep your device updated and control approved operations. Logging in to banking, agreeing to access account information, and authorizing payments are different steps.

A short-term loan, usually repaid in one lump sum on a set date. The application can often be submitted online, and the formalities required depend on the company and credit score.

In practice: Not every payday loan is free or granted for 30 days. Check the specific date, the total amount to be paid and the conditions of any promotion. With a one-time repayment, you must collect the entire amount due on one day.

Possibility to use funds exceeding your own account balance, within the granted limit. The resulting debt is subject to the repayment rules specified by the bank.

In practice: A contractual overdraft is different from a prohibited overdraft. Check the interest rate on the amount used, the fee for providing the limit and its renewal date. Inflows into the account can automatically reduce your debt.

A payment instrument that allows you to use the limit granted by the issuer. The funds spent create debt that must be repaid in accordance with the billing cycle and the terms of the contract.

In practice: The interest-free period does not have to cover every transaction. Cash withdrawals, transfers and additional services may be billed differently. Check your full statement repayment, minimum repayment, card fees and limit renewal terms.

Financing provided under the terms of an agreement that specifies, among other things, amount, terms of use, interest rate and repayment dates. Bank loans are granted as part of banking activities.

In practice: In legal terms, consumer credit is a broader category and may also include non-bank loans. When comparing products, actual costs, requirements and obligations arising from the contract are more important than the advertising name.

A loan whose amount in the contract is expressed in a foreign currency, although the payment may be made in Polish zloty.

Conversion into the payment currency takes place under the terms of the contract. The value of the PLN withdrawn and the amount of repayments may depend on currency exchange rates.

In practice: Compare the amount in the contract with the amount actually paid and the repayment terms.

Source: Financial Ombudsman - foreign currency loans.

A banking product usually intended for consumer needs indicated generally or in accordance with the terms of the contract. It is usually repaid in principal and interest installments.

In practice: Check the commission, insurance, type of interest and amount received on the account. Not every offer with a low installment is cheaper. Compare the same capital, period and early repayment conditions.

Long-term financing related to real estate, usually secured by a mortgage. It may be used, for example, to purchase an apartment, build a house or another purpose provided for in the contract.

In practice: In addition to installments, include the required down payment, appraisal, insurance and security fees. Check the type of interest rate and conditions after the end of the fixed rate period. Separate regulations apply to such contracts.

A loan in which the amount specified in PLN is converted into the selected currency according to the rules specified in the agreement.

The exchange rate then affects the settlement of debt and installments. The details depend on the documents; the term itself does not determine the compliance of individual provisions with the law.

In practice: Check the currency of the loan amount, conversion rules and exchange rate risk.

Source: Financial Ombudsman - foreign currency loans.

Postponement of payment for goods or services by the seller. The buyer receives the benefit earlier and pays at a later date specified on the invoice or in the contract.

In practice: This is a common solution in business transactions. Terms may include purchase limit, security and consequences of delay. Compare the price for deferred payment with the price for immediate payment, especially if a discount is provided.

Financing in the form of a limit that can be used multiple times during the term of the contract. Repayment of debt restores the available amount to the extent specified by the lender.

In practice: Interest may depend on the amount actually used and the number of days. Check the fee for granting or renewing the limit separately. Renewability does not mean there is no end date or repayment obligation.

Loan intended for the purchase of a vehicle indicated in the contract. The security may be the right to a car, an insurance policy or other instruments required by the financing institution.

In practice: Check vehicle age, insurance and sales restrictions before paying off. Compare the full cost with a cash loan. A low installment may result from a high down payment or a large payment at the end of the contract.

Consumer credit related to the purchase of a specific good or service on the terms specified in the Act.

What matters is the manner of concluding and the relationship between the two contracts, not the name of the financing itself. Such a link may give the consumer additional rights vis-à-vis the lender.

In practice: When purchasing in installments, determine whether the financing is a bundled loan.

Source: UOKiK - tied loans.

An agreement that allows the use of something, such as a car or equipment, in exchange for agreed fees. The ownership of the item remains with the financing party on the terms provided for in the contract.

In practice: Redemption does not have to be automatic or available on identical terms in every product. Compare upfront fee, installments, insurance, completion cost and early termination policy. Leasing is not simply a loan of money.

The maximum amount of debt made available in a specific product. The available limit may be lower than the granted limit if some of the funds have already been used or blocked.

In practice: The limit is the possibility of debt, not your own savings. You don't have to use the entire amount. The bank may take into account the granted limits in subsequent applications, even if they are not fully used at a given time.

A common name for a loan for a relatively small amount. There is no common amount or repayment date that would define all products advertised in this way.

In practice: A small amount does not mean a small cost in relation to the borrowed capital. Check the total amount due, minimum fees and repayment method. Judge the product based on the terms of the contract, not the term "micro" alone.

Statutory financing secured by real estate, in which the payment of funds and settlement of debt have a special structure. The borrower remains the owner of the property, and the rules for later repayment are determined by the regulations and the contract.

In practice: It should not be equated with an annuity in exchange for the transfer of ownership. The mere presence of regulations does not mean that the product is available in every bank. When analyzing the offer, check the owner's obligations, costs and method of settlement with the heirs.

The period of time for which financing is made available and within which it is to be repaid in accordance with the contract. It may be specified in days, months or years.

In practice: Extending the period often reduces the installment, but may increase the total costs. When comparing offers, use the same amount and similar time. In a revolving product, distinguish the contract period from the repayment date of a specific statement.

The ability to pay for your purchase at a later date, sometimes referred to as BNPL. Depending on its structure and regulations, it may be a form of consumer financing.

In practice: The absence of a fee for timely repayment does not mean the absence of an obligation. Control your purchase total and deadlines. Check the effects of paying in installments, delays and returning the goods to the seller.

An agreement in which the lender provides a specific amount of money or items specified as to their type, and the borrower undertakes to return the appropriate amount. On the website, we mainly discuss money loans.

In practice: The loan may be paid or free of charge. The customer protection rules depend on, among others: on the parties, purpose and type of contract. Before signing, determine the amount you will actually receive, the total costs and repayment dates.

An advertising term suggesting failure to check a specific BIK database. It does not determine whether the company analyzes other databases or may require additional financial data.

In practice: The institution has responsibilities regarding capacity and risk assessment. The slogan itself does not guarantee a positive decision for a person with arrears. Read the verification information and do not apply solely based on the advertising slogan.

An offer that does not always require a certificate from the employer. Income and financial situation may be checked in other ways, e.g. based on a statement or bank details.

In practice: It does not mean a loan without income or verification. The company may ask for additional information if it is needed for the assessment. Check the requirements for your own source of income and the conditions presented after analyzing the application.

A special type of loan linked to pawnshop security, covered by separate regulations in relation to the consumer. In practice, it concerns a specific item and its value.

In practice: Check the entrepreneur's details, pricing, cost and rules for returning items after repayment. Do not equate every secured loan with a pawnshop agreement. The actual provisions regarding the collateral and its settlement are important.

Financing that is applied for remotely via the website or application. Confirming data, signing documents and making payments can take place without visiting a branch.

In practice: An application available 24 hours a day does not guarantee an immediate decision or transfer every day. What matters are company procedures and bank settlements. Download documents and check with the actual lender before accepting.

Financing secured by a specific object or right. In the event of failure to repay the obligation, the creditor may seek satisfaction from the security in accordance with the applicable contract and regulations.

In practice: Do not confuse a movable property pledge with a real estate mortgage. Separate rules apply to consumer pawn loans. Check the valuation of the item, storage costs and the procedure for sale and settlement after the deadline.

A loan granted by a person or entity outside the typical banking offer. The scope of protection and obligations depends on, among others: depending on whether the lender acts as an entrepreneur and who concludes the contract.

In practice: Document the transfer of money, timing and costs. When financing between private individuals, there may be tax issues and different rules than in consumer credit. Don't sign vague collateral just for the promise of payment.

A loan repaid in several or more payments according to a set schedule. It may be granted by a bank or a non-bank entity on various cost principles.

In practice: A longer period often makes it easier to fit the installment into your budget, but may increase the total costs. Compare the total amount due, not just the installment. Check the possibility of overpayment and the consequences of delay.

The party to the contract who receives the loan and is obliged to return the benefit under the agreed terms. In the case of paid financing, it also repays the costs due.

In practice: The borrower should provide true information in the application and observe the deadlines. His rights depend on the type of contract and the consumer's status. A co-borrower or guarantor may be liable on a different basis, which should be checked separately.

The party to the contract that makes money available to the borrower and is entitled to its return. It may be an entity other than the website operator, comparison website or intermediary collecting the application.

In practice: Before accepting documents, please check the full name, registration details and contact details. Proper identification of the parties to the contract is important for repayment, withdrawal and complaints. The brand logo does not always correspond to the creditor's legal name.

In real estate offers, the definition of benefits paid for life in exchange for agreed rights, often related to the transfer of ownership. The actual construction and security measures must be determined from the content of the documents.

In practice: It is not automatically a loan or a uniform type of contract. It may involve the loss of property while still alive, while maintaining a certain right to housing. Check security entries, contractor's liability and the situation in the event of cessation of payments.

A savings and checking account used for everyday payments, receiving wages, and making transfers. It can be linked to a debit card and other bank services.

In practice: Maintaining an account does not automatically mean having a credit limit. Check fees, commission waivers and costs of related services. In the case of a loan, your own account number may be used to withdraw funds and confirm data.

Determining the method of submitting instructions or applications via SMS. It is usually associated with a previously registered and verified customer of a specific company.

In practice: SMS does not replace information obligations or assessment required by law. Check the recipient's number, the cost of the message and the moment of concluding the contract. Don't respond to random messages promising a loan after paying an initial fee.

Social lending, in which the platform matches people or entities seeking financing with those providing funds. The legal model and the role of the operator depend on the specific website.

In practice: It is not automatically a bank loan or a bank-protected deposit. Check the contract page, security and liability of the platform. The borrower bears the risk of default and the borrower should check the full costs and settlement terms.

Payment made without transferring physical cash, e.g. by card, transfer or in-app payment instrument. The specific classification rules depend on the product and the regulations.

In practice: In a credit card, not every operation is treated as an ordinary purchase. ATM withdrawals, transfers or cash-like operations may have different fees. Check which transactions are covered by the interest-free period.