What Is a Privatlån, Can You Get it in Norway & How?We all sometimes find ourselves needing money we don’t have. Whether you are dreaming of buying anew car, or you have some unexpected expenses to cover, or you simply want to get out of theexpensivedebt you have gotten into, say, on your credit cards, your next course of action will prettymuch be the same. In the simplest words possible, you will have to think about taking out a loan tocover those expenses.
If you have never had to take out a loanin the past, then you must be wondering how to do it the rightway. In case you’re not quite knowledgeable on the topic, chances are that you have taken the time tocheck out the different options that exist on the market. During that process, you have come across theoption called a privatlån, and it may have grabbed your attention. But, you don’t want to jump towardsusing it until you really understand what it is, how it works, and whether you can even get it in Norway.
So, you have a lot of questions on your mind. And, the good news is that I will answer those for youbelow, hoping to help you get a better idea about what this entire concept entails, as well as how itworks. Naturally, we will also talk about the process of getting a good solution for yourself, should youwind up deciding that this personal loan could be right for you. Thus, without any more ado, let us startanswering those questions.
What Is a Privatlån?
We are, obviously, going to begin with the most basicquestion here, because wecan’t go into thedetails before you understand what this specific concept actuallyentails. Well, a privat lån is basically aterm denoting a personal loan–the one you can get without offering collateral. That is, an unsecuredpersonal loan. It is the option people go for when they are in need of money for any reason whatsoeverand when they don’t want to risk any of their assets by providing them as collateral. Or when they don’thave any assets to provide as collateral for that matter.
Let us make the concept clearer by quickly comparing these to the secured loans. In short, when you getthe secured option, it means that you will offer your property, your car, or any other asset that thelender willaccept as collateral. Then, if you wind up defaulting on the loan for one reason or another,the lender will be able to seize that asset and collect the debt. Compared to this option, the unsecuredone carries fewer risks for the borrowers, because no collateral is involved whatsoever.
Basically, with the unsecured option, the borrowers are granted the loan based on theircreditworthiness and their ability to repay the money, which the lender will check by performing a creditassessment. The better your score after that assessment, the higher your chances of actually beingapproved for this option. And, of course, a better score also means lower interest rates, which isanother reason why you should work on improving it as much as you can.
These specific loans come with fixed interest rates, and they are suitable both for some plannedexpenses, such as home renovations, vehicle purchase and similar things, and for some unexpectedfinancial needs. Furthermore, people also often use them to consolidate their debts and thus get rid ofthe expensive credit cards and similar expensive debts that they may have gotten themselves into atone point. In short, they are suitable for pretty much any kinds of financial needs you may have.
One more thing to know. Since theunsecured personal loan doesn’t require collateral, it is clear that itposes a slightly higher risk for the lenders. Apart from performing extensive credit checks to determinewhich borrowers are worth working with and which ones aren’t, they also offer higher interest rates toprotect themselves. So, you should expect those rates to be higher than the ones you would get on asecured loan, which is perfectly logical. But, the good news is that you can still find reasonable solutions,as long as you take your time to do the necessary research andchoose the right lender.
Can You Get It in Norway?
You now get what the unsecured personal loan is, but you’re wondering one thing. Can you really get itin Norway? Well, sure you can! There are plenty of lendersoffering this particular option to borrowersin Norway, so you can rest assured that you will be able to find the option that works for you. That is, ofcourse, if you meet some of the basic criteria.
First things first, you have to be a Norwegian residentto qualify for this option, meaning you will need tohave been living there for a longer period–the actual required period can differ from lender to lender,but it is usually between one and three years. Then, you will need to be of the right age. Onceagain, thelenders will dictate the required age, with some of them being willing to work with people over 18,while others requiring you to be at least 25. And, naturally, you will need to have a regular income toshow for so s to be eligible for any kindof a loan, including this one.
Read more about personal loans in Norway:https://moneyminiblog.com/how-to/forbrukslan-norway/
We also cannot forget to mention the fact that you will need to have a good credit score so as to beapproved for this option. This is something I have hinted at above already, but let me make it as clear aspossible. Given the risks that the lenders are assuming by offering unsecured loans, they won’t be willingto work with borrowers that don’t have a good score, because they will deem them not creditworthy.Along the same lines, if you have any payment notices or perhaps some debt collection cases againstyou, your chances of getting this loan will significantlydrop.
How to Get the Right One?
If you’ve decided to get yourself a privatlån, having learned what it is and how it works, then you willonly have one question now left on your mind. In few words, you want to know how to get the rightoption for yourself. Well, that will require you to be patient and careful in the researching process. Afterall, you don’t want to rush into making some borrowing decisions and then regret them later. Loansshould never be taken out on the spur of the moment, so give yourself some time to explore the optionsyou have and only then make a final choice.
First of all, you should take time to find the right lender, because not all of them will offer the sameborrowing opportunities. Of course, I am assuming that you have workedon your credit score already,since this is something I’ve mentioned a few times above. If you have, then proceed towards searchingfor these lenders online, aiming at ultimately comparing their offers and selecting the best one for you.
So as to easily compare the lenders and their offers, you can rely on some of those comparison websitesthat have actually been designed with the aim of making the choosing process easier for the borrowers.The websites listvarious lenders and their borrowing terms all inone place, allowing you to quickly andeasily check everything out and compare the options. When it comes to the factors that need to becompared, you should focus mostly on the interest rates, but then also on the minimum and maximumborrowing amounts, as well as on the offered repayment periods, and any fees that may be attached tothe process of actually taking out a loan.
Once you have done all of the comparisons, you will be ready to choose the perfect lender for you. And,when you do that, you will simply have to fill out the application and provide the professionals with thenecessary documents in order for them to assess your creditworthiness and to ultimately approve youfor the personal loan you want to get. Nowadays, a lot of lenders offer the opportunity of applyingonline, which is a great thing that you may want to use to your advantage, because it makes the entireprocess even easier.
In any case, when you go through the application process, whether online or the traditional way, youwon’t have anything else left to do but wait. For approval. The waiting period will differ from one lenderto another, but you should get an answer to your application rather quickly, especially nowadays giventhe technological advancements that allow the lenders to easily do the credit checks. Once you areapproved for the loan, you will sign an agreement and the money will be deposited into your account,for you to use as you please.