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 Personal 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
Personal Loans in the Czech Republic, All You Need To Know:
Looking for money to finance a personal project? Hang tight to learn how to get the best financial product in the Czech Republic. By the end of the article, you will have learned about everything regarding these loans including the best offers available, factors to pay attention to while comparing them, and how to take them out like a pro.
The current market for personal loans
We give you a monthly update on the current affairs surrounding personal loans in the Czech Republic. Learn in a minute how lending in the Czech Republic is being shaped amid the current happenings:
- The Russian war has greatly affected the world’s economy Russia, causing serious distress to Eastern Europe countries like the Czech Republic, Slovakia, Hungary, and Poland among others which depend greatly on Russia for gas. Experts describe the above countries’ economies as “very vulnerable” also owing to the spiraling influx of refugees. While the country saw the surging number of refugees as a source of labor, the millions of refugees are now causing the biggest refugee crisis in Europe since World War II, experts say.
- The Russian war is taking a toll on all sectors of the economy owing to the great disturbance that it is causing in the supply chains. The financial markets are among the greatly affected sectors with their average rate reaching their all-time high in 18 years. Lending in the Czech Republic is now more expensive than ever, at 7.010% pa. This is an incredible increase of 5.669% from June last year. While the rates are at their highest now, they are still affordable.
The economic situation in the Czech Republic is unpredictable as the war comes with a double share. The country’s long-standing labor shortage could be sorted as many Ukrainian refugees stream in. However, the great disturbance of the supply chains is threatening to pin down the economy.
How to compare between online loan offers?
Comparison of offers is one step that helps a buyer end up with the best commodity in the market. With the right comparison techniques, they are able to identify a commodity that is, even though cheap, it is of good quality and perfectly suits their needs. This applies to loans too. Taking time to find the right loan for your situation will pay off with a seamless repayment process and improve your financial situation.
During the comparison, the client will need to consider all the factors affecting these loans: interest rates, repayment period, the amount, the cost of the links, and commissions, among others.
For example to buy credit offers and save 600 euros
In the following table, we can see how to compare online personal loan offers taking into account all factors.
By copying this table and performing different simulations according to the project we want to finance and the offer made by each entity, we will be able to know which one will be the best simply by comparing the total cost.
How to use FUNDGECKO to get personal loans
From our guides, you will quickly learn how to hire the best available credits in the market. We are always sure to use an easy-to-understand language so that beginners can get the most out of the guides. We provide all the information regarding these loans including factors to pay attention to, how the loans work, and all the conditions affecting them.
You’ll follow the steps below:
- Compare the different loans you’re attracted to.
- Take time to go through their conditions and their small print. This is important when comparing the offers.
- As you compare these loans, we understand that you may develop some doubts or questions. Our experts will step in to answer you to help you hire loans with confidence. Click on “Contract” and we will take you to the website of each bank so that you can follow the contracting process from there.
- We value your feedback, which is why our website has a comment section where you can air out your views and suggestions about our services.
Why do you look for personal loans?
There are a host of reasons why you would want to take out personal loans such as financing your ecological project, buying a smartphone, and remodeling your living room, among others.
Personal loans are available for the following purposes:
- Financing your studies
- Financing your vacation
- Financing a reform
- Making a big purchase
- Launching your project
- Renovating your home
- Buying electrical equipment
- Clearing an unexpected medical bill
- Importing goods for your business
- Consolidating debts
However, these conditions vary depending on the purpose of the credit. Some of these purposes have loans curated specifically for them. Hence, before taking out an offer, consult with different entities to ensure that you’re taking out the best offer.
How to apply for a personal loan?
While you may meet unique procedures while taking out personal loans, the steps taken are generally the same for entities in the Czech Republic. For instance, an entity may require you to apply for the loan from their offices, others may require online applications, and others may have both.
Below are the most common steps to follow while hiring a personal loan:
- Compare loans from several entities either online or by visiting the facilities. Be sure to go through the files as you note down the conditions of the loans offered by each entity. Compare them to identify an offer that seems to perfectly suit your financial situation.
- Whether making a physical or online application, fill out all the provided blank spaces of the application form with personal data. Be careful to ensure that the data you provide is genuine and that it corresponds to that in the bank statements and other documents.
- Wait for pre-approval. If you meet all the requirements so far, the entity will send you a pre-approval message instantly for the online application and after 48 hours for the physical mode.
- Provide all the supporting documents requested. The documents will be useful in verifying your application, hence, be sure to submit all of them either online or by dropping them off at the entity’s office.
- Read through the pre-contractual information as you take a keen look at the conditions of the offer and how the credit works. The lender will send you this information after verifying your application.
- Sign up for the offer if you agree with everything about it. You may use digital signature or sign from the entity’s office.
- The lender will finally send you the funds whose time varies depending on the mode of application.
Requirements for personal loans in the Czech Republic
Before the lender sends the money to our account, there are several requirements that we will have to meet. These will improve the lender’s confidence in granting the loans as they will verify our eligibility.
What are the must-meet requirements while taking out loans in the Czech Republic?
- Be of the legal age. However, some entities have 21 years as their minimum age requirement.
- Be a resident of the Czech Republic. Lenders will only provide financing to foreigners with a residence permit card
- Have a stable and sufficient income. The lender will assess your income viz-a-viz your monthly expenses to determine your ability to repay the loan.
- Your credit-worthiness. You want to retain a healthy level of debt that allows you to dedicate 35% to 40% of your monthly income to repay the loan. Anything more than that may make the loan harder to repay.
Having many unpaid loans will eventually frustrate your ability to get a loan. Many lenders will not provide financing if you have a negative credit score with any credit bureau (CRIF and CCR).
Documentation for applying for a personal loan
You will have to submit a series of documents to the lender that will ascertain your eligibility for the credit.
- A copy of your identity card or passport
- Bank statements showing the income and expenses of the last few months
- The most recent income tax return
- Proof of income. These may be pension receipts, receipts for the self-employed, the social security settlement, and the VAT and income tax summary.
- Proof of purpose. This is where the borrower will send a proposal showing how they intend to use the loan.
Who grants personal loans in the Czech Republic?
The financial crisis in 2008 meant good for the lending markets in the Czech Republic. Many non-bank entities rose to the occasion to fill in the long-coveted gaps created by the crisis. Since then, even though banks still hold a tight grip on the financial markets, entities found their way into the market and are working their way to the top. These entities have curated financial products that compete with those of banks or are even better.
Entities that grant personal loans:
- Bank entities
- Credit Financial Institutions (CFE)
- Private Lenders
- P2P Lending Platforms
Obtain financing through banks
- Provides a variety of friendly financial products
- Offers big loan amounts
- Has top financing conditions
- Long repayment terms
- Affordable interest rates
- Delayed granting of the funds
- Slow and tedious application process
- Strict requirements such as seniority
- Has more commissions
- Has more related products
Credit Financial Institutions (CFE)
- Financing for a variety of purposes
- Has excellent financing conditions
- Cheap due to low-interest rates
- Fewer commissions
- Fast application process
- Fast concessions
- Strict eligibility requirements
- They only operate through stores or dealerships
Getting loans online with private companies
- Fast processing of loans
- Less strict eligibility requirements
- Seniority is not a matter of consideration
- Expensive due to high interest rates
- Can lure you into over-indebtedness as they grant loans to clients with a negative credit score
Personal Loans through P2P Platforms
- Friendly financing conditions
- Fast, easy, and 100% online application
- Has no related products
- Delayed processing of funds
- Has strict eligibility requirements
- Has few platforms that provide loans to individuals
FAQ: Frequently Asked Questions
What is a personal loan?
A personal loan is an amount of money that you take out from a lending institution intending to return it later. These loans are granted under a set of conditions that both the lender and the borrower are required to abide by. A personal loan is taken to address personal financial needs such as consolidating debts, financing your car, renovating your kitchen, financing your ecological project, financing your vacation, and making big purchases among others.
Personal loans are somewhat generic as they provide financing for a variety of purposes. This is different from loans like student credits which provide financing for studies exclusively. Hence, for whichever purpose you’re taking out a personal loan, be sure that it is the best available option.
In the Czech Republic, personal loans have gained popularity especially since the pandemic set in, and even more when the country was in its recovery phase. The interest rates were also friendly, which surged their demand.
Why don’t you give me personal loans?
Anyone can qualify for personal loans as long as they meet all the spelled-out requirements. For instance, a borrower has to be above the legal age and must have a positive credit score with CRIF and CCR. In the case of expats, the lender will require your residence permit card, among other documents that show your eligibility.
Failure to meet a single requirement will make the lender reject your application.
What is the binding offer of personal credit?
We ask for a binding offer when we feel like we want to compare other loan offers but don’t want to let go of the current offer. The lender is required to give us a minimum of 14 calendar days without withdrawing the offer.
Can personal loans be paid in advance?
The Czech Republic law on consumer credits made it legal to repay loans before the agreed period. However, the borrower is required to abide by the terms and conditions of the loans. For instance, they will be required to repay all the interests and commissions that they should have paid when repaying the loan to the end of the term. In many cases, the borrower is required to pay an early repayment fee.
What if I take out a loan online and then regret it?
You’re allowed to withdraw the loan offer even after receiving the funds. However, this only happens within the first 14 calendar days, beyond which the borrower will attract penalties.
What happens if I don’t pay back a personal loan?
Try as much as possible to repay a loan on time. Failure to do so will attract late repayment fees. Besides, your name will land on the defaulters’ list (on CRIF and CCR) which will cost you a sizable amount of money to clear your name. Note that you cannot access any loans as long as your name is on the defaulters’ list.
When to Apply for a Personal Loan
Personal loans can be used for any financial need. However, because of their expensive and unsecured nature, you want to ensure that their usage pays you back. You may use them to consolidate debts, finance your car, and make a big purchase. The amount of loan you get from this loan is determined by your debt-to-income ratio and other factors like your negotiating power.
You may get a loan in very friendly conditions if you take the time to compare the current offers in the market. These loans are also available to expats who can confirm their eligibility and ability to repay them.
When to Apply for a Fast Loan
Fast loans are taken out when in need of a quick financial injection. They are helpful when we are faced with an urgent economic need and when we can’t find an alternative source of money.
However, due to their less strict requirements and ease of providing the funds, they can be easily abused. Many people who love fast loans are over-indebted.
Remember to take out loans wisely – only when you need them. Personal loans are only preferred when they are the best financing option, otherwise, loans curated for specific purposes are a swear by. The above three options are the best providers of these loans in the Czech Republic. We hope you find one among them that suits you.
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.