We compare interest rates on consumer loans – Payday Loan

The fact that there are a lot of different names for different types of loans is a known fact. To make it even more complicated, it is often the case that many different names are used to describe similar types of loans. Consumer loans are exactly such a thing as they are really the same as a regular private loan.

Private loans, also called bank loans or bank loans

Private loans, also called bank loans or bank loans

If one chooses to use the word consumer loan, it literally means that the money borrowed is to be consumed directly. For example, you might want to buy some furniture or something completely different and need to borrow money for this. What you want then is a private loan, but since the money is to be consumed directly, it is sometimes called a consumer loan.

If you look in Norway, for example, it is common for them to use the word consumer loan to describe private loans. A word that quite well corresponds to our consumer loan and a word that would have been better if it was used more often here in Sweden. It clearly shows what a loan is. The word private loan does not say very much really.

Unsecured Loans

money cash

Since the money is to be used for consumption and normally by things that are not directly existing such as a house, it is the question of a loan without collateral. This means that you can use money for anything but the interest rate will be a little higher.

Since the loan is unsecured, it is not possible to borrow a lot of money, but the usual thing is that you can borrow SEK 10,000 – 350,000. However, this should not be a major problem as there is often no more money than you need to borrow.

As usual for all loans, it is important to meet the lender’s requirements, which are often not particularly tough but generally require an income of just over SEK 100,000 per year if you want to borrow. If there are active payment notes, there is a great risk that the lenders will refuse an application, but this is not certain as there are some lenders who do not automatically say no.

 

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