Loans in Finland explained
Finland is known to have the best life quality, education, and healthcare system, so people worldwide want to move there. However, the banking process can be hectic for a newcomer when shifting countries. There are many types of loans in Finland for which people can apply if they have a good credit score. If you are in Finland and want to apply for a loan, we have made this guide to help you choose the right loan according to your needs and the process that must be done.
TIP: when you land on a website of a Finnish loan provider, make a right mouse-click anywhere on the page (Only works with Google Chrome browser!). A small dropdown menu will appear and then it will say; “translate this page to English” (or any other language).This will make it better understandable and easier for you to make the right decision!
List of loan providers in Finland
All these loans providers offer different rates and options for different prices. Comparing the specifications of each loan provider can be time-consuming. Are you wondering which provider offers the best deals or the best options? We have listed the most reliable loan companies below while using the following criteria:
Be aware that Borrowing money costs money
|
|
|
|
|---|---|---|
|
 |
FerratumBank offers a user-friendly online platform that allows you to conveniently apply for loans and manage your account remotely. This is especially beneficial for expats who may not have easy access to physical bank branches or prefer digital banking services. |
|
 |
Sortter.fi provides customer support and documentation in languages other than the local language (e.g. select English in the top right corner). This can be particularly helpful for expats who may not be fluent in the local language. |
|
 |
Capitalbox usually offers a streamlined and convenient loan application process. They may provide an online application platform, making it easy to apply for a loan from the comfort of your home. Capitalbox aims to process loan applications quickly, providing a prompt response to borrowers. |
|
Why Get A Loan in Finland?
When thinking about the type of loan best for you, the reason to get a loan in the first place is essential. There are several essential reasons for getting a loan in Finland, such as wanting to make a big purchase, go on a car, or go on a special holiday with your family.
Whereas you may also be under other debts; in other words, you may want to put together the loans into one, and it can be the best way to bring down the interest you will pay every month and make it simpler with just a single payment to consider. It is necessary to consider the drawbacks of online loans in Finland; for example, it may mean that you may end up paying more in the long term due to the length of the loan.
Different Types Of Loans in Finland?
We will tell you about Finland’s different types of main loans and where you can learn more about them.
- Personal Loans (Unsecured Loans)
Personal loans are also called fast loans in Finland, allowing you to borrow relatively small amounts for your needs. Many people get personal loans to spread the cost of the bigger purchases. You will not have to use an asset as collateral; in other words, it may mean less risk for you. However, since the banks giving this loan will be at risk more, borrowers will have to go through credit checks and should have good credit scores. The interest rates are also higher.
- Secured Loans
Secured loans will still be suitable if you are confident about the payment schedule. Collateral reduces the risks for the lender. Hence, you can get higher loan amount with low interest, even if the credit score is lower. If you want to apply for a housing loan in Finland, you must give something as collateral.
Interest Rates On Loans
Online loan comparison will provide insight into the customer credit options available in Finland. It will help you make informed decisions and allow you to digitally apply for easy loans in Finland. With the comparison, you can find the best loan type according to your needs.
The trend of interest rates on consumer credit has risen over the years. The average interest was 4.71% in 2020, compared to 4.07% in 2017.
The trend of interest on housing loans has declined over the years. The average rate was 0.89% in 2020 and 1.12% in 2016.
The trend for other types of loans, such
Finnish Credit Cards
As in any country, the recent migration can make getting credit difficult until they have established a significant bank account and steady employment. Applications for credit cards tend to appear vary from bank to bank, as well as branches of the same financial institution.
If you have been living in Finland for a long time enough to establish an appropriate credit rating and have a regular income, you will not have to go through the hassle of getting a credit card.
Many people wonder how to get good credit if banks do not provide loans. A regular income can go a long way in making you a viable risk, and long-term residency will also work. However, getting a significant sum of money in the bank account does not necessarily guarantee approval for the credit; you will have to ask.
Conclusion
This is all the necessary information about loans in Finland and the interest rates you must know. If you haven’t moved to Finland yet, you should learn about the different banks that are in Finland and choose the one that offers the needed amount at the least interest rates.
FAQs
Who can apply for a loan?
Anyone can apply for a consumer loan; if you are in Finland and over 18 years old and are eligible to pay off the repayment, you can easily apply for the loan.
How long do loan applications take time to process?
Every loan application is online; with this, every process is done almost immediately.
How are interest rates calculated in Finland?
Every customer gets a customized loan plan, which already has an interest rate calculated for the customer. You can learn about the interest rate by filling in the loan application.