What does a loan tender mean?

Bidding on a loan means comparing different loan offers to get the best possible loan for you. Each lender evaluates loan applicants a little differently, which can result in a large variation in your loan offerings.

In Finland, loan tendering is still a relatively new phenomenon. We are used to competing only on mortgages – and only when raising a new mortgage. Existing mortgages and other loans are significantly less competitive.

In this way, our situation is different from Sweden, where most of the loans are already tendered before they are taken out.

Fundamentally, loan competition is no different from, for example, comparisons of flights or electronics, which are starting to be commonplace in Finland as well. Competitive flight, hotel and electronics Competitions have been facilitated by various comparison sites which can easily see the prices and other terms of different service providers.

How do I compare loans reliably?

How do I compare loans reliably?

In Finland, consumer protection is strong, and also when applying for a loan, the client is strong. The law specifies exactly what the lender must disclose before entering a credit or loan agreement. These are:

  • Amount of credit or credit line
  • Borrowing rate and other borrowing costs
  • Duration of the credit agreement
  • The total amount of credit and credit costs and the amount of installments
  • Annual percentage rate of charge

Because loans can have very different charges, a simple comparison of the interest rate or the current annual interest rate may not yet tell you which loan offer is best for you.

The total cost of a loan is also greatly influenced by the chosen repayment period, which may increase the repayable amount on the loan significantly.

The safest way to compare loans is to calculate what is the repayable amount in euros. This tells you the real cost of the loan and makes it easier to assess your own financial solvency.

Why do different banks and financial institutions offer different loan offers?

Why do different banks and financial institutions offer different loan offers?

Each lender evaluates loan applicants a little differently, which can result in a large variation in your loan offerings.

Banks and financial institutions often use a so-called scoring or scoring system, which evaluates your solvency and thus affects the price and ceiling of your loan. Lenders’ credit policies may also vary: one lender may lend to 18-year-olds, while another may offer loans to clients under 20-years-old.

Typically, lenders make their loan offerings by going through, for example. the applicant’s income, monthly expenses, employment status, marital status, other family situation, property, and other liabilities or liabilities.

It is therefore safest for the lender to grant a loan to someone whose creditworthiness they value. You should always keep this in mind when filling out a loan application – even a slight mistake in the loan application may appear at a higher loan price.

In addition to these, lenders usually obtain information about the applicant from external sources or other credit reporting companies.

How do I find the best loan offer?

How do I find the best loan offer?

Company specializing in loan and finance competitions. We help our clients find the best loan offers and clearly display the interest and other charges on the loan in euros.

We work with different banks and always compete for loans between all our partners. This will allow you to select the most suitable loan offer by filling out only one application . Easy, right?