Other financial institutions

The financial market in Poland is very diversified and there are also institutions known as “parabanks”. It may seem that they are not much different from real banks – they have branches, smartly dressed employees, many interesting products and what is most important, a seemingly accessible offer. This especially may make you fail to notice that you are not using the services of a real bank. You should be careful with cash deposits in those institutions, because only banks, branches of foreign banks, and saving and credit unions can collect other people’s money for the purpose of giving loans, meaning de facto – conducting banking activity.

More on non-banking loan entities

You should not be influenced by the fact that an entity has been on the market for a long time – it may be an object of legal action in the public prosecutor’s office and still be running business. The Polish Financial Supervision Authority keeps a list of public warnings. Even if you are looking for a bank loan, a so-called short-term loan (chwilówka), you had better avoid using the services of loan firms because the interest rate can be several or even several dozen times higher than in a bank. Such firms often advertise their cheap loans on TV. You should avoid, even if you are desperate, credit intermediaries - loan firms where the condition of getting a loan is paying commission in advance. It is highly probable that you will pay commission for getting a loan or for your application being considered, and not get anything in return. The money will simply be lost.