Loan with collateral – is it worth it?

Receiving a given product at a lower price will certainly please us. In the case of cash loans, our joy will be double. So how do you reduce the cost of our loan? Which of its elements are subject to any negotiations? We invite you to read!

Ways to get a cheaper loan …


There are many legal options to lower your monthly credit obligations. These include, among others:

  • Consolidation, i.e. combining repaid loans into one,
  • Transferring the invoice with the proceeds received, thanks to which it will be possible to take advantage of the conditions as for regular customers (reduced commission and/or interest rate),
  • The use of guarantees with the offer, e.g. the Lowest Installment Guarantee at Alior Bank or the Lowest Interest Rate Guarantee at Fine Bank – which will reduce the price conditions received in another institution,
  • Selecting a special offer – most often, however, contains additional criteria that must be met to use it, e.g. the purchase of an additional product.

In addition, it is also possible to take out a loan with security. Is it a viable solution? What can be the subject of collateral? We checked!

Secured loan = cheaper loan?

Secured loan = cheaper loan?

We decided to check how much cheaper loans with established collateral will turn out to be. We also wanted to ensure that the establishment of repayment collateral was not in itself a complicated occupation and did not generate unnecessary costs.
Below is a comparison of loans with repayment collateral established.

What can be a collateral?


To take advantage of a secured loan offer, it is sufficient, for example, to place a block on a term deposit kept by the bank where you want to take out a loan.

Unfortunately, the catalog of security measures that can be used is quite limited. Most often it is based on ordinary bank deposits kept in the Polish currency in the amount that will allow repayment of the loan principal and interest.

Cheaper but reasonable?


The monthly installment for a secured loan is on average several dozen zlotys lower than the unsecured one. This is not a small amount, because over the entire repayment period it can bring even several thousand lower interest.

On the other hand, for the entire duration of the loan agreement, we block our savings against the repayment guarantee, which means that any larger expenditure cannot be financed from our own funds but from the loan …

Moderate sales success …


The recent interest rate cut by the Good Finance has changed a lot. The interest rate on even the most expensive loan offers may not exceed 12% per annum, i.e. four times the interest rate of the NBP Lombard loan. It is already a relatively low-interest rate, which means that even those with secured loans are not so tempting …

From sources similar to bank analysts, we know that low nominal rates are to encourage customers to visit the branch and check the available loan offer. Product options with collateral constitute only a margin of all credit sales of banks.

Customers are not willing to freeze their savings for a longer period if they have them at all … If the loan repayment collateral in the form of a deposit lock is not our only financial cushion, then you should be interested in such a proposal. Otherwise, we are forced to pay higher installments, but without any restrictions or additional obligations.

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