Poland is an increasingly attractive place for economic immigrants. Until recently, foreigners had virtually no way to take out cash loans. It is much easier now.
The number of foreigners deciding to live in Poland is consistently growing. Most of them come from across the eastern border. According to the data of the Supreme Audit Office, in the years 2014–2018 910,000 were filed. applications for a work permit. In the same period, employers employed foreigners a total of 5.8 million times. Increasingly, the goal of immigrants is not only the labor market, but also life in Poland.
The Office for Foreigners reports that at present over 400,000 long-term residence permits foreigners, more than half of them are Ukrainians. Being legally resident in Poland does not always mean, however, that you have equal rights to access certain services, including loans offered by banks. To be able to use them, they must first of all meet certain formal requirements.
Cash loan for non foreigner
Only a few years ago a foreigner from outside the European Union who wanted to apply for a cash loan in Poland had to first obtain citizenship in practice. Now this situation has changed. Most banks will require customers to submit:
- Permanent residence cards or temporary residence permits;
- A valid passport and visa;
- Reporting in Poland;
- Optional – PESEL number.
People with a temporary residence permit may encounter problems finding an institution that decides to grant them funding. However, this is not impossible: ultimately, each case is considered individually. It is therefore possible that in the case of short-term loans the bank’s decision will be positive. Many institutions also require their clients to document at least one year’s stay in Poland.
Loans for EU citizens
The situation is different for European Union citizens residing in another Member State. Under the directives, the institutions cannot discriminate against EU residents on the basis of their citizenship. However, banks have the right to refuse if the borrower’s life center is located outside the country where the bank’s head office is located. Certain problems may also be related to the calculation of creditworthiness when obtaining income in a currency other than the one in which the loan is to be granted, and requesting the payment of funds in a foreign currency.
Procedure and conditions unchanged
Formal issues regarding the right of residence of a foreigner on Polish territory are not enough. The further procedure is no different from the one Polish citizens will have to go through. Its most important elements are the assessment of creditworthiness and customer credibility. For the former, the most valuable document will be a permanent employment contract.
However, more and more banks grant loans to people working on the basis of civil law contracts, and the same policy also applies to cash loans for foreigners. The conditions for granting the loan do not change – immigrants who meet the formal requirements can count on obtaining the same financing as Polish citizens.
Assessment of credibility with a cash loan for a foreigner
Greater problems are associated with the assessment of the credibility of a customer from outside the European Union. As a standard, banks in the case of Polish citizens use data collected in the databases of the Credit Information Bureau (BIK) and the Economic Information Bureau (BIG). Both institutions cooperate with their counterparts in some countries (including Ukraine), but they may have a problem verifying the citizens of other countries. In this case, bank employees may ask, for example, to provide a credit report generated by the appropriate institution – so make sure that it looks its best. Equally important will be the period spent in Poland.
A foreigner who is thinking about staying with the country he has come to for a long time and wants to take out cash loans and other financial obligations should start building a positive credit history as soon as possible. The first step will be to set up a savings and settlement account (ROR), which over time should be enriched with a debit or use the credit card offered by the bank. Both an active account and regularly paid debts will be arguments in favor of the client for analysts. In practice, diligent handling of all types of financial obligations are valuable entries in the BIK and BIG databases, and thus also a greater chance of obtaining a positive credit decision.
Cash loan for foreigners – it’s possible
Although it was difficult until recently, foreigners without Polish citizenship can apply for a cash loan in most banks on the same terms as Poles. The condition of the institution, however, is having a permanent residence card or temporary residence permit and a report.
Some banks may also request a PESEL number. Certain problems may be related to the assessment of customer credibility. Analysts will want to verify the borrower’s full history – both built in Poland and in the homeland. When applying for a cash loan for a foreigner, it is worth thinking about shaping your financial habits properly. It should also be taken into account that in some cases it will be necessary to provide additional documents.