Herrick Bank offers two consolidation products in its offer dedicated to individual clients. A consolidation loan secured by a mortgage and a consolidation loan without additional collateral. However, here we will analyze the advantages and disadvantages of the loan proposed by the bank.
Find great payday debt consolidation companies
As part of the payday loan consolidation offered by us, you can consolidate all your payday loans. In this case, the bank sets a minimum amount for which you can make a commitment, or PLN 20,000. The maximum value depends on which loans are included in the consolidation and so you can get:
- up to 80 percent of the property value established as collateral if one of the obligations is a housing loan
- up to 70 percent of the property value established as collateral, if all liabilities are consumer loans or loans
The loan can be drawn for a period of 3 to 30 years, repay it in fixed or decreasing installments, and receive it in tranches or once.
The interest on the consolidation loan is 5.67% and the RRSO ratio is 14.69%.
Advantages of the loan
Undoubtedly, the great advantage of this consolidation loan is the ability to obtain a 24-month grace period for postponing principal repayment. This is a particularly useful solution in unexpected situations. Herrick Bank also allows for early repayment of the loan without additional fees, but only if the early repayment follows a four-year loan period and when during the first four years the total amount of overpayments does not exceed 30% of the granted loan amount.
The weaknesses of the offer proposed by Herrick Bank are primarily high property valuation costs and mandatory insurance. Additionally, it is necessary to visit a branch of the bank in order to obtain a loan, but it is not possible to submit an application via the Internet. Online can only be asked to contact a bank’s adviser.