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Loan Application and Approval in Sweden

When you are living in Sweden, you may want to apply for some loans. This can be a personal loan or a mortgage for your new house. The transition from a renter of rooms to an owner of a house can be a big leap and a total luxury. A few can afford this. You may want to buy a house or would ask for a personal loan. You will need to know where to apply for and what are the qualifications that you should possess to be able to apply for the loan. The average price of an apartment area of the single square meter is 92,000 Swedish Krona.

Applying for a mortgage

When you are going to apply for a mortgage, you should know the different things that you would require.  You will need about 15% of the value of the apartment in cash. This is when you are trying to buy an apartment. If you are a salaried person, the banks of Sweden will permit loans that are just a few times more than your annual or yearly salary. The banks are SEB and also the SwedBank among others. The loans in Sweden, therefore, are not easy to receive as they have strict percentage mentioned for the cash in hand and they also would not go for a considerable amount to the applicant as the loan.

Loan amount for a studio apartment

If you are interested in a 35 sq.m apartment for yourself, you may find the price of this small apartment is 3, 49 million SEK. The average price of the area would be 100,000 SEK. You then will have to borrow about 85% of this amount or 3 million SEK, only if you have a salary of 49,000 SEK for each month. This is not easy for many within the city as it is a good amount that you must earn to be able to apply for the loan.

Personal loans and UC approval

If you are going for any personal loan, you would need the approval of the UC. So what is UC? UC is the agency that will work for any business reference or credit reference and can provide correct data from its. It is a credit monitoring organization, and they prepare a financial analysis of any business organizations. This organization handles the credit reports and has got all the information regarding any individual or business organizations that are registered within the boundaries of Sweden.

Loans approval after calculations

There is the consumption loan that often is small and still expensive. These loans have a high-interest rate, and since it is for a small period, the fees seem more compared to the amount that is applied for. The rate of interest has grown for the large loans too, and they are also growing faster than is possible to meet by many. The loans in Sweden are coming with a significant interest rate as the economy permits it to be so. When the borrower has got a more substantial income, they get their loans approved and so it is wise to go for a mortgage loan if you are interested in an apartment. The lenders will check the credit assessment and calculate the loan to income percentage and then it is taken for approval. So the borrower who has got a mortgage will find it a bit difficult to take a consumption loan as repaying may exceed the income structure. These reasons are taken into consideration before a loan is sanctioned.

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