Are you searching for the best way to loan money in Finland? The country has numerous different options for consumer credit facilities.
However, choosing the loan option that’s right for you requires a bit of due diligence on your part. Sourcing a reputable loan company that does not use predatory lending tactics, such as excessively high-interest rates, can be a challenge.
Here is a brief guide of what you need to know if you’re looking for a loan in Finland.
The Types of Loans Available in Finland
Finnish lending authorities offer consumer credit in various financial vehicles. Here is a list of typical options available to you in the credit market.
The easiest way to finance a small loan in Finland is using your credit card facility. Banks and lending institutions create credit card facilities for their clients without any form of collateral. This financial vehicle allows you to leverage credit from the bank or institution for repayment in the future.
Credit card companies typically offer facilities related to your monthly income. Your credit card usually affords you an interest moratorium where you can settle your outstanding credit loan amount without paying additional interest on the loan amount.
It’s a prudent financial strategy to pay off your credit card as quickly as possible. This vehicle becomes incredibly expensive if you start to use the credit facility. Some banks charge up to 21-per cent monthly interest on the outstanding credit amount once the moratorium period expires.
Unsecured Personal Loans
The second type of loan available to consumers in Finland is an unsecured loan. Consumers can obtain this type of lending vehicle from banks and private lending institutions recognized and licensed by the Finnish Financial authorities, such as LainaaIlmanVakuuksia.
These loans are unsecured, meaning that you don’t require any capital or assets to secure the loan. All you need to do to get your hands on the money is sign a loan agreement that stipulated the terms of the lending facility and your commitment to repay the lender.
An unsecured loan is the best financial vehicle available for acquiring mid-term finance for small purchases. If you need to repair your car, re-furnish your lounge, or go on a family holiday, unsecured personal loans offer you instant access to capital within a few hours after a successful application.
This loan facility offers consumers the chance to grab quick cash for emergency purchases or bridge finance. This loan is typically available from smaller lenders licensed by the Finnish financial authorities.
Your paycheck determines the maximum loan amount available to you. The lender will not let you over-extend your credit and typically requires payment for the loan in full on your next payday.
These types of loans come with hefty interest repayments, so it’s in your best interest to repay the loan as quickly as possible. Payday loans provide money in a hurry for consumers that are in desperate need of credit.
Why Your Credit Score Matters
Before you apply for a loan, check your credit score. Your credit score determines the interest rate at which your financial provider will loan money to you. Every time you successfully repay a loan, your credit profile improves. Therefore, always make sure you only loan money y0ou can afford to repay.