Bank loans are among the most popular financial products. Banks grant them a lot, both to individuals and enterprises. What types of loans can the average take?

Loans that we use most often


What is a bank loan? You don’t need to explain it to anyone. The bank provides us with a certain amount of money, and we undertake to pay it back within the prescribed period – plus commission and interest. What types of loans are the most common and what are their characteristics?

Cash loan

It is a cash loan for any purpose. It is the most popular banking product and, unfortunately, also the most expensive one. In this case, the loan period is usually short – from one to two years, although it can even last for several years.

The basis for granting such a loan is the customer’s creditworthiness. Cash loans are usually highly interest-bearing. How much interest rate on loans in the most popular banks is, you can find out from our cash loan comparison website.

Installment loan

This is a type of loan intended for the purchase of consumer goods, durable household goods (e.g. household appliances, electronics, furniture) and cars. We purchase goods in the store, where all formalities related to the purchase of installments are handled.

Credit on a personal account

Otherwise, a loan in a savings and checking account. We deal with it when the bank allows us to withdraw more funds than we currently have on the account. In other words, the bank simply gives us the option of overdraft. The amount of such a loan depends on the client’s income and credibility. However, it should be remembered that overdraft is usually highly interest-bearing.

Consumer loan

This is a bank loan for specific needs. Its security is most often the debtor’s income, but also the surety of third parties. Its repayment depends on the contracts signed. They can be divided into cash and non-cash loans. Consumer credit is usually expensive, and in addition to interest, we must include high additional charges in its cost.

Special purpose loans

Special purpose loans

Banks grant certain loans for a specific purpose. They are very popular because they allow us to buy your dream apartment or vehicle. Then, however, apart from the fact that we are obliged to pay back the debt on time, we are also required to spend the money incurred for a specific purpose – the one for which we received the loan.

Car loan

Otherwise automotive loan. It is a loan granted for the purchase of a vehicle, new or used. Most often we take it to buy a car, but it can also apply to a number of other vehicles: motorcycles, scooters, caravans, construction machinery, tractors or even motor boats. The vehicle must have a valid registration document. Usually the loan is secured by the vehicle for which it was granted. Banks also require collateral in the form of buying AC policy and renewing it for the entire duration of the loan.

A car loan usually has a slightly lower interest rate than cash, and the contract is concluded for a period shorter than 5 years.

Such a loan allows us to buy the dream vehicle, but we must remember that until we pay the debt, we cannot freely dispose of our vehicle and, for example, sell it.


It is granted for the purchase of real estate (houses, flats or plots), as well as for financing construction or renovation.

This is a long-term loan with the most favorable interest rate. All because its collateral is a mortgage. The mortgage is created by entering into the land and mortgage register of the property. This entry records the load on the property. Thanks to this, if the debtor does not repay the loan, the bank may assert its rights by selling the property.

Loans on special terms


Some loans have much better conditions than market ones. However, not everyone has the right to apply for it. What are our distinctions, their purpose and who has the right to them?

Preferential loan

It is a loan that is granted on much more favorable terms than market ones. It is addressed to specific groups. Favorable conditions may include both the interest rate, repayment schedule and required collateral. The difference is covered by the state. The purpose of such a loan is therefore to stimulate specific sectors of the economy, including households.

Examples of preferential loans are loans for young people for the purchase of an apartment, student loans or loans for farmers for the modernization of a farm. Therefore, to obtain a preferential loan, additional conditions must be met.

Student loan

It is granted to every student or doctoral student regardless of the university he is studying at. It includes both public and private university students. The basic condition for obtaining it is starting studies before the age of 25.

It is paid in ten tranches in an academic year, throughout the entire period of study, unless it is interrupted. The loan repayment begins two years after graduation. In the event of a difficult life situation, the loan may be written off in whole or in part. It is also redeemed by 20% of students who complete their studies in a group of 5% of the best graduates.

Student loans are granted by commercial banks with an interest rate subsidy from the state budget (the interest rate is half of the rediscount rate of the National Bank of Poland).

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