• The loan market in Sweden

    Information about loans for personal and business use in Sweden

  • Flora of loans

    Types of Loans

    The primary types of loans in Sweden are:
    Loans for private use
    • Loans with security including mortgage loans with house or apartment as collateral and car loans. There are also examples of loans where the creditor can connect to the borrower's employer and get repayments directly from the salary.
    • Loans without security or consumer credits. In this category there are several types of loans: Personal loans, Credit card, Credit accounts and Instant loans/SMS loans (like payday loans) are the most common ones.
    Business Loans
    • Loans with security. Loans secured with personal guarantee, equipment or customer invoices.
    • Loans without security. In some cases it is also possible to get a loan without security.

  • Regulation

    Finansinspektionen

    Since the 1st of July 2014 pure lenders and loan intermediaries in Sweden must be authorized by Finansinspektionen. This is not always the case if the credit is given as payment of products or services. They must follow the law described in Konsumentkreditlagen as well as guidances given by Finansinspektionen and Konsumentverket.

    Visit Finansinspektionen: https://www.fi.se

    Konsumentverket

    Konsumentverket is the authority supervising the lenders making sure they follow the regulations. The supervising includes e.g. how the lenders perform credit checks and marketing.

    Visit Konsumentverket: https://www.konsumentverket.se

    The laws

    Some of the laws that must be followed when giving credits for personal use are:

    • Konsumentkreditlagen (The main law e.g. regulating the agreements between the lender and borrower)
    • Kreditupplysningslagen (The law regulating credit checks, e.g. for how long different types of information can be saved in the register)
    • Räntelagen (Regulating payment conditions and to some extent interest rates)
    • Lagen om skuldebrev (with more details about the loan agreement)
    • Skuldsanering (Laws about debt restructuring, i.e. when the borrower is wholly or partly released from liability for the payment)
    • Inkassolagen (The law about debt collection)
  • Loan companies and loan costs

    The companies

    You can find around 250 lenders or actors providing loans in Sweden including traditional banks, consumer credit institutes and residential Credit institutes. Many of those possesses more than one brand and there are also white label solutions.

     

    Some of them provides only one type of loa, e.g. instant loans, credit accounts or personal loans while some provide more types. A common way to loan money is to go through loan intermediaries having partnerships with 20-30 creditors, competing about the borrower with their interest rate.

    The cost of loaning money

    The cost for the loan is the interest rate and fees. Common fees are starting fee, often around 400 SEK and administration fee, 0 - 40 SEK, depending of whether the invoice is on paper or electronic. The interest rate depends on type of loan and spans from around 3 % to 40 %.

     

    There is a section in Konsumentkreditlagen describing a roof for the interest rate and the total cost, if the APR is higher than 30 % plus the reference rate, decided by Sveriges Riksbank. For these credits the maximum interest rate must be 40 % and the total cost for the loan must not be higher than the credit amount.

  • How It Works

    The process of loaning money in Sweden

    1

    Compare Loans

    The first step is to compare lenders to get information about whether you are eligible according to basic requirements and to get the best interest rate. A good starting point for comparing loan is Kreditkoll where you can find loans for personsal use as well as business loans.

     

    Most lenders require that you are a swedish resident as a basic requirement. Most often there is also an age and income requirement.

    2

    Send Application

    When you have found a suitable lender your fill in information about yourself and the amount of money you want to borrow. A Credit check is done through one of many credit check companies.

    3

    Get money or get denied

    The lender decides whether or not you'll be granted the loan. This is done by a risk analysis based on your information provided, the credit check and the amount of money you want to borrow.

  • Resources