The decision to make a cash loan is one of the most important financial decisions we make in our lives. It largely binds us to banks and imposes an obligation on us that affects our financial status and further financial capabilities. This is an extremely important element, especially when our financial situation is not classified as good and attractive – both for the borrower and the lender.
Are we able to take a loan by earning the lowest domestic income? What conditions must we meet in such specific conditions? Can we somehow increase the chance of getting a higher loan?
What is the lowest national rate?
Let’s start, however, with the very lowest national date. This amount changes successively every year, indicating a growing amount. Currently, from the beginning of 2019, we are dealing with:
- the lowest net domestic price USD 1634
- lowest domestic gross USD 2,250
Which indicates an increase of USD 150 gross (104 net) compared to the previous year, 2018. In the case of an order agreement, the amount is calculated on the basis of an hourly rate, which is currently USD 14.70 gross. This is a small amount, taking into account the current average earnings in the country . According to data indicating the median from 2018, we currently earn over USD 4,500 a month on average, which indicates twice the amount than in the case of the minimum amount.
So knowing the exact salary of the person employed on the so-called the lowest national rate, questions automatically arise regarding the chances of getting a loan . The lowest national, as the name implies, is the minimum amount that we must receive after working full-time under an employment contract. This is a relatively low amount and between successive increases, still indicating a small amount of maintenance.
So this is a problematic amount, which creates a real difficulty in maintaining, and thus – also in applying for a loan. People with such a salary are wondering if they have a real chance of receiving financial help in the form of a loan or a loan. However, we can already ensure that receiving a salary of USD 2,200 gross is not a complete obstacle in taking loans.
The difference between the national average and the minimum
As a curiosity and emphasizing a significant difference, it is worth mentioning that in 2018 the average salary in Poland is USD 4,521 gross, which gives about 3,000 net. Such a big difference between the national average and the minimum is due to the median. In the case of the former, the middle value is taken, which is both between a large group earning less than 2,000 net and a large group earning value over 10,000 net. Currently, in Poland, almost 5% of all employees can boast of such a large amount. What’s more, over 10% of Poles can boast of almost 8,000 gross.
Every year, the national minimum is determined individually due to the new regulation and changes taking place on the labor market. Every year it is also increased, giving a chance for better and more dignified conditions. The problem, however, is that despite this increase, the cost of living also increases, especially in a large and well-developed city.
Over the past year, growth has been based on USD 104, which in annual terms gives us about USD 1,200. Such a small increase is not enough or noticeable. What’s more, such a small amount is also a great breeding ground for employers. It is estimated that in Poland over 1.25 million work on a contract for a specific task or on a contract basis, while getting the lowest monthly wage.
Over the past 10 years, net costs have been increased by about USD 400, which in the perspective of development and change of the labor market is still a small and definitely insufficient amount. The prospect of increasing this amount is still small, and given the rates applicable to Western neighbors – still less attractive.
What conditions do you have to meet to get a loan?
Simply put – exactly the same as people who have more income. At present, in order for the loan application to be considered positively, we must demonstrate high reliability and creditworthiness. If your credit history is clean and does not indicate any debts arising, if you do not have overdrafts on your account and unpaid credit cards, and you have low costs of obtaining, you certainly have a better chance of obtaining a positive decision on the application.
To learn about your credit options and to familiarize yourself with the banks that offer credit despite the small amount you earn, you can use loan calculators. They, after entering the amount and data of interest to us, show the results of the query that allow us to choose the best offer.
Among the selected parameters we can enter data regarding min. revenues obtained. Thanks to this, having the lowest domestic one, we already get the first screening of information, which will allow us to select and analyze only those offers that are tailored to the financial situation. Of course, this is only the first stage of verification, so in situations of uncertainty, it is best to go to the selected facility and get more information about the available options.
Maximum cash loan amount
There are no clear guidelines and numbers that tell you what credit we can get. It is estimated that in the case of earnings of USD 1500 -1600 per month, the maximum cash loan amount is USD 6-7 thousand, with a loan period of 12 months. Of course, as we have already mentioned – to obtain a positive verification, a positive credit history and no other serious obligations are necessary.
Nevertheless, the contract concluded for the lowest domestic is not a complete obstacle to obtaining a loan or credit. If you have kept your expenses carefully so far, you are not on the list of debtors, and the spiral of debt is foreign to you – there is certainly a chance of positive verification.