This is a bit different for different types of loans.
All about loans
For example, mortgages, car loans, building loans, down payment loans and mortgage loans can only be taken if you have to do special things. Other loans like private loans and micro loans can be used for whatever you want.
How much can I borrow?
This also depends on the type of loan you are applying for:
Micro loans typically range between USD 1,000 – 5,000. but today there are also many lenders offering larger loans which can extend up to about USD 15,000. In some cases you can also borrow USD 500.
Private loans are usually between USD 10,000 – 350,000. There are some lenders who offer lower denominations and then the loan can start at eg USD 1000. Recently, small micro loans have also become more common where you can borrow for example USD 1,000 – 30,000. Some players, lend up to USD 400,000 to two m.
Loans with collateral such as car loans and mortgages can be much larger. For example, a home loan can be worth many millions as it is the house you buy and your personal finances that control the size of the loan. Such a loan has a part called a mortgage loan, which is the part that has the home as collateral and it can amount to 85% of the value of the home.
How long does it take for the money to be in the account?
For a quick loan that is approved, for example before 13:00 on a weekday, the money will usually be in the account on the same day. If you get approved later, it may take until the next weekday. If the application is submitted after closing, the lender is processed as soon as the lender opens again and if you for example apply on the weekend it may take until the Monday after.
A private loan can often take a little longer. With a little luck, the money can come in the same day, but the best thing is to expect that it will take a few days after the application is fully approved. You will usually receive paper that you need to sign and submit. These loan documents must be signed and found back to the lender before they pay out any money. In some cases, you can borrow with E-leg or Bank ID, which speeds up the process.
For a secured loan that is applied for on time, the money will be available when the purchase goes through. .
How do I get my money?
The most common option is that you get them directly into your bank account that you specify. Another option is that you get a payment slip sent to you that you use to get your money out.
What is an annuity loan?
If you have an annuity loan, this means that you pay an equal amount each month to the loan institution. This sum should cover both the interest rate and the amortization. This means that at the beginning of the loan period, you will largely pay only interest. When you repay more and more on the loan, the percentage of interest each month becomes smaller and the repayment goes faster.
What does it take to get a loan?
In order to borrow money, there are a number of basic requirements that apply to all different types of loans. First, it is required that you are of legal age and written in Sweden. What then differs is a little what the requirements of the credit institutions are when they carry out the credit check.
For a micro loan, it can often be that the borrower is at least 20 years old, but there are also loan institutions that offer loans to 18-year-olds. Furthermore, there are often no particularly stringent requirements for annual income, but less income can be enough to borrow money. The rules for payment remarks vary greatly. Some say the opposite to applications from people who have it, while others can approve such applications if the economy is otherwise ok.
If large loans such as private loans and mortgages are raised, the requirements are also tightened, since it is about much more money. For example, a private loan often requires an income per year from USD 120,000. Payment remarks can also be tricky here, since all major banks in principle always say no to applications from people with remarks.
For mortgages, of course, you must also have an existing home to lend or be on the road to buy a home that can be used as collateral for the loan. When it comes to private loans, it is a unsecured loan and no such thing is needed.
What is a co-borrower?
A co-borrower is a person with whom you share the responsibility for the loan. Should the borrower not be able to repay the loan, the lender may contact the co-borrower for payment. This means that you should only become a co-borrower to someone else if you trust that the person has sufficient finances to manage their loan.
What is the Benefit of a Co-Borrower?
Since there are two people applying for a loan, the overall credit rating is better. This can mean the difference between getting a loan and not getting it. It can also mean that you can get slightly better terms – for example, that you can borrow a larger amount than you could have done alone or that you can get better interest rates.
What is meant by fixed annual income?
Fixed income is the income you receive each year from, for example, a permanent employment, pension or you earn as your own entrepreneur. Grants and the like are not counted as a fixed income. Many lenders require a certain fixed income each year in order for you to borrow and some lenders instead require only a minimum income but do not care as much where the money comes from.
How is income assessed if I am parental leave?
If you are parental leave, it is the parental allowance you receive that counts as your income.
How is income assessed if I am on sick leave?
For sick leave, the sickness benefit is to be stated as income.