The growing loan market is visible among the competition. There are constantly new lenders offering private loans and alongside them, even comparison services (so-called loan intermediaries) that help clients find a cheap loan.
What you borrow
The money borrowed will mainly be used for car purchases, motorcycles or holiday trips. This group accounts for close to 20% of borrowers and is the three most common reasons for taking out private loans. About 5% of the borrowers want to borrow money before renovating the home or summer cottage. Other things include home decor, shopping, parties, boat and wedding.
Another difference is that the Swedes choose to borrow smaller amounts than before and not just ahead of larger investments. This is probably due to the positive interest rate situation and the fact that the loan can be raised over several years, of which the monthly cost will be very low.
How to borrow money
The survey shows that half of those who are considering borrowing money will try to do so through their existing bank. This can be considered a bit strange as the market is flooded by lenders and loan intermediaries, who may very well offer even better terms than any of the major banks.
Today, there are a plethora of lenders competing for customers and offering private loans and loan loans at good interest rates. If you want to compare someone else to one, you can use a loan broker. It is a free service that allows you to apply to several different lenders, usually up to 30, with a single application. In addition, only one credit check is applied when applying. Then you can compare the different offers yourself.
The benefits of a private loan
The advantages of a private loan are that you do not have to wait very long for the money. It is easy to apply and normally happens online. The application is processed quickly and often you have an answer already within a day, and shortly after that the money is paid out.
Another advantage of private loans is that you do not need to provide any security for the loan. When you borrow for a home, the home itself becomes the security, and the same goes for car loans where the car stands as collateral. Private loans are based only on your current financial situation, and you can lend money to whatever you want completely without collateral.
The disadvantages of a private loan
Although the private loan may feel like a savior in times of need, it must be borne in mind that longer credit has negative consequences for creditworthiness. If you plan to buy a home shortly, for example, you should avoid taking out a private loan. Furthermore, you should never borrow more than you need and what you can pay back without any problems – sms loans and private loans are one of the most common reasons for customers to end up with the kroner.