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Loans in Northern Europe
Mortgages are loans that you take to finance the purchase of a home. You can borrow up to 80% of the value of your home with a mortgage. You have to finance the rest yourself. Few have several million in the bank book, so most often they take out a mortgage to finance the purchase of a home.
Bank loans come in several types, but they all usually borrow money in partnership with their bank. Therefore, your bank must give the green light before you can borrow money. To do this, you will be carefully assigned a credit rating.
Fast loans are “fast” loans that you can get from a lender. They are usually designed for a period of 1 to 3 months and therefore must be repaid before that. Fast loans are often small amounts, on the order of DKK 500 to 5000, and you do not need to provide guarantees. Thus, you cannot use a quick loan to pay your home. Fast loans often have incredibly high annual rates and interest rates, and therefore are very expensive loans that should be avoided or repaid very quickly. The only advantage of a quick loan is that it can be obtained very quickly and without answering too many questions.
How to get a loan in Finland? Personal credits are part of the “family” of quick loans, as they are also easily and quickly obtained on the Internet without collateral, but usually with an extended range of questions for a deeper credit assessment. Consumer loans are also issued for a much longer period, in fact, up to 15 years. Since they have a much longer maturity period than fast loans, they also have lower annual rates and interest rates, and in some cases can be as cheap or cheaper than getting a bank loan. However, most often this is the exception, not the rule.
What criteria must be met in order to receive a consumer loan?
The criteria that you must meet in order to obtain a consumer loan vary from provider to provider. However, first of all, you must always meet the age limit of 18 years if you want to take out a loan. Also, some lenders require that you do not have active debt collection cases. This is due to the fact that only a few lenders offer loans to clients with poor solvency and often this requires you to pledge something of value.