A convenient and extremely attractive solution for many people who need cash is a PIT loan. It is characterized by a minimum of formalities, which greatly simplifies the entire procedure and significantly accelerates the payment of funds. Why? When applying for a PIT loan, we use the tax return for the previous year, which includes both the source, the amount of income and the form of employment. A bank analyst, with the help of only one document, which is PIT, can verify all the information needed to perform a financial analysis and check the client’s status in the Credit Information Bureau database. The PIT loan simplified us both – a small number of documents to be provided by the client (we only need to add a valid ID card) and the bank itself – all the most important data is received quickly, conveniently and, most importantly, credibly. What else do you need to know if you are interested in a PIT loan ? Who will be most satisfied with this solution? What do you need to remember when you want to apply for it? We invite you to read!
What is a PIT loan?
The beginning of the year, or more precisely the period from January to the end of April, is a hot time for tax offices. This is because most employees are required to submit their tax return to the Tax Office. This should be done by the last day of April – which, in practice, for many of us ends with completing the declaration just before the picnic and nervous delivery, whether by mail or in person, often standing in giant queues.
All working people, regardless of the form of employment, should receive a PIT from the employer by the end of February. If we earn income from various sources – for example, we work part-time in two different places, earn extra money under civil law contracts or receive a survivor’s pension – each of them must be summarized in a separate PIT and then settled in the tax return. The obligation to settle the PIT declaration also applies to people who run their own business. Banks that offer PIT loans accept the following types of settlements:
Only a few selected banks make an offer of this form of lending. What’s more, people who run their own business may face a refusal or offer to grant them a loan much lower than the one applied for. This is due to the fact that this form of income does not guarantee financial liquidity, and in addition to the PIT declaration, it may be necessary to attach a large number of additional documents: confirming revenues, or certificates from the Social Insurance Institution and the Tax Office not to be in arrears with contributions. However, it is worth following the offer of each bank offering a PIT loan, because the need to provide additional documents is usually a very individual matter.
An experienced credit advisor, fluent in the offers and promotions appearing on the market, will certainly be able to propose a solution suitable also for entrepreneurs.
What is the difference between a PIT loan and a cash loan?
In most cases, the PIT loan is advertised as a favorable, low-interest and simple financial product, and the funds obtained in this way can be used for any purpose. In fact, most of these offers are only slightly different from traditional credit. Nevertheless, limiting the formalities to a minimum, and hence – a quick credit decision, is really a big advantage of this type of banking products. The borrower does not have to provide bank statements, a certificate from the employer (often on the bank’s print), other statements and documents necessary to perform a standard financial analysis. When submitting the application, you only need to have your current PIT and identity document. This is obviously very important when we care about time or we simply cannot afford the tedious collection of documents, the acquisition of which sometimes not only takes a long time, but simply in the world is troublesome.
PIT loan – when can you apply for it?
As for the PIT loan offer, some banks may shorten the loan period or offer loan amounts slightly lower than those requested. Often, these “promotions” also have a specific duration, which often expires with the end of May or June. Of course, in any case, the analyst may ask for additional documentation – however, these are situations where there were some ambiguities during the financial analysis. That is why, it is so important to support a person experienced in this subject who will lead us through the formalities – even if they are few – in an efficient and painless way.
Who is a PIT loan for?
The PIT loan is for anyone who needs extra cash, values time and minimum banking formalities. It is also a good solution for people who were surprised by the amount of tax to be paid after the PIT tax return. Often these are amounts exceeding one thousand or even several thousand zlotys, which is why a low-interest and quick PIT loan can solve this type of problem.
People interested in a PIT loan should be in a hurry. Many promotional offers are already underway. It is worth verifying which banks grant such loans and ask for all the details directly from the adviser.
To sum up, a “PIT loan” is a chance to obtain financing for people who care about a quick credit decision or those who are averse to collecting from the employer (or bookkeeper, in the case of their own business) a number of income documents. Thanks to the information contained in the PIT (form of employment, amount and source of income), a bank analyst can make a financial analysis and check the client’s status in the Credit Information Bureau. Hence – a minimum of formalities, convenience and reliability. No extracts, certificates etc.
Unfortunately, very often individual clients or people running their own businesses face refusal to loan or offer to receive a loan lower than the one applied for, on other, less satisfying terms, such as shorter loan period. The reason for such decisions is the lack of guarantee of financial liquidity, which results in the need to provide additional documents, often in large quantities. That is why it is worth entrusting credit matters to an experienced financial expert who will help minimize the number of documents, select the best offer and explain any ambiguities (if they arise). Thanks to the help of a financial advisor, we will save time, unnecessary nerves and we are sure that we will get loans that will be most beneficial for us. It is worth remembering that you should hurry, because many promotional offers are already underway.