Loans In Finland
Are you looking for loans in Finland? Do you want to know what a loan is and what to consider before applying for a loan? Then this article is for you. Here you can find all about loans and taking loans in Finland.
In the following article, you will find options for taking loans in Finland. You will also find all the information about loans in Finland so that you can decide for yourself which option is best for you.
In this text, we do not give you financial advice and everything you decide will be your decision.
When it comes to finances, you have to be extra careful, because the decisions you make can affect your life for a long time.
So be well-informed and do your complete research before making any decision.
Sortter is a Finnish loan comparison service that is always free to use. They want to make finding an affordable loan as easy and secure as possible. Service lets you compare loans easily and quickly, without any small print or other unpleasant surprises. They are entirely impartial and do not favor any of their partners, and instead strive to find the option that is in your best interest.
The service has been built according to the strictest information security practices and operates in a completely encrypted environment. With Sortter, you can compare the loan terms offered by different banks quickly and free of charge.
- Free application
- No commitments
- Loan offers on the same day
- Loan period can be 1–15 years
- Loan sum can be €1,000–€60,000
- Interest rate can be 4–20%
LandMe is a portal for online loans in Denmark. They are a digital platform that gives you an overview of your loan options through an objective comparison of interest rates, fees, and terms. They collect personal loan offers from several banks so that you can make the right decision easily, quickly, and with peace of mind.
- Apply for a consolidation loan from €500 up to €60,000
- You can get loan offers from up to 23 banks
- It is completely free and non-binding to apply.
- Interest from 4.5%
- Quick loan decision, money immediately in the account, even on the same day
- Loan period can be 1–15 years
Loans in Finland: Good to know
A Loan may be described as money, property, or material goods that are given out by another party known as the lender in exchange for future repayments of the loan value plus interest rate and other charges. Loans, in general, come in different forms, they include commercial, unsecured and secured loans.
A lender can be a financial institution, government, or corporation. They lend the borrower an agreed sum of money, who in return as stated on the contracts pay back the money including interest and any other finance charges.
But why do we need a loan? Most people take up loans due to so many reasons. They include buying a new car, a new house, starting a new business, vacation, etc. A loan can help you get anything you want in Finland. But there are some things you need to understand about loans in Finland.
In the next few sections, we will be answering some major questions most people ask when they need a loan in Finland. They include the how, why, which, and what loans are available for you in Finland.
Loan In Finland As Consumer Credit
Loans in Finland are also known as Consumer credit. Consumer credit is made available to a majority of Finnish who needs cash. It doesn’t matter if you need them to buy a new car, renovate your kitchen, plan your next vacation trip, or have funds to organize your wedding. Cash credit can be used for any purpose without indicating what you need it for.
Although, in Finland, some specific loans are given for special purposes. But consumer loans aren’t tied to any purpose. You can get them off from the bank or financial companies without tending collateral or paperwork. In Finland, the maximum period to repay your loan is 15 years, which you can get without collateral.
Loans in Finland can be given in the range of €1000 to €60,000. The amount that will be given to you depends on your salary, employment with your employer, and how long you have stayed in Finland. We understand from experience that most banks in Finland reward how long you have been in Finland and your employment status. This help in increasing your chances of taking up a loan in Finland.
Who Can Ask For A Loan In Finland
In Finland, anyone who is registered can receive a loan. Although in most cases, you must have an ongoing income to show the ability to repay the loan. However, in Finland, you can also obtain a loan through Rehabilitation Allowance (Kela). All these factors still depend on the issuing bank of Finland. So you must make inquiries to check if you’re qualified for a consumer loan or credit.
How Is Creditworthiness Measured In Finland?
In Finland, creditworthiness is used to assess a person’s ability to pay, financial standing, and reliability. This information is made available to financial companies who want to understand the financial standings of their clients before issuing out loans or properties.
In case of default payments, the creditor will be notified immediately. So you need to maintain a good credit score to be able to receive a loan in Finland. Your credit score is a tool that most banks and crowdfunding companies in Finland make use of before releasing loans to borrowers.
How To Take A Loan In Finland
In Finland, you can ask for a loan in several ways. But the three most popular ways to get a loan in Finland are through:
- Going to Bank
- P2P lending
- Online loan application
Going To Bank
Local banks are most popular when it comes to taking up loans in Finland. This is because of the familiarity between banks and their customer. Also, it’s expected that when you think of getting a loan; a bank is usually the first place you think of.
Most bank loan applications in Finland are usually done physically. There you will meet with a loan officer who will direct you on what to do and the documents you need to process your loan. Compared to other alternative methods of getting loans in Finland, banks usually have higher credit terms that aren’t favorable.
Although bank loans are quite easy and less risky, they often come with high-interest rates. You might want to compare banks in Finland to know which of them offer a favorable rate that you can afford. But while this method can be tedious, you might want to consider other options below.
Peer-to-peer or crowdfunding is a popular way of lending money in Finland, which involves a middleman. P2P platforms help connect those who need money to those who want to lend money. This process doesn’t involve the bank in its activity.
Lenders in this type of scheme are either individuals or companies. There are 4 P2P platforms operating in Finland. They include Fellow Finance, Bondora, Fixura, and Fundedbyme.
While P2P lending is cheaper, less time-consuming, and faster. They often come with high risks. You need to be extra careful if you choose to borrow from P2P platforms. Also, P2P platforms aren’t reliable. You have little to no information about your lender, which might become a problem when you have to sue someone.
Online Loan Application
If you’re wondering what is the fastest, cheapest, and most secure way of taking out a loan in Finland; then an online loan is the best option for you. It’s a very popular way of borrowing money among the Finnish. Online loans save you time and energy. You can apply for loans online without collateral.
In addition, the waiting time for online low is minimal as most people report getting their loan approved within minutes. For instance, if you apply for a secured Bank loan, the signatures and negotiation can be done electronically from start to finish.
Also, compared to other loan options for you in Finland, you can make use of a loan calculator to determine how much loan you are eligible to receive without collateral. Although, your credit score also plays an important role in determining the amount you will get.
Also, it’s a good idea to apply for a loan online in Finland because:
- You don’t need to visit the bank. You can apply from the comfort of your home whenever it’s convenient for you.
- Online loans allow you to compare different loan products easily.
- You can compare borrowing costs at any time
- The loan will apply to your life situation.
Types Of Loans Available In Finland
Private Loan In Finland
In Finland, private loans are cash facilities given by private lenders to Finnish consumers and entrepreneurs without the services of a bank. Private loan in Finland allows Finnish citizens to borrow money if they are facing problem obtaining money from the bank, i.e. bad credit score.
Also, in addition to banks, Finland citizens can get a loan from online applications and P2P platforms. These platforms bring together borrowers and Finnish private investors or lenders to proceed with private loans. Although, this method is prone to numerous scams in Finland. There are cases where persons act as private investors to deceive borrowers who are facing financial difficulties.
Before you take out any form of private loan in Finland; make sure you check if they are registered with the right authority. Check if there are complaints or negative reports about them on social media platforms, blogs, and websites before applying for a loan. Also, private loans can be seen as personal or consumer loans in Finland.
Home Loans In Finland
Home loans in Finland are loans for buying a home or occupancy rights, building, or renovating a home. Also, as in the case of most countries, the primary criterion for obtaining a home loan in Finland is the ability to repay as stated on the contract. Although having a temporary job is not an obstacle in obtaining a loan in Finland, most banks are usually cautious when you’re not a citizen.
However, private lenders also give out home or mortgage loans to private individuals who are tapping the private financing market to acquire a property. Most private home loans in Finland usually request an equity injection, which can be between 10% and 30%. This they use as security of their fund in case of down payments.
Home loans are made available for Finnish citizens who want to acquire property and not cash. If you need cash, then a private loan in Finland is what you should seek out. However, due to the rise of online loan applications and P2P platforms, there is no need for you to visit a bank to apply for a mortgage loan.
Car Loan In Finland
A car or auto loan is a funding facility given by a lender to an individual borrower to purchase or hire a car. Car loans are given out by financial companies to assist an individual purchase a vehicle in Finland. This car may be for personal or professional use without going through the hassles of banks and other financial institutions.
Car loans are made available in Finland where an individual due to financial difficulties is unable to purchase them. Car loans can be gotten from the bank (if you have a good credit score), P2P lending, and Online applications. In cases of P2P platforms and Online applications, you might have to deal with private sellers instead of official car dealers.
Students Loan In Finland
Student loans in Finland are made available to a majority of its citizens studying in high schools and colleges. While the main focus of student loans in Finland is geared towards undergraduate and graduate students; there are loans catered for other levels. The loan help covers tuition fees, housing, food, and transportation.
Student loans in Finland are given to younger people due to the absence of parental support. They face financial problems and are unable to finance their studies. A student loan allows them to face their studies without working. Although, they will need to pay back later in the future when they start working.
However, the interest rates of some banks in Finland are very high, which leave them with the option of borrowing loan online or through crowdfunding. An online student loan is the best if you’re contemplating studying in Finland. They offer minimal interest rates, faster approval, and low documentation.
Business Loan In Finland
Business loans, as the name implies, are loans given to entrepreneurs who own small to medium-scale enterprises. Individual lenders such as banks and financial companies give out business loans to individual borrowers to start or expand their businesses.
Due to the high rate of rejection by most banks in Finland, most Finnish have turned to P2P and online applications to secure business loans in Finland. The lending of loans to SMEs in Finland has increased since 2017. This means applying for business loans in Finland can be approved within a couple of business days.
Finnish Credit Cards
Application for credit cards in Finland varies widely between banks and even branches of the same bank. However, if you are a citizen or have been living in Finland for some years, then you shouldn’t have trouble applying for a Finnish card.
Also, if you are self-employed in Finland, you might not have a regular income. So when applying for a Finnish card, you might be asked to provide your company loss/profit statements for some years. If these look promising, then you are on your way to becoming a credit card owner.
However, one other option you might want to try is to pay the requisite funding as deposits to the bank. These deposits will have to be three times the amount of the credit limit for which you are applying, and will be held by the bank for 3 years.
The interest rate for credit cards as of 2020 was put at 4.71%. Credit cards are good when you need cash, but for reasons such as a home, a car, a house, etc. a specific loan is required.
What Documents Do I Need To Get A Loan In Finland?
While each financial companies and banks have its specific requirements for loans; there are some basic requirements you must have for your loan to be considered. In the absence of any of them, your loan application may be delayed or rejected. They include:
- Finnish Social Security Number
- Tax return (Veroilmoitus)
- Most recent payslips.
- A steady annual income of at least €12,000
- Minimum age of 20 years
- Have a registered permanent home address.
Although in Finland, you might be considered if you’re unemployed for allowance or rehabilitation benefit. It all depends on the requirements of each individual.
Also, if you don’t have a permanent address, your application will be rejected without consideration. Having a permanent address is a prerequisite for obtaining a loan in Finland.
Reasons Why You Need A Loan In Finland
In Finland, you need loans for many things. Whether you need a new car or a house to sleep on, there is a loan for everything. Below are some major reasons why you need to consider taking a loan today.
Loan For Medical Emergencies
No one plans for sickness or disease. But there can be a time when a major health concern threatens the life of our loved ones. Where there are no savings, applying for loans becomes necessary. Many online loan platforms make loan applications easier and faster. You can get your loan approved within minutes compared to traditional banks.
Loan For Home Renovation
If you intend to buy a home or have a home renovated; a home loan in Finland is all you need to get started. Most online loans can be gotten with no collateral. This way you can be able to repay the loan instrumentally. Also, you can become a homeowner or share 20 to 30 percent equity with lenders.
Loan For Wedding
While we don’t recommend borrowing for a lavish wedding; a private or personal loan can help you achieve that desired honeymoon. A private loan is ideal for this situation as you’re required to pay it back in cash. Also, you can ask for a credit card, but the interest rate for credit cards in Finland is very high. An online loan application can help you achieve your dream wedding.
Loan For Funding A Big-Ticket Purchase
In Finland, you can request a loan to buy a new washing machine, refrigerator, laptop, or television. You might also need a loan to buy a new car. You’re free to request a loan from the bank and other financial institutions. However, online loan applications are quite faster and easier as you don’t need any documentation to get started.
Loan For Business Expansion
If you’re thinking of expanding your business in Finland, a loan application is all you need to get started. Most startups and SMEs in Finland utilize the power of business loans to start a new business and expand existing businesses. You can apply for a business loan online with little to no collateral or paperwork. Also, you’re not bound or restricted on how you spend this loan.
Best Banks For Taking A Loan In Finland
Nordea Bank is one of the best banks in Finland that offers a range of banking services which include investments, savings, current accounts, loans, and assets management. They help to provide consumer loans such as housing loans and student loans to Finnish citizens. They are well-known in Finland for their banking services.
Whether you’re planning to buy a new home or a car, Nordea bank has got a loan that will suit your needs. Also, you can make your loan application online to get your credit decision within minutes. Nordea bank offers loans between the range of €2000 to €50,000. They also have credit cards for small and big purchases.
OP bank provides loans to those who want to buy a car, a home, or a holiday cabin. They also help youngsters with students loan and housing in Finland. They provide from €2000 to €50,000 without collateral or guarantor. Furthermore, they also offer flexible payment plans to those who took a loan from them.
Some of the requirements OP banks watch out for include but are not limited to regular income or pension, the ability to pay back the loan, and no payments default records. If you know you meet this requirement, then you try and apply for a loan. Furthermore, whether you are a customer of OP bank or not, you can apply for a home, car, or student loan.
Danske Bank is one of the fastest-growing banks in Finland. They provide numerous banking services to their customers. They also have specific loans that are geared toward the needs of a Finnish citizen. Some of the consumer loans offered by Danske Bank include a car loan, holiday loan, overdraft facility, and advisory services.
They help consumers in Finland purchase goods and services and help them schedule a repayment plan that matches their current financial situation. They as well provide an overdraft facility with a credit limit based on the account type you operate with them. Furthermore, they are also one of the best advisory companies you want to identify with when it comes to taking up loans in Finland.
Handelsbanken is also one of the fastest-growing banks in Finland that provides home and private loans to Finnish citizens. If you’re looking for mortgage loans to help you secure your next house or building, then Handelsbanken is all you need to get started. They can also help you find a new home and renovate existing ones.
Also, they provide private loans to those who need cash or are in critical financial situations. They offer car and leisure loans to customers. In addition, they provide credit cards that you can use anywhere in Europe. So if you need a home or private loan; your first stop should be at Handelsbanken. They are registered in Finland, just like the other three above.