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If you are looking to get a loan in Sweden, there are a few things to keep in mind before you make an appointment with the bank.
First, you need to identify what type of loan you would like. The requirements you need to fulfil may differ depending on the type of loan you want. For example, to get a house loan (bolån) there are stricter demands than for a car loan (billån) or loan without security (lån utan säkerhet) because there is more money involved over a longer time period.
If you’re considering buying a house or an apartment in Sweden, you will need to have quite a bit of money saved up. While interest rates are low, property prices are very high. An average cost of an apartment is around 3,500,000 SEK (£300,000) and for a house 5,500,000 SEK (£470,000).
To get a house loan, it is common requirements from the banks that you are:
- Registered for living in Sweden.
- In full time employment for over 6 months with a declared income.
- Able to provide proof of your credit history and any assets and loans you may have abroad.
- Meet the ‘left to live’ criteria depending on your family size. For example, a family of 2 adults and 2 children would have to have at least 23,000 SEK (£2000) each month after the mortgage is paid.
- Pay the down payment of 15% or higher. Banks in Sweden will not approve a mortgage higher than 85% of the price of the property.
Each car loan (billån) application is processed individually so some requirements may vary slightly. Some lenders also offer money to take a driver’s license. However, some basic loan application terms and conditions are:
- Be registered in Sweden.
- Minimum 18 years old.
- Be in full time employment.
- Provide satisfying credit history.
- Must earn at least 80,000 SEK per year pretax.
Loans Without Security
When you apply for a loan without security (lån utan säkerhet) or collateral, also known as a private loan, you get the money paid out to you much quicker than for a house or car loan. The securities in the other loans are the house or the car itself. If you can’t make the loan repayments, the bank can seize your house or car.
For a private loan, you are not putting up any security, but the bank still needs to make sure that they will get their money back. As such, they will investigate your finances by looking at your employment and credit history. It is your current finances that determine how much you can borrow and at what interest rates.