The Best Personal Loans in Finland

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 Personal 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

Personal Loans in Finland, All You Need To Know:

Read this article for 15 minutes to discover more about personal loans in Finland, including what to consider about before taking out this kind of credit and how Finnish personal loans differ from other types of credit. We gather the most recent news on consumer loans and everything associated with them at FUNDGECKO.

The current market for personal loan

  • The protracted conflict between Russia and Ukraine has seriously weakened the stability of the financial markets in the Eurozone. While the Eurozone had anticipated significant post-pandemic growth, the inflation of prices has put many borrowers in danger, and non-bank lenders may be vulnerable to credit and liquidity issues.
  • The May 2022 Financial Stability Review warns that if the ongoing Russia-Ukraine war continues to destroy the economy and supply lines, things could develop worse than even strong institutions can handle. These banks may experience credit risks and reduced profits. These have slowed the rate of economic recovery that began in 2022.
  • Interest rates have also shot to 1.7% but are expected to slow down to 0.5% come 2023 as forecasted by banks in Finland though there might be uncertainties. There are also high inflation rates with increased prices of commodities which have affected all economic sectors.

How to compare between online loan offers?

A significant financial choice that could have a favorable or bad impact on your financial condition is taking out a loan. Therefore, it is advisable to play it safe and stick with what would be useful. Several lenders are offering personal loans, and their offers could all appear appealing. As you choose the loan that best suits you, it’s important to understand how to filter information. 

You must apply criteria for the sorting process, such as the loan’s amount, interest rates, length of repayment, commissions, price of the links, and any other fees. These parameters differ from one organization to the other which calls for concrete analysis before selecting an option.

We can determine which simulation is preferable by comparing the overall cost after running several variations based on the project we want to fund and the offer given by each organization.

How to use FUNDGECKO to get personal loans

One significant step that any borrower needs to do is to gain a thorough understanding of loans and how to choose the best possibilities on the market. At FUNDGECKO, we are committed to guiding our customers through every step of the loan application process, including the appropriate documentation, any applicable credit policies, and any additional requirements.

Below are the steps followed at our site:

  1. Compare the various lending choices that appeal to you. This action is chargeless.
  1. Examine the terms and conditions of the loan choice you select in great detail.
  1. To increase your confidence while you apply for a loan, our team is always available to help dispel any doubts you may have and respond to any inquiries you may have throughout the journey. By selecting “contract,” you will be taken to the organization’s website, where you can start the application process with the assistance of our team of professionals.
  1. Our website offers a comment section where our grateful customers can leave feedback regarding our services.

Why do you look for personal loans?

A personal loan is a reliable source of funds that you may use to settle a variety of financial needs including going on a retreat, buying a smartphone, or finishing a job that has been put off. It’s crucial to check with your lender, regardless of the purpose, to see if any loans are expressly designed for different uses and whether they have better terms that are more flexible to comply with.

Personal loans are multi-purpose and can be used for:

  • Debt reconciliation
  • Renovating your home structure
  • Vocational trips
  • Making impulsive purchases
  • Financing your academics
  • Buying kitchen equipment
  • Paying medical bills
  • Buying electronics and other machines
  • Buying a car 

Generic loans typically have worse terms than loans made for a specific purpose. Compared to generic ones, they frequently offer larger loans with lower interest rates and longer repayment terms.

How to apply for a personal loan?

No matter who you’re borrowing money from, the application process for personal loans is typically the same. It’s important to note that some entities may have some complexities. For instance, one organization might insist that you submit a paper application, while another might let you submit an online application. 

What steps are you likely to follow with personal loans in Finland?

  1. Choose at least three attractive entities, then inquire about their circumstances. To decide which of their terms and conditions is best for you, compare them.
  1. The organization will send you the application form either electronically through their application or they may ask you to physically visit their offices to submit it. Before returning the form to the lender, choose your desired terms (amount, length, and purpose) and fill out all the blank spaces with the most precise personal information.
  1. If everything goes as planned, the lender will send you a pre-approval notification for the online application and the paper application 48 hours later.
  1. Make sure you deliver all of the documents requested by the entity, whether you upload digital images, scan them, or deliver them in person to the entity’s office.
  1. The business will provide you with a pre-contractual document after accepting your application, which you must read. You can learn more about the contract’s terms and conditions, as well as any potential revisions, by carefully reading it. You will be prepared for any future payments in this way.
  1. If you accept the terms of the contract in their entirety, accept the offer. You’ll need to use a digital signature to sign the online application.
  1. Receive the funds. Disbursement occurs within the agreed period 

Requirements for personal loans in Finland

Each borrower in Finland will be expected to comply with the same rules by all personal loan providers. Knowing how to apply for a loan is not enough; you must also comply with all standards stated by the lender to lower the likelihood that your application will be denied. 

Below are the must-meet requirements: 

  • Finnish residence. This is irrespective of your nationality status. Most entities require you to provide a Finland residence permit which can be permanent or temporary.
  • Age. while the required age by law is 18 years, some lending institutions will prefer an age of 21 years up to 67 years for eligibility.
  • Income stability. Borrowers with stable income sources are more eligible for these online loans unlike those without a constant reliable source of income. Lenders will therefore assess your income to gain the confidence to lend you money. 
  • Positive credit history. While some organizations will finance you despite having a bad credit history, the majority of organizations will automatically reject your application if you are listed as a poor borrower in the Finnish Credit Register.

You can fully comprehend the loan’s terms and conditions by reading the contractual material. For instance, one organization might insist that you keep your residence permit for longer than six months, while another might provide funding for you regardless of how old your permit is.

Documentation for applying for a personal loan

Documents proving your eligibility for the loan you’re taking out are needed by your entity. A successful application requires that the details in the supporting materials and the application form match.

Which documents must you have?

  1. Prove of identity either ID or Passport
  2. Bank or postal statement showing incomes and expenses
  3. Payslips to show income received in the last three months and nature of employment
  4. Residence permit card
  5. Tax compliance certificate or approval
  6. Document showing loan purpose

Who grants personal loans in Finland?

Finlands’ economic status on consumer credits is held tightly by banks. However, before the financial crisis emerged, numerous non-banking institutions penetrated the market. Banks still hold a bigger portion due to their attentive financial products presented to the markets. This has caused competition among these lending institutions. 

Entities that grant personal loans:

  • Bank entities
  • Credit Financial Institutions (CFE)
  • Private Lenders
  • P2P Lending Platforms

Financing through banking institutions

  • Wide range of financial products
  • Loans amounts are flexible for all
  • Longer and simpler repayment terms
  • Friendly interest rates
  • Complex eligibility criteria
  • Long and tiresome application procedures
  • Commissions and fees attached are expensive
  • Seniority is a factor of consideration
  • Many products are almost similar hence longer periods of analysis
  • Seniority is a determining factor
  • Many related products

Financing through Credit Financial Institutions (CFE)

  • speedy application procedure
  • accommodating interest rates
  • fewer commissions and fees
  • Open to a wide range of purpose
  • more rapid concessions 
  • Reduced loan limits
  • Complex eligibility criteria
  • Expensive as it has higher interest rates
  • They can operate only through stores or dealerships

Financing through private companies

  • Fast loan approval and payout
  • Laxer application process
  • Seniority is not a factor in compliance
  • The requirements are easier to achieve
  • Expensive due to high-interest rates
  • Credit history is not a limiting factor to approval
  • Unfavorable repayment terms

Personal Loans through P2P Platforms

  • Fast as it’s a completely applied online
  • Loan terms and conditions are favorable
  • Financial products are not related
  • Not affected by seniority factors
  • Eligibility criteria are complex
  • Hiring process takes much longer
  • Limited as only a few platforms provide loans
  • Expensive to short-term borrowers

FAQ: Frequently Asked Questions

What is a personal loan?

A personal loan is a sort of credit obtained from a bank or other lending organization to repay the amount borrowed with accumulated interest over a predetermined length of time and in the agreed-upon monthly installments. Personal loans in Finland have a wide range of purposes and you can use the money for a variety of things, such as funding your education, finishing a project, purchasing a car, or house, or renovating your property.

Why don’t you give me personal loans?

Personal loans ought to be an easy way to get money. But there are many different reasons why a lender can turn down your loan application. Your application form, bank statements, and other supporting documentation may include inconsistent information, and you may be carrying excessive debt or not making sufficient living. Other factors that limit your loan eligibility are having a negative credit history, unstable income flow, and negative financial behaviors.

What is the INE form for a loan?

This is a formal document given by the lending organization to the borrower during the loan application process. The INE form contains the loan terms and conditions, and contractual terms, including amounts, interest rates, repayment period, commissions, and all other attached fees.

What is the binding offer of personal credit?

We are given a minimum of 14 calendar days if the entity makes a binding offer to us so that we can compare it with other loan offers without forfeiting the current one. You receive a binding offer from the lender, which is a document containing the terms of the loan that you must read thoroughly while you weigh your options.

Can personal loans be paid in advance?

Following the regulations of Finnish law, consumer loans may be repaid early in full or in part. You’ll be obligated to pay back the loan plus any accumulated interest in either situation. In addition, you must inform the lender in advance if you decide to repay the loan to avoid making financial errors. You may be compelled to pay an early payback fee or a subsidized amount for earlier repayment depending on the lending organization.

What if I take out a loan online and then regret it?

At times we get the need to take loans and thereafter we regret taking that type of loan due to diverse reasons. The Finnish laws give room for such withdrawals within the first 14 calendar days with no charges. However, withdrawal after that attracts fines and penalties. 

What happens if I don’t pay back a personal loan?

Rejecting your obligation by not repaying a loan has repercussions. If your lender decides to pursue legal action, this will first damage your credit history as you are listed as a poor borrower at the Central Credit Register and could land you in jail. You won’t be eligible for any loans in the future because your credit history has been negatively impacted. Therefore, it’s wise to borrow money within your ability limit to avoid constraints when repayment falls due.

When to Apply for a Personal Loan

When you need to finance a project but don’t mind waiting or getting it from a different company, a personal loan can be helpful. The aforementioned companies, whose websites are accessible to users who speak English, provide the greatest personal loans. Always analyze your needs before applying for a loan when you thoroughly need the funds to avoid misuse of funds.

Finland is renowned for lending money to foreigners who dwell within its borders. If the applicants fulfill all conditions, the application process is simple and accommodative

When to Apply for a Fast Loan

A quick loan is a sort of credit that offers money in times of financial need. You might need to pay a medical bill in full, consolidate debt, or take care of any other urgent obligations.

Fast loans, however, may tempt you into excessive debt because of their quick and simple application process and laxer eligibility requirements. These loans have high-interest rates and short repayment periods which make them expensive. If your needs are not urgent, it is advised to walk away from these loans to avoid bankruptcy.

About this page, our methodology

What is this page for: Our focus is to assist you in selecting a financial solution that best fits your economic needs. For you to choose the most appealing product at the time, we, marshal the best information that is currently available regarding consumer credits and what criteria to take into account as you compare the possibilities.

Source: the information regarding the main characteristics of 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 us: FUNDGECKO is a comparison website that assists customers who are unsure about personal loans or which service to choose. We help our users in comparing the possibilities like pros by giving them all the knowledge they require about consumer credits and how to choose the option that best fits their needs.Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.

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