Which loan is cheaper?

In anticipation of the Swiss referendum on gold reserves and, as a result of the influence of Helvetians’ decisions on the value of the Swiss currency, we are checking how the Swiss franc installment has been developing in recent years against the installment of the same loan in the Polish currency.

Borrowers in debt in Swiss currency are now undoubtedly in a difficult situation. It was during this period that the Loan and Credit / PLN exchange rate fell below PLN 2 and it is the people who were in debt at the time that are in the most difficult situation. For comparison, the statement also includes a loan in our native currency taken at the same time.

Loan in Loan and Credit – it was cheap, it is more expensive

Loan in Loan and Credit - it was cheap, it is more expensive

When analyzing the 6.5 year repayment of both loans, one should pay attention to many elements. Not only the installment of the loan is important, but also the total amount of installments paid and the amount of current debt.

Persons repaying a loan in Loan and Credit, in the amount of PLN 300 thousand, incurred for 30 years, initially started repayment of the loan on installment at the level of PLN 1421. Although the zloty weakened, among others in relation to the Swiss franc, loan installments increased slightly.

In the second half of 2009 and at the beginning of 2010, monthly payments were even lower than in the initial repayment period. This favorable change resulted from a decrease in the interest rate on the loan. In the period from mid-2008 to the end of 2009, the 3-month Libor deciding on the interest rate on loans fell from 2.79% to 0.25%.

This translated into a significant reduction


In credit costs and offset the high rate of the Swiss franc. In the following years, when the zloty continued to depreciate against the Swiss currency, the loan installment exceeded PLN 1,650 and has remained at this level for over 3 years. It is also worth noting the short-term increase of the installment to 1720 – 1760 PLN at the turn of 2011 and 2012, when the Loan and Credit / PLN exchange rate exceeded 3.65.

Today, borrowers in debt in Loan and Credit pay an installment of approximately PLN 1670. In the entire repayment period, from June 2008, the average installment was PLN 1,555. Within 6.5 years of repayment, nearly 120,000 interest and capital were paid to the bank in total.

Assumptions for the loan: – loan in the amount of PLN 300 thousand, contracted in June 2008, repayment period of 30 years, loan margin in Loan and Credit – 1.10 pp,

Loan in PLN – lower installments, but costs still higher

The borrowers who decided to take out a loan in our native currency are in a slightly different situation. These people “started” in June 2008 with a very high installment of PLN 2,110. The installments were almost 50 percent higher than the payments of people choosing a loan in Swiss franc. Initially, until the end of 2008, the loan installment was around PLN 2,000. It was not until the decline in Wibór in 2009 that the interest rate was reduced and, consequently, lower installments.

However, it is worth noting that, contrary to popular belief, installments in the native currency did not fall at all throughout the period. The year 2011 and the half of 2012 is a time of increase in monthly charges. In 2012, although payments decreased significantly compared to the initial period of 2008, the loan installment in PLN was still higher than the highest installments ever paid by people in debt in Loan and Credit. We remind you that the maximum payment in Loan and Credit is 1766 PLN in June 2012.

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