Thursday , December 9 2021

Responsible Loan Index 2020 – People in Need



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The non-profit organization People in Need compared the providers of thirty-eight personal loans in the Czech Republic. In the so-called responsible lending index, the lending company evaluates them according to fifteen parameters in the area of ​​costs related to lending, transparency and customer agreement. The ranking is published twice a year and where companies have improved, for example in terms of information transparency.

The overall ranking divides consumer credit providers into five groups based on the different number of stars. Necessary people analyze individual businesses using fifteen parameters in the areas of credit costs, transparency, and customer satisfaction. It then combines the results of the individual parameters into an overall classification.

“Borrowing from a frivolous company is always the problem, but the consequences of a bad decision in the crisis we have now can be really devastating for people.
The high default price or excessive cost makes the loan a no-brainer. The level of supplier support is also becoming increasingly important. Once the legal deferral of payments ends in October, it will be up to each creditor to show the amount of understanding they will show to debtors who have problems with repayment, ”said Daniel Hůle, head of Debt Advice for Necessary Persons.

The ranking evaluates fifteen criteria from these three areas

  • costs – how many people will pay for the loan and what the potential delay in repayment will cost
  • transparency and communication – the scope and clarity of the information provided
  • customer friendliness – the performance of the creditors before and after the loan

The responsible loan index has a loan model amount of CZK 50,000 and is repaid in the usual 12 monthly installments. As for the banks, in this case the interest rates range from ten to fifteen per cent; the largest non-bank companies provide about thirty percent.

However, there are also eight companies on the market, while loan applicants pay one hundred percent or more, while the two most expensive providers offer their loans at an interest rate of over two hundred percent.

People in Need - Responsible Financing Index - Fall 2020

People Needed – Responsible Funding Index – Fall 2020 Photo: Instead of a man

However, companies have improved over the years in terms of information transparency. According to David Borges, an author and author of People in Need, creditors gradually stop hiding sensitive information about their products and are more fair to customers.

According to him, there is still a long way to go. For example, although all conditions have been sent to the website by all companies, this is not the case with the contract. “The situation is absurd. The creditors want to sign the terms after the debtor and he has read them carefully, but they will show him the contract after he has given a sensitive
personal data, ”Borges said, noting that the behavior of lenders here is also better, with more than three-quarters of them already having contracts on the website, eleven of which do not, such as ČSOB or Komerční bank.

According to Borges, for example, companies are also trying to improve the quality of web calculators by allowing them to calculate their monthly payment in advance, and how much I will have to pay in total.

“So creditors are gradually doing part of the housework. Now it’s up to people to take advantage of that and know in advance what levels they can take. Unlike in previous years, they have the option with most suppliers now,” Borges added.

Order Supplier Number of points Number of stars CZK price The price of the loan CZK delay Non-payment costs
1 Airbank 88.1 4 3949 Low 5780 Low
2 Zonky 84.2 4 4980 Average 8987 Low
3 Home Credit 83.1 4 6640 Average 12129 Low
4 Česká Spořitelna 79.3 4 4758 Average 7300 Low
5 Cofidis 79.2 4 5792 Average 15473 Average
6 ČSOB 77.8 4 3931 Low 6673 Low
7 Hellobank 74.4 3 3700 Low 14264 Average
8 Unicredit Bank 73.3 3 3943 Low 15815 Average
9 Sberbank 71.4 3 4126 Low 14568 Average
10 Equabank 70.8 3 4305 Low 14150 Average
11 Essox 70 3 2443 Low 15822 Average
12 Currency 65.8 3 6331 Average 15835 Average
13 Commercial Bank 65.6 3 3352 Low 11577 Low
14 mBank 65.2 3 2722 Low 11306 Low
15 Raiffeisenbank 63.9 3 4407 Average 12143 Low
16 Zaplo 60.6 2 25447 Tall 28345 Tall
17 EASY CREDIT 59.3 2 10996 Tall 11285 Low
18 Vr-nopf 59.3 2 3589 Low 13856 Average
19 Czech triangle 59 2 11335 Tall 21207 Tall
20 Coefficient 58.5 2 5494 Average 11426 Low
21 CFIG 58.2 2 12231 Tall 23340 Tall
22 Faircredit 58.2 2 35848 Very high 29936 Very high
23 Credit (Provident) 58 2 10277 Tall 20773 Tall
24 Financial support 57.3 2 39705 Very high 21453 Tall
25 Credit portal 55.9 1 35000 Very high 34360 Very high
26 Tommy Stachi 55.7 1 23946 Tall 30968 Very high
27 OKV Leasing 55.3 1 7535 Average 16925 Tall
28 Prontopjčka 55.1 1 40771 Very high 36434 Very high
29 Provident Finance 54.1 1 24639 Tall 30849 Very high
30 Ferratum 53.8 1 30446 Very high 29304 Tall
31 HFS 52.9 1 18685 Tall 29442 Very high
32 EverydayPlus 52.7 1 85159 Very high 15497 Average
33 Express Cash 52.6 1 36855 Very high 33761 Very high
34 P&P loan 52.1 1 26583 Tall 24494 Tall
35 Oberbank 51.3 1 5447 Average 18052 Tall
36 Profi Credit 45.8 0 42634 Very high 38752 Very high
37 Center funding 37.5 0 70427 Very high 54419 Very high
38 Via SMS 35 0 95371 Very high 73381 Very high
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