Credits for consumption or investments?

One of the biggest problems for borrowers is how to spend extra money from the loan. Many loans are entirely spent on consumption and many loans on long-term investments. How is it worth considering cash loans in terms of investment and typically consumption to get the maximum benefits from signing the contract?

Mortgage interest


Investment loan is a popular category in the country. Just look at the statistics on your mortgage interest. Thanks to mortgages, you invest in real estate for the whole family, often passed down from generation to generation.

Unfortunately, the investment loan charges the household budget much more for years than a typical consumer loan, but you have real value. Many properties or investments gain value over time, which not only allows you to pay off your loan faster, but also to generate solid profits. Through this approach, credit becomes a kind of financial leverage enabling the use of solid opportunities.

Consumer cash loans


Investment loans are the domain of entrepreneurial people, mainly men. Women prefer consumer cash loans for shorter periods. If you take out investment loans, get ready to bring collateral, including property valuation. You pay for the quote yourself, before you enter collateral into the contract.

Credit for consumption is the most popular category in low and medium earning households. According to the statistics of the Central Statistical Office, the most frequently paid salary is 1500 – 1800 PLN net (per hand). Consumer loans are therefore often the only rescue for borrowers in the country to meet the needs in times of crisis. Specialist treatment, major repairs, and car purchases are just some of the most important examples.

Ease of obtaining additional capital


Ladies dominate in consumer loans due to the ease of obtaining additional capital without special contract collateral. Consumer credit is a chance to meet various needs, not only in critical situations, without a large, long-term burden on the household budget.

It can be said that investment loans are usually long-term loans. Whereas consumer loans are short-term products. It is best to take investment loans at retail banks and consumer loan companies due to the institution’s specialization and the stability of the retail banking sector. What do you mainly use loans for?