About Finnish loans

Anyone considering applying for loans to cover their financial needs should keep in mind that this economic figure is more complicated than it might seem. Fast mini-loans and loans via the Internet have been added to the traditional ones for banks to offer the user a wide range of financial products that can be adapted to any economic needs of their customers in Finland.

What are loans?

When a user requests a sum of money from a certain financial institution with an obligation to repay it within an agreed period of time, he requests a loan. This transaction is executed in the form of a contract signed by both parties, which also reflects the terms of payment and interest payable in accordance with the requested amount.

Types of loans

Currently, many types of loans can be requested, depending on how the money received will be used and from the financial institution that is going to provide them. It is important to know them in order to understand which one best suits the applicant's financial situation.

Personal loans

These are the ones that are requested by individuals to meet specific economic needs, such as repairs or travel. They are never high and therefore have a fairly short return period.

Consumer loans

Consumer loans, closely related to personal loans, are requested by individuals to finance the purchase of consumer durable goods. It is usually requested when buying cars or large household appliances. Like personal ones, they are not too overpriced, so they can be returned in a relatively short time.

Student loans

More and more people are going to study outside their country in order to expand their education, which implies significant financial costs. Student loans are designed so that they can finance their studies in the best economic conditions with low and easily accessible interest rates.

Housing loans

These are loans intended for buying real estate or starting a business. They differ from personal ones in that they assume the use of the house as collateral. That is, if the money is not returned within the specified period, the bank becomes their owner.

Quick loans

The emergence of new technologies has made possible the emergence of online lenders in Finland, not directly connected with banks, but with financial institutions that operate on the Internet and offer online loans and quick mini-loans.

This is a quick and convenient way to get the money needed to cover a specific need, although it should be remembered that they offer smaller amounts than banks and with a relatively short repayment period.