Unemployment in Croatia is, unfortunately, on the high branches and many young and old have made their belly go to the white world.
Why lend to individuals
Those who stay are struggling in every possible way to save their home budget and save something, but we all know that is not an easy task.
So if you find yourself in an awkward situation and wondering how to cover your new debt, think about the best options for lending to individuals – whether it is a bank, credit institution or family member and friend.
Easy to lend to individuals in credit houses
When it comes to money, people do not like to discuss too much and reveal their financial situation to others. Especially if she’s not in the best shape.
In order not to be embarrassed, they will soon ask for a loan from a bank or lending company. They lend to individuals both, with banks having more rigorous conditions and almost necessarily requiring a HROK report, while other places may require loans without insight into the hrok.
The purpose of the Croatian Credit Registry is to make it easier and more accurate to evaluate the current credit standing for each client individually.
The goal is to actually see and evaluate the client’s real options on time so that their current financial obligations are not beyond the ability to repay their monthly annuities.
Credit houses are more liberal about this and do not require much paperwork. All adult citizens of the Republic of Croatia who have regular incomes and regularly settle their debts can apply for loans to individuals. The form is completed online as well as the contract, and the documentation is accompanied by a copy of the identity card and current account card.
This procedure is valid for amounts up to HRK 3,000, if the amount exceeds this, then a bank statement and a payroll or pension list must be attached. The interest rate depends on the length of the repayment period, which means that the higher the interest rate, the longer the repayment term.
And employers pay off loans to individuals
Employers have the option of lending to individuals. In this situation, interest is inevitable and regulated by the state. It is not possible to pay off a loan to individuals without an interest rate, with the interest rate not lower than three percent per year. This is the minimum interest rate that a company is subject to when lending to an individual. If it is lower, it is considered to be a profit or a receipt that the owner would not otherwise receive, and taxes and surtax must be paid.
This type of loan refers to relatively small amounts that are repaid over a short repayment period. Most often, they issue cash loans that have no special purpose, so they can be used for any purpose.
The method of repayment depends on the agreement with the employer, and the debt can be repaid on a one-off or multiple basis over several months. The latter method is more popular because debt is easier to repay.
It is more difficult to borrow from a family than from a bank
Seeking a loan from a friend or family is not easy, because at the same time, you find that your financial situation is bad. And that is hard to admit to even the bravest. Loans to individuals can be given to your loved ones, but before lending money, it’s best to put it on paper.
Agree with the other party to keep the loan between you and sign a contract that clearly defines what the amount is, what the repayment plan is, and how you plan to repay it. It is better to regulate things by law than to regret later that money has buried your relationships.