Process of applying for loans in Sweden

Generally not so many people fancy loans, especially those dangled and issued by predatory lenders. But something outstanding about Sweden and loans available for borrowers is that their main aim remains to help residents have a good life. Anyone who cares to check in details the property and wealth that people in Sweden have will realize that most of them, especially the expensive ones are thanks to loans.

Some Swedes have a negative attitude toward debts, yes. They believe that the interest rates charged on such loans risk putting them in financial struggles. But even then, the reality dawns on even the restraining ones that taking loans in Sweden isn’t one can completely ignore.

Good and well paying jobs that Sweden prides itself of for everyone alone does not make people immune to situations that money becomes inadequate. The comparably high cost of living in Sweden leaves most residents with limited choices about taking consumer loans, mortgage and other forms of borrowing. Therefore, it would be in the interest of many to understand the process of applying for a loan in Sweden before visiting a bank or lending institution.

All about loans in Sweden

Recently, the most worrying concern in Swedish economic stability is debts linked with household loans. Despite its healthy economic status, the rate at which locals take mortgage loans is wanting. Many Swedes prefer building their own homes to renting houses that are equally pricey and rate to get.

Natives and expatriates can get loans in Sweden

It is good to know that both locals and expatriates can acquire loans in Sweden, only when they qualify. For ex-pats, you must be a resident first before anything. Then both locals and residents must be 18 or 21 years old and should be earning regular pay. To prove the two, you will show your ID card and a pay slip. Just to be on the safe side, stay put with a good credit report, it may speak on your behalf to the creditors.

Although not all loaners use UC credit, those that insist on it, really do a thorough credit check. Mostly, the ones that never use UC will require private property for security or maybe a guarantor in case they default on the loan. Another is a Swedish bank account that will never miss the loan checklist. After knowing the requirement you are free to go by the procedure below to get your loan.

Step-by-step Guide for Applying for a Loan in Sweden

Due to advance IT in Sweden and other Scandinavian countries, the use of smartphones to get online is as simple as ABC. Nowadays financial institutions have embraced the e-banking and simplest ways of getting loans online as below,

Provision of basic information

The first process when applying for a loan in Sweden is providing basic information. You are required to feed in your details, things to do with the name, age, contact, and city of residence. On that very same page, you will provide your employment type together with your monthly payments. What follows is a message on your handset to verify and authenticate your mobile number.

Checking through the lending quotes

Once you are done with step one, there will be a display of the maximum amount of money you can borrow. This is the second process to consider when applying for a loan in Sweden. You will then need to confirm your preferred loan amount and the repayment tenure. To check on the interest rate or EMI schedule or even processing fee if there is one, click on change.

Congratulations; your loan applied for has been approved!

Besides, a big show of suchlike information will appear instantly, so you will only scroll down and read. The moment you click on ‘apply’, you are confirming to take the loan and the repayment schedule. You will then proceed to the online application process, which is damn wide, let’s see to it.

Online application process for loans in Sweden

After quick completion of the initial steps of verification and understanding of the repayment nature, you will start on the loan agreement. First, you are likely to provide extensive personal information as you did in the first step. However, the same page demands that you choose your purpose for the loan whether personal, car, or study loan. It is simple because there is a drop-down to help you through.

Like before, you will redo the employment details but this time with additional information on the address of your workplace. Do not forget that this page is a bit detailed to know your type of work and your monthly income as per ITR. It is compulsory to select your document type to prove your income, so vital of all.

Here’s your applied for loan in Sweden

Identification is quite critical here, so an ID or birth certificate can do. Remember to fill in your PAN number because it is a requirement too. If you are done with the lengthy procedures, just click on ‘submit my application’.

The closing step requires that you save the reference number. It is you to select a slot for a Standard Chartered representative, who will pick up the essential documents. After then, your physical form and documents will be picked up for verification. Once the process is over, the loan is deposited into your savings account ready for use. Still, a common question bothers many debtors who wonder what may happen if they delay returning the loan. Let us shed some light there too.

The consequence of a late loan repayment in Sweden

For delayed payback of the loan, the so-called penalty fees will be added on top of the interest plus the amount borrowed. This one case has landed many into a debt cycle given the huge amount they end up paying after such penalties. That too may call for an exercise of sanction by the creditor under the loan agreement. But you’d better repay the delayed loan than a total default because it is much more ruthless.