500+ and cash loans – basic information

 

The financial situation of many Polish families is not the best. Even when both parents work, it is sometimes difficult for them to provide good conditions for raising children, especially when there are several of them. The benefit received under the government program “Family 500+” can help in this situation. Can this extra income be taken into account when applying for a cash loan? We will try to answer this question.  Learn more at http://artlini.net

“Family 500+” program – what is it about? 

Since 2016, the state program “Family 500+” has been implemented in Poland, whose task is to financially support families in raising children. As intended by the legislator, the benefit of PLN 500 per month was to be allocated to the second and each subsequent child in the family. Until now, the first child benefit was conditional on meeting the income criterion.

From July 2019, however, the program covers all children, regardless of their parents’ earnings. This financial support is to be paid until the child reaches the age of majority. The purpose of introducing the “Rodzina 500+” program was primarily to improve the living conditions of Polish families. Such support is also expected to encourage Poles to have more children, which will ultimately lead to demographic growth.

Is 500+ included in income? 

The question of whether child benefit under the “Family 500+” program can be taken into account when we intend to apply for a loan arouses extreme emotions. Many people think that this is money that should be allocated to the needs of raising children, therefore they cannot be used to repay loan installments. Others say that refurbishing an apartment, sharing a family vacation or buying real estate meet the needs of the whole family, including children, so it’s not bad.

So how do the banks themselves address this issue? It really depends on what type of loan you are going to apply for. In the case of a mortgage, we can hardly count on the bank to fail money from 500+ as part of our income. This is due to the simple fact that the benefit of this program is paid only for a predetermined period of time until the child reaches the age of majority. At best, we can use this additional source of income for 18 years. Mortgages, however, are granted for much longer periods of time, which can be 20, 30 or even 40 years. It is also impossible to predict whether the program will be closed as a result of government changes or financial problems. That is why banks cannot take such big risks. The issue of cash loans, however, is completely different. 

500+ included in the cash loan 

A cash loan is a financial liability incurred for a much shorter period of time than a mortgage. Therefore, for the bank, the money that parents receive under the 500+ program can be a source of additional income. This is especially important for large families, who most often have problems obtaining a positive opinion of the bank. However, due to the fact that the benefit is treated as income, often the family’s creditworthiness improves significantly, and therefore the chances of getting a cash loan by it also increases. 

Interestingly, from the lenders’ perspective, the money received by families from the 500+ program may be a more stable source of income for the borrower than the remuneration obtained under the employment contract. Of course, only when it comes to short-term loans. There may always be some unforeseen circumstances, as a result of which the employed person will lose his job, and therefore also his primary source of income. However, the 500+ benefit is paid from the state budget, therefore we will not lose it overnight. In some ways, this is guaranteed by the state. 

Where can you get a cash loan with 500+ included? 

Due to the fact that most financial institutions recognize the 500+ program as an additional source of customer income, we can apply for a cash loan everywhere. Of course, it is wise to start by checking the offer of our own bank in which we have an account. Usually, these institutions offer their clients very favorable terms of borrowing this type of loan. In addition, the amount of all formalities is limited to a minimum, so that the money can go to our account even on the same day we submit the application.

But, of course, the bank is not the only place where we can apply for a cash loan. Currently, there are many different companies that offer loans based solely on income statements. At that time, our credibility as borrowers at BIK is not even checked. This is certainly a very quick solution, but remember to always carefully read the terms of taking such loans. With increased risk, financial institutions usually impose higher interest rates and additional fees on the client.