Loans in Sweden

How to get a loan in Sweden

Loans today are one of the de facto methods of acquiring money for purchases. Gone are the days when applying for a loan seemed tedious. With the swift execution of services and hundreds of financial institutions at your disposal, getting loans has become more accessible.

Most of the time it is seen people use an unsecured personal loan to pay off a debtor secure large purchases. Although applying for a loan is much smooth nowadays, there are several things to keep in mind. Let us discuss what all shall ex-pats have when applying for loans in Sweden.


Loan calculator

So, what are the best loan providers in Sweden and which of them offers the best terms and conditions? We have listed below the most frequently used providers in Sweden.

Be aware that Borrowing money costs money

Interest Payment Period
Lendo.se 2,95 – 29,95 % 12 – 180 mths
Axofinans.se 2,95 – 26 % 12 – 180 mths
Banknorwegian.se 4,99 – 22,99 % 12 – 180 mths
Enklare.se 2,95 – 5,95 % 20 mths
Lendify.se 2,95 – 17 % 12 – 180 mths

Personal loans explained

What is a personal loan?
We all know that loans are one of the most effective ways of getting financial help. But to find which loan is best for you, it is better to know about the different types of loans first.

Personal loan
A personal loan is a type of unsecured loan that the borrower repays in monthly installments. These types of loans are not backed by collateral and are usually taken to cover personal expenses.

Most of the time, when you apply for a personal loan, the financial institutions such as banks and lenders are seen considering factors, such as credit score, credit report, and debt to income ratio.

What is the expected rate of interest for a personal loan?
As discussed earlier, the interest rate for a personal loan is directly dependent on the credit score. If a borrower has a score of 690 and above, he/she is entitled to the lowest rates and higher amounts. On the other hand, people with high credit scores will have to pay a more significant interest rate.

What are the points to remember while applying for a personal loan?

  • Check your credit score beforehand.
  • Compare the options like interest rate and the overall time.
  • Find a co-signer while applying for a personal loan.
  • Consider a secured loan.
  • Access the overall financial health to settle the debt easily.

How has corona virus impacted personal loans?
The corona virus crisis has thrust moneylenders into a significant crisis. While some have introduced small-dollar loans to people dealing with financial loss, other lenders have become strict with the requirements. However, other people are allowing to defer loan payments for a specified time.

What are the points to remember while applying for a personal loan?

There are many reasons for getting a personal loan, some of which are mentioned below:

  • Debt consolidation for paying off the debt
  • Using the loan amount to cover personal expenses
  • For covering significant expenses like weddings, etc

How to Pick The Best Personal Loan?
The best way to compare personal loans is by checking out the rates offered by multiple lenders. The loan with the lowest APR is the least expensive and the best choice. If you have a good credit score and a healthy relationship with the bank, it is worth checking out the options available there. In this way, you can secure the best personal loan for yourself.


What are the different type of loans?

1. Car Loan:

A car loan is a secured type of loan used for buying a car. Although it can be taken under the category of personal loan, there is one significant parameter to remember. If, by any chance, one is unable to pay off the debts of a car loan then, the vehicle will be confiscated.

1. Car Loan:
A car loan is a secured type of loan used for buying a car. Although it can be taken under the category of personal loan, there is one significant parameter to remember. If, by any chance, one is unable to pay off the debts of a car loan then, the vehicle will be confiscated.

2. Home Loan:
A home loan is an amount that is borrowed from banks when buying a home. The home loans are further divided into four categories which are home purchase loans, construction home loans, land purchase loans, and home repair loans.

3. Student Loan:
A student loan is money borrowed from a financial institution for paying the college fees, books, tuition, room, and other expenses.


FAQ about loans in Sweden

A personal loan is simply the amount of money borrowed from a bank to pay off a personal expense. This type of loan is repaid in fixed monthly installments. Usually, if your credit score is good, the bank charges a low rate of interest for the amount.

Payments on the loans are usually calculated by considering the overall amount you have to borrow. Some lenders or financial institutes also check the APR (Annual Percentage Rate) before giving the sum in a fixed monthly payment.

A loan calculator is a virtual device that calculates monthly installments for you. All you have to do is enter the principal amount, rate of interest, and the total number of years; it will give the exact amount to be paid over the years monthly.