Compare the best options on the market and choose the one which best adapts to your day to day needs.
Further Below: Our Guide To Loans in The Czech Republic, Everything you need to know.
- Offers both short and long term loans
- Provides loans to foreigners
- Provides big loans of up to CZK 100,000
- Has affordable interest rates of 7.69% p.a
- Has excellent financing conditions
- Has fewer commissions
- Offers long repayment periods of up to 120 months
- Available to applicants with stable income
- Provides both secured and unsecured loans
2. Česka Sporitelna
- Loans available to 18-year-olds
- Provides loans of up to CZK 80,000
- Has attractive interest rates of 5.42% p.a
- Eligible only to clients with stable income
- The conditions improve with timely reimbursements of the loan
- Loans available for a variety of purposes
- Offers loans to foreigners
- Facilitates online application
3. Komercni Banka AS
- Top financing conditions
- Offers loans at fixed rates
- Big loans of up to CZK 60,000
- Has friendly interest rates of 8.34% p.a
- Provides a variety of consumer loans
- Has online loan application and banking
- Eligible to clients with income only
- Financing conditions improve with timely repayments
Loans in the Czech Republic, All You Need To Know:
This article features all the information surrounding loans in the Czech Republic. Hang tight to get the grips of how to find money in minutes. You’ll learn how the credits work, the best offers available, and what factors affect them.
- Online mini-credits are considered short-term loans
- These loans have fast concessions
- They have fewer eligibility criteria (and do not have income requirements)
- They provide financing in minutes
- They don’t require collateral
- They are repaid in a single payment after 30 days
- They should be taken out only when the client is financially stable to repay them
What are loans and how do they work?
Loans are financial instruments that avail us of funds and require a refund later. The time of repayment is set by the lending institution among other financing conditions. In the Czech Republic, loans are regulated by the Czech National Bank to ensure the safety of both consumers and lenders.
Speaking of online mini-credits, the conditions are somewhat friendly, depending on the type of financing you require. They are designed for small financial needs and are reimbursed after a short time. The money is released to our account after a very short time (15 minutes). However, these loans are the most expensive due to their short repayment periods and high interest rates. The borrower is expected to make timely repayments to avoid penalties.
Many entities in the Czech Republic offer these loans without income or positive credit history requirements. Additionally, first applications have no fees attached.
What we should know about mini-credits
- They are designed to address specific financial needs
- They provide up to CZK 1,000
- They are mostly repaid after one month
- They have quick receipt of money to the account
- They have fixed amounts, fixed rates, and repayment time
- They are more expensive than other credits
How to safely take out a loan in the Czech Republic
According to PAQ Research, more than 30% of the households in the Czech Republic fall in the income poverty category. This percentage is increasing, showing their lack of knowledge of how to stay within the safe index while taking out loans.
We’ve rounded up the following tips to guide you through a safe and responsible way to take out loans in the Czech Republic:
- Consider the lender’s rating
Looking at the clients’ reviews of an entity’s financing services will help you to know how genuine and favorable the loans are. Avoid taking out loans that have more poor reviews than good ones no matter how attractive they seem. Pay keen attention to what the borrowers air out to avoid falling in the same trap.
- Compare the financing conditions
This applies to everything before we buy. A loan might seem good until you discover a better one. The number one factor that affects these loans is the cost. Look into all the fees and interest rates of the different options available.
- Consult about how the loan works
The research unveiled the failure of lending companies to provide enough information regarding these loans. While the loans provide all the information regarding the costs and commissions needed to be paid, only a few like Komercni Banka go ahead to explain what a client would do when unable to make timely repayments, among other eventualities.
- Take a closer look at gimmicky loans
Many lenders in the Czech Republic offer first loans for free. While this sounds attractive, these loans are known for having very high interest rates as their annual interest rates surpass 300%. This may create a debt spiral as many of the borrowers who are unable to afford the loans resort to taking even more expensive loans.
When is it advisable to apply for loans?
You want to take out a loan when it’s your last resort, no matter how attractive it seems. Below are some of the guidelines:
It is advisable to apply for mini-loans if/if not:
- You’re faced with a one-off need
- The need requires an immediate financial injection
- You can comfortably repay the loan
- You do not solicit on a regular basis
- You’re prepared for every charge
- You’re aware of all the conditions of the loan
- You’re faced with a recurrent need
- The purpose can wait for your next salary
- You feel like the loan is more expensive than you can afford
- You would like to take them out in the future
- You may not know about the future charges
- You don’t know how the loan works
If you stick to the above parameters, your borrowing experience will be less of a hassle. This is because you’ll have known when you need financing and which type of loan suits your needs.
How much money can I get with mini-credits?
Online mini-credits are a source of small amounts of money, designed to address small financial needs. This mostly applies to first-time borrowers as some lenders tend to improve the financing conditions for their old, loyal borrowers.
Up to CZK 10,000 (400 euros)
Up to CZK 20,000 (800 euros)
First-time borrowers are able to access such small amounts because these loans are unsecured. Hence, the lender wants to avoid the risk of granting big loans to a “stranger.” The conditions might not be the same for older clients as the entity has developed a relationship with them. The entity may offer bigger amounts, lower interest rates, and longer repayment periods, depending on the level of loyalty it has created with the borrower.
Requirements to access loans
As previously mentioned, online loans have fewer requirements than other types of credit. However, you want to meet all the requirements so that your application is successful.
- Be of the right age. Entities in the Czech Republic offer financing to clients as young as 18 years old. However, some have 21 years as the minimum age requirement.
- Income. While this may not be a priority requirement for first-time borrowers of online mini-credits, it is required for older clients who get bigger loans. The lender will assess your income beforehand to determine your financial abilities.
- Be a resident of the Czech Republic. This is only when the lender will feel safe providing the funds.
- Be above the income poverty line. However, this may not be greatly considered with such small loans.
While entities place lax requirements for such loans, failure to meet all of them may result in the cancellation of your application.
Documents to be submitted when requesting a loan
Since the entities require less paperwork, you’ll be required to send a few documents online.
- Valid identity card.
- Last paycheck or income received (sometimes you can ask for the last three)
- Bank statement showing the holder and the account number.
The entity may ask you to send photos, upload them via email, or scan them. Most entities use an online verification system to make the process easy and hassle-free.
How to take out loans online step by step?
Steps to contract a mini loan:
- Choose the amount and term
- Fill in the form
- Send the documentation
- Read and sign the contract
Lenders of online mini-credit are known for processing the loans in minutes after following a few steps. The process is completely online and is subdivided into 4 steps:
- Select your preferred loan amount and indicate after how long you plan to repay it.
- Receive the application form and fill it out, providing as much information as possible. Make sure that this information coincides with that in your supporting documents to avoid cancellation.
- Verification. Through an online verification system, the lender will assess our profile, financial status, and abilities to determine whether we will afford the loan or not. Moreover, the lender will look out for any conflicting data between the application form and the supporting documents.
- Read and sign the contract. The lender will send you contractual information if all goes well with the verification. Go through every single page to understand how the loan works now and in the future. Go ahead to sign up for it through digital signature if the loan seems attractive to you.
After sending back the signed contract, the entity will sign and formalize it before sending the money to your account.
About this page, our methodology
What this page is for: we’re here to help you get the best financing for your needs. Hence, through numerous research, we provide quality and easy-to-understand information about consumer credits and all you’re required to do to hire the best offer in the market.
Source: the information regarding consumer credits in the Czech Republic and their regulations has been drawn from the Czech National Bank among other reference portals.
Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.
About Us: FUDGECKO is an online comparator website dedicated to offering assistance in personal finance and home economics products. Besides comparing the conditions of the available offers, we avail you of quality information that guides you through getting an offer that’s most compatible with your needs and peculiarities.
Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.