The consumer lending platforms offer the private users an option to deposit their loan requests in an online market to find out some private investors who would invest money and offer them an appropriate interest rate. There are lending portals like Prosper and Lending Club which apply a specific credit score and list the total number of financial requests by their intention and purpose before fixing a particular rate for lending. There are one or more investors who can serve the credit request. It is attractive for many users as the entire process is pretty fast and there is pretty much less demand in terms of creditworthiness of borrowers and the lending conditions are usually more flexible than the traditional bank loans. The users are defined as the active borrowers of lenders and the applicants or investors are just partially recorded as users aren’t included. The amount of outstanding installments or loans which are recognized during the year is used as benchmark.
Personal purpose loan
What do the people in Norway do when they run out of cash? Well, they turn to Norwegian companies which lend money to such cash-strapped people, apply for a loan and also get approved very soon. The borrowers immediately use the cash for their personal purposes but paying off their credit card bills or making payments towards their educational loans. For them forbrukslån are perhaps the easiest loan which can be applied. You don’t require collateral in order to take out such consumer loans and this is when it is called unsecured loans. It is only your signature that becomes the guarantee of the loan and this is why the interest rates on these loans are usually higher. However, as compared to other countries, consumer lending in Norway
offers comparatively lower rates than those loans which are taken for buying houses and cars.
The process of application is also easy and requires much less hassles. The approval process is pretty fast and the money is instantly transferred to the borrower’s account. Due to the extremely low waiting period, consumer loan is indeed the easiest way in which you can come to terms with your pressing financial conditions.
Interest rates on consumer loans
In Norway, the present interest rates for loans without collateral ranges from 10-30% and each lending company has got its personal way of calculating interest, which is dependent on the total amount of money borrowed, the time through which the repayment schemes and the total amount which the borrower can pay off on the basis of a month. All such factors would have an impact on the interest rates and also on the monthly charges on the loan which is approved.
In order to bolster the economy, the government has sought out ways of reducing the costs of borrowing and has created easier steps to get loans through personal or consumer loans. The government of Norway has also worked hard to reduce inflation for bringing down the cost of loan and help the economy improve.