MonthNovember 2019

Micro loan / SMS loan

Not unexpectedly, news comes now that Honest Bank is closing down its business. Not that I thought they were going to have problems, but more that I always believed that companies will emerge that do not make it go together or do not manage.

Filed for bankruptcy instead.


The short story is that the company was given a new management in September and this has discovered that everything has not been properly managed and that it is not possible to continue the business at all without having filed for bankruptcy instead.

Take over in a company


Must be interesting to take over in a company and the first thing you do is to discover that it has been neglected to such an extent that you have to strike again.

In a relatively new industry that counts SMS loans / Micro loans, it is not surprising in any way that strange things emerge. Would bet that it is almost always the case when new industries emerge where people think they can make a lot of money. Some do not manage the companies and others find that it is certainly not as easy to withdraw money as they intended.

Now it should be said that I have no idea if Honest Bank has done things illegally or if things have just gone bad for them.

What I can only draw conclusions from is what I read in messages that they themselves left out and then it feels like everything has not been quite right to simply. Money has been spent in ways they would not have made at all.

Borrow from them lately


We have had Honest Bank here on the site for a while but of course we have removed them now. Not because it had played any role really since no one has been able to borrow from them lately.

Loan agreement

The loan agreement usually appears wherever money is borrowed for any purpose. This document regulates all issues relevant to a given lender and borrower: financing conditions, repayment date, or consequences of arrears in settling the debt. Therefore, it is good to know what such a document looks like and which elements should be given special attention.


Loan agreement – statutory definition

Loan agreement - statutory definition

Pursuant to the provisions of the Civil Code, the money lender undertakes to transfer the fixed amount of funds to the user of the property through a loan agreement. These – the user is obliged to return under certain conditions. In other words, if you conclude a loan agreement, the acquired funds will become your property. You will be able to publish them in any way you like. After some time, however, you will have to make an appropriate refund. Debt repayment can be one-off or can be done systematically in agreed parts.

In practice, in order to be able to take out a loan in a safe and profitable way, whether from a private person or a loan company, you should be well prepared for it. The following guide for borrowers will help you with this.


Types of loan agreements – the loan is uneven

loan agreement

The structure of the loan agreement varies depending on the type of financial product as well as the details of the offer. Banks and loan companies offer cash loans that range from several hundred to several dozen thousand zlotys and have a repayment deadline of several to several dozen months.

Banks provide additional mortgage loans, while the non-bank sector: short-term payday loans and revolving loans (similar to the credit limit).

Due to this diversity of loan instruments and the large number of financial institutions, individual loan agreements may differ significantly. On the other hand, each of them is prepared according to a similar scheme and should contain a specific set of elements.


What does a correctly drawn up loan agreement look like?

credit loan

Regardless of which loan product you are talking about, a properly drawn up loan agreement should contain such elements as:

  • date and place of the loan agreement;
  • indication of parties to the contract;
  • loan amount and currency;
  • conditions for repayment of the loan and its costs;
  • determining any repayment security;
  • costs related to the loan;
  • rules for possible extension of the repayment date;
  • consequences of non-payment or late payment;
  • conditions for terminating the contract;
  • signatures of the parties to the contract.