Nowadays, there are many companies offering unsecured consumer loans online. There are so many financial entrepreneurs that people’s attitudes towards them and to borrowing in general have even become a bit skeptical.
However, a consumer credit is no more miraculous than a particular consumer loan. Car financing offered by the car dealership is a consumer loan, just like a bank loan for renovation.
The difference between a consumer credit and an old-time bank loan is that you can get an unsecured consumer loan online quickly and easily without having to queue. Even today, bidding and interest rate comparisons of a loan are done instantly with a few buttons.
Borrow from a bank?
We reviewed the loan terms of various banks and financial institutions. Comparing loans can be a tedious and time-consuming job that you should consider properly when you want a cheaper loan. Below you can read how banks’ interest rates on loans under $ 9,000 vary.
In addition to interest rates, it is also worth considering the other side costs of the loan. Loan management fees, transaction costs and other management fees for loan modifications can make a big difference to the monthly payments you make on a loan. By comparing financial institutions and combining several of your smaller loans into a single loan, you will have clear savings on these costs.
Is unsecured bank loan expensive?
Consumer loans are often considered expensive, as most people have experience only with student loans and mortgages. Compared to a mortgage rate of less than 1%, any bank loan may seem expensive. It is a good idea to forget about such dream interest rates in the loan market, but that does not mean that you cannot get a cheap loan. It can be affected either by reducing the loan period or by increasing the security.
It is also possible to obtain a loan without collateral. Unsecured consumer credit is a little more expensive than a secured loan because the bank takes a higher risk when borrowing money without collateral or collateral. But with the help of a loan comparison service, you can now find an unsecured loan at a very competitive price.
The loan comparison revealed large interest rate differentials.
We compared unsecured consumer loans from twelve banks and financial institutions in Finland to a loan of USD 8500. Below you can see which bank has the best interest rate on the loan and how much the interest rate alone can fluctuate through the loan calculators provided by the bank.
It is a good idea to make regular comparisons between banks every year, as loan terms and interest rates vary widely.
How do transaction fees increase the cost of a loan?
However, a simple comparison of reference rates does not tell the whole truth about the cost of a loan. When comparing loans, it should be remembered that the margin offered by a bank is always personal. The margin is relative to the bank’s estimate of the borrower’s repayment ability. The actual annual interest rate is also affected by the transaction fees charged by the bank: loan processing, conversion, opening and account management fees. There may be large differences in transaction fees.
When calculating the loan price, it is also worth considering the benefits and bonus schemes offered by some banks. Bonuses of tens or hundreds of dollars a year reduce the real annual interest rate of the loan considerably.
Where’s the best interest rate on a loan?
Many times, borrowers think that the best deal can always be found at your bank. That’s easy to think of, especially when all the money from mortgage to insurance has been in the same bank for years. For many people who compare loans, it comes as a surprise that the cheapest or best loan can be found somewhere else – not necessarily even from a traditional bank.
The financial institutions that have come into the market today have very competitive loans, and that is why it is always worthwhile to apply for a loan first. For larger loans, the difference can be hundreds if not thousands of dollars, and even for the smallest loans, you can save up to several tens a year thanks to competitive bidding.
As there are many new and unknown players in the market, it is worthwhile to apply for a loan through a reliable benchmarking service. The partners of Rahoitus.fi loan comparison service are well-known and financially reliable lenders, each of which is approved by the Finnish Financial Supervisory Authority.
Combining loans lower the APR
In the context of competitive bidding, it is also worth considering combining old loans into one larger loan. By combining loans, it is possible to obtain a lower interest rate on the total debt, while saving you from the elimination of several individual debt service charges.
By combining loans, it is possible to get a significantly lower monthly payment than a lower interest rate. Especially for debtors struggling with payments, bundling loans can bring the much needed financial relief to everyday life.
What kind of loan could you get?
Wondering what kind of savings you could get from a loan comparison? At Rahoitus.fi you can easily and quickly check the amount of loan you could get right now. Moreover, loan comparison is a free service and does not bind you to anything. Submit your free application and get quotes quickly to your email. You can make the decisions after you have received all the offers and choose the most suitable and cheapest loan for you.