Money is an intricate part of the world’s economy. The trading and borrowing of money is just as important as commerce is an important aspect of economics and society. So how do you get money? You can get it from a job, through stock purchases, or better yet, withloans.
What is a Loan?
A loan is when the bank extends a cash offer to the person to the borrower, or the person that asks for the money. In exchange for said money, the borrower agrees to pay it back along with a specified interest rate over the course of a set loan term. This usually comes in the form of monthly payments until the time the loan is paid off. These loans can be pretty relaxed or stringent, it usually depends on the amount of money borrowed, along with the payment plan. There are different types of loans of course, but the one I want to go into particular detail about in this article is a personal loan.
What is a Personal Loan?
A personal loan, is a loan without collateral or a valuable asset that the borrower offers as security for the money borrowed (see more about collateral here). Since banks take a much higher risk by lending the money as opposed to collecting it, it involves a much higher interest rate level than other loans. This is a more stringent method of paying back the money owed.
What is a Consumer Loan?
A consumer loan has much in common with a personal loan.There are some differences however, one beingthat the former includes revolving credit and are usually open-ended transactions. Consumer loans also include a certain way that the money must be spent, as it can’t be spent on anything else save the reason for borrowing the loan i.e., college tuition or home mortgages.
They are not offered to businesses or companies, rather they are instead offered to singular individuals.
There are of course other kinds of loans, and those loans like the others require payment and interest for a certain period of time. So, knowing all of this, you may be asking what loan is best for me to take out? How much or how little can I afford to take out? That’s a question that may be tough to answer, but thankfully there are tools that can help you do so. And one of those tools is tests in consumer loans.
What is Consumer Loan Testing?
Now don’t worry, there isn’t anything to study for. These “tests” are actually just a ranking of different banks’ interest rates and fees across the world from sites such as billigeforbrukslån.no/best-i-test-forbrukslån/ .
The ranking can also be affected by other aspects such as special services or discounts to customers. Other factors to take into account include the banks’ minimum requirements, effective interest rate (EIR), the available loan amount, the repayment period, fees, and the overall assessment.
What Does the Test Entail?
- Banks’ Minimum Requirements– the minimum requirement for banks includes an age limit. Most banks require applicants to be at least 18 years of age to apply for consumer loans. There are others however that require applicants to be 20-25 years old instead; it varies depending on the bank. Another requirement is your annual income, which must meet a certain level to be considered.
- Effective Interest Rate– the EIR is something else taken into account when assessing the interest rate a bank can offer you. It is their nominal interest rate level which includes fees on a consumer loan. This can help you compare different banks’ effective interest rates which in turn will find you a loan more suited for you.
- Available Loan Amount– banks can offer different loan amounts depending on the company. You can borrow anywhere from 10,000-600,000 NOK ($923-$55,400) on a consumer loan. But as I stated before, it really depends on the bank.
- Repayment Period– The amount of time you allow the interest to accrue on a consumer loan is crucial toits total costs. Today, the maximum repayment period on consumer loans is set at 5 years. If you decide to go with a shorter repayment period, you can end up saving a lot of money.
- Fees-the fees are one of the most important things to navigate when finding the loan that’s best for you. Some banks have high fees, which make them more costly when paying monthly amounts than those that offer lower fees.
Now that we know what the consumer loan test entails, we can go over some of the best deals when looking to take on a consumer loan. There are a great number to choose from, but don’t be overwhelmed, as the information is easy enough to take in.
Best Consumer Loan Deals
- Uno Finans
Loan Amount-10,000-600,000 NOK ($924-$55,000)
Effective Interest Rate- 5-24%
Minimum Age to Apply- 20 years old
Income Requirements- 120,000 NOK ($11,000)
Advantages-one of the largest companies of Norway in terms of loans, works with some of Norway’s largest banks, quick application processing, great customer service with an open hotline.
Disadvantages-relatively new
Summary- One of a very few numbers of loan brokers, Uno Finans allows applications from those who have payment notes. They deal with several of Norway’s biggest banks and can offer you EIR starting at 5%. They offer not only consumer loans, but also mortgages and refinancing. Though recently established, Uno Finans is one company to consider dealing with.
- Lendo
Loan Amount- 10,000-500,000 NOK ($924-46,000)
Effective Interest Rate- 5-28%
Minimum Age to Apply- 20 years old
Income Requirements-120,000 NOK ($11,000)
Advantages- high number of loan offers, great customer service, fast-application processing, low interest rates
Disadvantages- little to no variation in types of loans or banks
Summary-A loan broker that deals in unsecured consumer loans. Lendo is a company that is part of the Schibsted Group which owns several nationwide newspapers. They are one of Norway’s best loan brokers with extensive experience in the subject of money and loans.
- DigiFinans
Loan Amount- 25,000-500,000 NOK ($2,300-46,000)
Effective Interest Rate – 5-30%
Minimum Age to Apply- 20 years old
Income Requirements- 120,000 NOK ($11,000)
Advantages-higher number of partner banks, can provide up to 19 loan offers, possibility of low EIR, great service
Disadvantages- Minimum loan amount required is 25,000 NOK ($2,300), relatively new
Summary-DigiFinans is more of a recent addition to the business. But their experience isn’t the only thing that’s green, as they are quite successful in their own right. They help to find affordable consumer loans and refinancing loans in most other Nordic countries. With as many as 19 banks that they represent, which accounts to over 60% of banks in Norway, DigiFinans is a company that has plenty of money to offer.
- Santander Consumer Bank
Loan Amount- 10,000-350,000 NOK ($924-32,200)
Effective Interest Rate- 8-29%
Minimum Age to Apply- 23 years old
Income Requirements- 200,000 NOK ($18,400)
Advantages-favorable interest rates, low monthly payments, no establishment fees on small loans
Disadvantages-higher than average age requirement, high term fees for loans that are over 70,000 NOK ($6400)
Summary-Santander Consumer Bank is owned by Banco Santander, one of the world’s largest money lenders. They offer not only loans, but also savings, credit cards, discounts and much more. In their Norway office by itself, they have over several hundred employees, all of which have a specialization in the consumer finance market.
- Motty
Loan Amount-25,000-500,000 NOK ($2,300-46,000)
Effective Interest Rate- 7-33%
Minimum Age to Apply- 23 years old
Income Requirements- 230,000 NOK ($21,200)
Advantages- offers from a wide number of banks, intermediaries’ loan with payment notes, great customer service.
Disadvantages- higher than average age requirement, higher than average income requirement
Summary- Motty has dealt in consumer loans and refinancing loans since 1985. Known formerly as Telefinans, this company can have offers from over 21 different banks. They place a large emphasis on customer service, which is well known for providing quality service with great communication and openhours.
As I said before, these are just a few of the companies that deal with loans. And as you can see, their offers are wide and varied. It really fallsto you to find the deal that will help service you the best way possible.
The way to do that lies with the best consumer loans test. It’s a great tool for finding the deal for a loan that’s best for you and your financial situation. It gives you useful information when navigating the market and gives you the affordable and best offers you can find.
Conclusion
So, with the information and tools at hand, it’s time for you go to out and find the deal for you. Whether it comes to financing, age requirements, EIR, or the amount of money you can take out, the best consumer loans test is sure to help you when deciding from the vast number of companies and offers out there on the table.
