If you are looking for a private loan, it is very important that you keep track of the terms and conditions that apply to the loan. If you are not aware of this, there is a risk that you will receive unexpected surprises during the loan period.
The loan terms say everything from who gets a loan
What it costs to tell what happens if something strolls along the way. On this page you can find some things that the lenders usually include in their terms for private loans. Keep in mind that this is just a summary and that they often exist more, so see what we write as a guide not something else.
If you decide to borrow then always read the terms of this lender before submitting an application. Who can borrow – The lender always writes the rules that apply if they are to approve a loan application. Common rules are that you must be at least 18 years old, be written in Sweden and have a certain annual income.
The income required for a private loan is usually somewhere between SEK 100,000 and 150,000. Then, because you meet these basic requirements, there is no guarantee that the lender will choose to lend you money as they do a credit check that may come up with something else. You can also read the rules that apply to any payment remarks here. The big banks are the ones who write least about their requirements on the borrower, but if there is nothing, you can expect that these basic requirements are about the same.
How much and how long can you borrow?
Private loans usually lie somewhere between SEK 10,000 and 350,000. The loan period you usually choose yourself and you can usually choose somewhere between 1 and 15 years. There are basically two different types of companies that lend money in the form of private loans. It is partly those who only focus on smaller loans that have a maximum amount of around SEK 30,000. Then there are the slightly larger lenders where the big banks are included that lend all the way up to SEK 350,000.
Fees and interest rates – In the terms, you should be able to clearly read all the lender’s fees and what interest rates apply. If you feel something is missing, you should definitely ask a question about it before proceeding.
Amortization – How your loan is paid off, you can of course read about. If you do not know the various forms of amortization, you can visit our page about this. Read more about amortization. The form of repayment will affect your monthly cost and the total price of the loan.
Delay rate and delay fee
There is always a risk that you will miss paying when you should. What happens then you can also read in the loan terms. Generally, there will be quite a lot of extra costs if the loan is not paid as planned.
Early redemption – It is always good to know what applies if you would be able to repay the loan early. Of course, this is also evident in the loan terms. Normally for private loans, it is no problem at all to settle a loan early without any extra costs. But this is still best to examine yourself before applying.
These were just some of the most common conditions that the credit institutions have. Be sure to read them carefully before deciding to submit a loan application.