What Are Unsecured Loans?
Unsecured loans fall into the category of personal loans, which are confirmed with a particular repayment plan and a set maturity term. People can use the loans for buying some goods or gadgets or home based purposes such as renovation. Moreover, these loans are comparatively smaller than long term loans but at the same time, they are larger enough than other small loans like payday loans, SMS loans and many more.
Most numbers of lenders offer these personal loans on an average amount of kr 50,000. Borrowers have the liberty of choosing the loan amount according to their current needs and also to their repayment capacity.
Are Unsecured Loans Expensive?
Most uncollateralised loans are small and comparatively expensive. These factors further keep the interest higher because the loan term is smaller and the rates are large in comparison to the actual loan. When we compared them to secured loans, the Sweden loan marketplace has the maximum of unsecured funding, as per the growing demand of the borrowers. It has been found that borrowers, who earn high income, often opt for long term loans or secured loans. On the other hand, people with medium level and low earning generally opt for small loans because they do not have to repay the hefty amount.
Unsecured loans can be considered as the start of larger debt if not handled well by the borrowers. They make sure that they should not ask for more amount than their income capacity. Thus, we sometimes insist on debt-to-income ratio before granting the loan especially when disbursing more than kr 100,000.
The interest rates on small loans are generally higher but Sweden Loans does provide them on affordable percentage that would not put extra burden to your pocket. You should keep applying for low interest rate unsecured loans here and we will take care of your finances.
| Unsecured Loans | Secured/Long Term Loans | Small Term Loans |
|---|---|---|
| Interest rates are bearable. | Low interest rates. | Interest rates are generally higher. |
| Collateral is not required but guarantor may be. | Both collateral and guarantor are mandatory. | Borrowers can apply without such obligations. |
| The average amount limit to borrow is kr 50,000. | Borrowers can get the borrowed amount higher than kr 100,000. | Less than kr 50,000 can easily be availed through these loans. |
| One can apply for these loans for any personal desires or requirements. | Both personal and business needs can be fulfilled with these long term loans. | Loans are generally applied during a financial emergency. |
Does Credit Assessment Reduce Your Loan Chances?
Credit assessment is the crucial part of a loan process. Conventional lenders, particularly the banks, definitely include this while processing a loan. However, some direct lenders also taking this into their consideration and analyse following things in it:
- Discretionary income
- Annual income and debt repayments
- Risk involved in the loan
You should keep in mind that credit check does not include all the loans taken in the past. It also includes other factors that lending institutions take into account. Generally in small loans, credit perusal is not done because the amount is not so huge. At Sweden Loans, we also follow the same and provide unsecured loans with no credit check process.
How Unsecured Loans Work?
Applying for unsecured loans does not involve any complicated procedure rather one can follow the online procedure and these steps:
- Come to our website or you can also apply through sending a SMS
- Fill out an online form with mentioning all the mandatory details (make sure that all details should be true and relevant)
- Submit the form and wait for loan approval
Before putting final e-signature on to the loan contract, you make sure to read all the terms and conditions carefully to not to have any confusion later. Prepare yourself on how to repay the loan or you can also choose our automatic payment procedure to not to miss any repayment and prevent any further damage to your credit score.
Sweden Loans: A Paradise of Unsecured Loans
As a responsible lender, we understand how difficult is to arrange emergency funding but at the same time, we have made it easier through our flexible lending policies and with these following benefits:
- Avail desired funds in the most nominal rates of interest
- No collateral is required which keeps your asset protected
- Use borrowed money for any of your personal use like vacations, home renovation or dental costs
- Apply unsecured personal loans for your business too
- Any credit score accepted especially for the small amount
Sweden Loans does not put any restrictions on where you use the borrowed amount, it all up to you. Our primary aim is to help you in your financial success. Thus, don’t hesitate, just start applying for unsecured loans.