Compare the best options on the market and choose the one which best adapts to your day-to-day needs.
Further Below: Our Guide to Payday Loans in Finland, Everything you need to know.
1. Nordic bank
- Offer loans of up to 70,000 euros
- Flexible interest rates
- Unsecured loan
- Fast payout
- Laxer application procedures
- Excellent repayment period of up to 15 years
- Loans available for any purpose
- Offers free application
2. OP (osuuspankki)- cooperative bank
- Flexible loan limit of up to 15,000 euros
- Annual interest of 7.9% plus a Euribor of 3 months
- Offers a grace month once a year
- Lenient application procedures
- Loan purpose is diverse
- Fast approval
- Limited to OP customers
- Customized repayment terms
3. Saldo loan
- Offer loans of up to 50,000 euros
- Friendly interest rates of 13.99% p.a
- Fast approval within 5 minutes
- Hassle-free online application
- Long repayment terms of up to 88 months
- Simpler eligibility criteria
- Applicants with stable income are preferred
- Available for various purposes
Payday Loans in Finland, All You Need To Know:
Before contacting a payday loan provider in Finland, spend free five minutes reading about the finest payday loans to be well prepared. We gather all the required data on Finnish credits and potential current issues to assist you in making an informed financial decision.
The current market for payday loans
- One of the many EU nations that have been severely impacted by the ongoing Russian incursion is Finland. The EU’s economic recovery was virtually at its peak when the war broke out. Due to the excessive inflation of commodities, the economy is currently in danger, and non-bank lenders are exposed to credit and liquidity difficulties.
- By paying 1% to banks that finance families, the European Central Bank hopes to encourage banks to offer consumer loans.
- According to the May 2022 Financial Stability Review, if the Russian invasion continues, things could get worse for large banks making interest rates on consumer loans rise to 1.79 %. These powerful banks might be vulnerable to credit concerns and lower profitability, which would hamper the economy’s recovery.
- According to experts, the war between Russia and Ukraine has seriously hampered the EU’s economic recovery. As long as there is a conflict, things are still really bad. However, the financial market might sigh with satisfaction if Russia and Ukraine can settle their disagreements amicably. However, as things stand, the war’s impacts are starting to affect the world economy.
Rights and Duties of Credit Consumers in Finland
The consumer credit protection act clarifies the rights and duties that govern credit consumers before and after they take out loans.
- Right to access all pre-contractual information before taking out the loan
Consumers of payday loans have the right to access and review all the information and specifics of the contract. This comprises every aspect of the loan’s terms and conditions, including interest rates, the sum borrowed, the periods of repayment, and any commissions (SIS). The client should have the opportunity to compare various loan terms and offers to get the one that best meets their needs.
- Right to receive updates from the lender during the repayment period
Consumers of loans are entitled to monthly updates on any modifications that may occur during repayment. Even though these modifications may have been described in the written agreements, the lender must nonetheless periodically inform the borrower of them. The lender must deliver a maximum of six annual debt statements free of charge, according to the requirements of the Finnish government.
- Duty to take out loans responsibly
One important factor the customer must take into account is their income in relation to the monthly installments they will be expected to pay once they take out a loan. To easily assume loan repayment, the loan should cover between 35 and 40% of your monthly income. Be prepared to make deductions without feeling hardship because a loan will eat away at your monthly income for a long time.
- Duty to provide all the information required by the lender
Since the lender assumes a risk when granting a loan, it is the consumer’s responsibility to give the lender accurate information about their financial situation both during the application process and if anything changes while they are making payments.
The lender can assess the consumer’s amount of debt, income, and outgoings in this way.
- Obligation to comply with the loan conditions
After entering into a loan arrangement, the borrower is required to adhere to all loan terms, including making monthly installments and any other commissions.
How to apply for a payday loan?
The following are the steps you will usually take to obtain finance even though the application process for a payday loan may differ with various organizations:
- Compare loans offered by various lenders online or in person. Compare the bids from at least three lenders whose loan terms are in your favor and choose the one that best fits your financial circumstances.
- Fill out the application form you are given after choosing the lender. Fill up all the blanks honestly and completely with information about you and your preferred loan terms (cost, amount, term, commissions.)
- If you submit an online application, you’ll get pre-approval in a short while and approximately two days after a physical application.
- Depending on your lender’s preferences, make sure you deliver all the required paperwork via email, scanning, or uploading images.
- If everything works as expected, the lender will send you pre-contractual documents. To avoid any surprises, analyze the information’s specifics while keeping in mind how the loan terms (cost, repayment time, amount, commissions) may change in the future.
- Sign the agreement in person or online using a digital signature.
- Depending on the lender, you may receive the money right away or within a few days.
Requirements for payday loans in Finland
Even if you match all the criteria, the lender is under no obligation to loan you. However, if you omit even one criteria, your application can be rejected.
What conditions must you fulfill then?
- Be of the right age. Many lenders will view borrowers under the age of 18 as minors and set a minimum age of 21. Borrowers over 67 may find it difficult to obtain finance in Finland.
- Your level of income. You’ll have to prove that you can pay back the loan by bringing in a respectable amount of money. If the monthly payments equal 50% of your salary, many lenders won’t give you credit.
- Have a Finnish residence. Many financial companies favor granting loans to applicants from within the territory. As a result, whether you are a Finland citizen or an immigrant, you must present documentation of your residency in Portugal.
- Your credit-worthiness. Before giving you the money, the lender will take some time to evaluate your amount of debt. Therefore, make an effort to keep your debt at a healthy level to prevent receiving a poor credit rating from the Central Credit Register.
While certain organizations may fund you regardless of the amount of debt you have, it is your responsibility to keep positive credit history. Use the aforementioned criteria to decide whether a loan is appropriate for you before applying for one.
Documentation for applying for a payday loan
You will need to provide proof that you meet the entity’s stated requirements. As a result, you will be asked to supply supporting documentation.
- Copy of your national ID, passport, or other identity forms
- Proof of purpose which can be a proforma invoice budget
- Permanent or temporary residence permit card
- Bank statements to show your recent income and expenses
- The last three payslips or documents to prove the nature of your employment
Who grants payday loans in Finland?
In Finland, Banks have dominated consumer credits as they hold a strong base in offering diverse financial products to the market. However, in recent years other non-banking financial lending institutions penetrated the market and are rapidly growing in offering services. This has created stiff competition among financial lenders.
Entities that grant payday loans include:
- Bank entities
- Credit Financial Institutions (CFE)
- Private Lenders
- P2P Lending Platforms
Financing through banking institutions
- Fast application process
- Numerous financial products
- Large loan limits
- Extended repayment terms
- Accommodating interest rates
- Tedious application process
- Costly because of all the commissions
- Seniority is a deciding element.
- Many comparable commodities
Financing through Credit Financial Institutions (CFE)
- provide loans for a variety of uses.
- Friendly interest rates
- Due to the low commissions, affordable
- Speedy application procedure
- Strict eligibility criteria like banks
- Credit history is a limiting factor
Getting loans online with private companies
- Hassle-free application process
- Lenient eligibility criteria
- Seniority is not a factor of consideration
- Expensive with high interest rates and shorter repayment periods
- Financing even with negative credit history which can cause over-indebtedness)
Payday Loans through P2P Platforms
- Favorable loan terms
- Quick and seamless online application
- No matching goods
- Slower concessions with many formalities
- Strict application requirements
- Limited platforms that provide payday loans
FAQ: Frequently Asked Questions
What is a payday loan?
Payday loans are a type of consumer finance used to cover brief financial problems. Due to their tiny sums, the loans are processed quickly and are intended to have quick repayment terms. Furthermore, payday loans carry high interest rates; as a result, they are typically taken out when the lender has no other way to get money. Among other things, getting a payday loan may be done for house improvements, electronics purchases, smartphone purchases, and project completion.
Why don’t you give me payday loans?
Although payday loan providers have fewer requirements for applicants than other loan kinds, they will still reject your application if you fall short of their minimum requirements. For instance, many loan requests are denied because the applicant has a poor credit history, earns less than what is necessary to grant him a loan, does not have a valid Finnish residency permit, or is possibly too young.
Additionally, if the information you supplied on the application form does not match that in the supporting documentation, the lender will not take the risk of funding you.
What is the binding offer of a payday credit?
Before you agree to the terms of the loan agreement, your lender will send you a binding offer. The paper contains all the terms and conditions of the credit, which you must carefully review for 14 days before deciding whether or not to accept the loan.
Can payday loans be paid in advance?
The loan might be repaid in full or in part before the predetermined deadline by the borrower. However, the loanee must inform the lender of this choice and could be charged a fee for the refund. The borrower will also be responsible for paying all accrued interest, commissions, and other costs, as well as the full amount they would have paid by the conclusion of the payback period.
What if I take out a loan online and then regret it?
Laws governing consumer credits in Finland allow borrowers to withdraw their loan application within the first 14 calendar days without attracting charges. However, any withdrawal beyond 14 days attracts some penalties.
When to Apply for a Payday Loan
A payday loan is intended to cover some unforeseen financial situations that can cause the borrower to change entities. Depending on the entity, the financing process could take some time, therefore the borrower might not mind.
To find the loan that’s best for you, make sure to check out loans with our listed businesses.
When to Apply for a Fast Loan
A quick loan is requested when the borrower requires immediate cash. They are taken most of the time when faced with financial crises. However, you might think about obtaining an alternative credit if your demand is not urgent.
It is wise to consider our financial status before applying for a loan and to start looking for the consumer credit that is best for us. When you apply for a loan, keep in mind that even if you match all the criteria, the lender is under no obligation to give you money.
Be careful when borrowing since once you accept a loan, you must repay it according to the terms and circumstances set forth. I hope some of our recommendations provide solutions.
About this page, our methodology
What is this page for: On this page, we focus on assisting you in selecting a financial solution that best fits your economic needs. For you to choose the most appealing product, we, marshal the best information that is currently available regarding consumer credits and what to take into account when selecting an option. This will help you obtain liquidity with lower payments.
Source: the information regarding business loans in Finland and their current regulation comes from the Finnish Consumer Credit Act, Government portals, and financial institutions such as banks among other reliable sources.
Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.
About FUNDGECKO: This platform’s financial comparison tool attempts to give users useful personal finance knowledge. Through this website, all users can compare and choose between the top financial products available right now, completely free and without any obligations. They can also gain access to all the necessary information to make an intelligent and responsible purchase of the financial product that best suits their financial situation.
Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.