In 2015, an act appeared that guarantees help to those who have financial problems and are unable to pay back their loans.
Great! According to official information, the Borrowers Support Fund still has over PLN 600 million. Why do they not reach those who need help paying back the loan? Is the public sufficiently informed about this fact?
At the beginning of 2016, banks paid PLN 601 million to the account of Bank Good Finance. The obligation to pay funds to the fund was specified in the Act of October 9, 2015. It describes the rules for granting repayable financial support to natural persons obliged to repay a housing loan who are in financial difficulties.
The support is paid for a period not longer than 18 months in the amount of the capital and interest installments of the housing loan – not more than PLN 1,500 per month. The condition for receiving support is of course submitting the application to the bank where we currently have a housing loan.
It should be emphasized here that this support is not free. It is returned after two years of grace. The repayment lasts 8 years in equal and interest-free monthly installments. The borrower will be informed by post by Bank Good Finance about the support reimbursement schedule, installment amounts and the invoice number to reimburse the funds received.
What are the borrower’s obligations?
In order to obtain support, the borrower should submit an application (at the bank in which he has a housing loan) by December 31, 2018. To obtain support, he must declare – under pain of criminal liability – in the application for: a) the existence of circumstances constituting the basis for granting support, including which of the prerequisites referred to in art.
clause 1, is the basis for applying for support, b) the conditions of all insurance contracts, on the basis of which he is entitled to unemployment benefit, including the date on which the period of payment of benefits under these contracts expires – in the event that he concluded the insurance contract repayment of the loan, guaranteeing the payment of benefits in the event of job loss, c) the coefficient expressing the relation between the amount of the installment paid for the housing loan and the monthly income – if the borrower applies for support pursuant to art.
3 clause 1 point 2, d) household income within the meaning of the Act on social assistance and the number of household members of the borrower – if the borrower applies for support pursuant to art. 3 clause 1 point 3. At the moment when the support was granted on the basis of art. 3 clause 1 point 1, which says that “the support may be granted if the borrower has the status of the unemployed on the day of submitting the application for support (…)” – the creditor sends information about granting support to the poviat labor office competent according to the borrower’s place of residence. Support may be granted in cases specified in Article 3 of the Act on support for borrowers in financial difficulties who have taken out a housing loan: 1) on the day of submitting the application for support, the borrower has the status of the unemployed, or 2) the borrower shall bear the monthly costs of servicing the loan housing in an amount exceeding 60% of the household’s monthly income , or 3) monthly household income, less the monthly cost of servicing the housing loan, does not exceed: a) in the case of a single-person household – the amount specified in art. . 8 clause 1 point 1 of this Act, b) in the case of a multi-person household – the product of the number of household members of the borrower and the amount indicated in art. 8 clause 1 point 2 of this Act.
Suspension of support payments
Bank Good Finance may suspend the payment of support in the event of:
- loss of unemployment status,
- disposal of the subject of credit,
- termination of the housing loan agreement (on the day the notice period ends),
- taking enforcement action on the subject of the loan (on the day of taking the first enforcement action),
- loan repayment (on the day of paying the last installment),
- increasing monthly revenues, lowering the monthly installment or reducing the number of household members (which does not meet the specific requirements for providing support, according to the Act).