When Norwegians students or individuals run out of cash, they turn to Norwegian lending companies, apply for a loan, get approved fast and use immediately the money for personal use such as buying new gadget or paying off bills.
For Norwegians, forbrukslån are the easiest loan to apply. A consumer loan does not need collateral in order to get approved since it is considered as an unsecured loan. The interest is also low and charges are relatively small compared to other types of loan like house or auto loans. The application process is also easy and with less hassle. It is approved fast and the money is released immediately. With less waiting period, consumer loan is the easiest way to get off with pressing personal cash needs.
In Norway, the prevailing interest for loans without collateral ranges from 10% up to 30%. Each lending company has its own way of calculating the interest, which is dependent on the amount of money borrowed, how long the repayment schemes and how much the borrower can pay off the loan on a monthly basis. All of these would affect the interest as well as the monthly charges on an approved loan.
Norwegian Lending Companies can approve a loan from 10,000 Norwegian Kroner up to 250,000 Norwegian Kroner. Some companies can even loan an individual up to 350,000 Norwegian with prevailing market interest. This is the reason why it is smarter to get a loan up to 350,000 and pay the same interest rate for a smaller loan.
In order to bolster the economy, the government has seek ways in reducing the borrowing costs creating more easy steps to get loans through consumer or personal loans. However, it is also doing rounds of information campaigns for people to fully understand the risks of consumer lending. The government has also worked hard in reducing inflation for the sake of bringing down loan cost and it gives incentives to banks and lending institution to bolster the economy.
Norway lending companies in order to avoid loan defaults do background checking for their borrowers. This background checking is their safeguard and way of measuring up borrower’s capacity to pay back the loan. While some may have extreme background checking, others are more lenient and apply simple background checking means to their borrowers.
With or without background checking, consumer loan is still the easiest to apply and get approved of. As long as you are of legal age, employed and do not have any bad repayment record, you get can apply for a loan and use it in any way you like.