Loan brokers can be used when you want to apply for loans quickly from several banks at the same time. A loan intermediary acts as an intermediary between the customer and the bank.
You submit an application for a loan to the loan broker and they in turn forward your application to the banks they cooperate with. This means that you do not have to make long complicated applications to several banks that take time. Only one credit report is taken on you even though your application is sent to several banks and it is completely free to apply.
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Which is the best loan broker can be difficult to determine as it depends on what is the best option for the customer. It may be the one offering the highest amount, having the most banks they partner with or the intermediary offering the lowest interest rate. The best loan broker therefore varies depending on how your financial situation looks and how much you want to borrow.
Basic requirements of Swedish loan intermediaries
There are some basic requirements that apply to most loan intermediaries when applying for a loan. You always need to be at least 18 years old. However, some lenders apply a higher age of over 20 years.
Many people also want to be free of payment remarks. But there are also lenders who accept payment remarks. Debts of the Crown Supervisor are never allowed with any loan broker. In addition, there are differences in the amount of income you need for an application.
Benefits of applying through a loan broker
Using a loan broker is often a big advantage. With a single credit report, you can get offers from several banks. It saves you time. You do not have to create multiple applications at several banks. And your credit value is not affected to such an extent.
When you apply for a loan, the bank charges you a credit report. If you apply to several banks yourself, you will eventually receive more credit information. If you have multiple requests for loans through UC then your credit value will be lowered. Therefore, it is advantageous to have as few inquiries at UC as possible.
You can apply for a loan through a loan broker without UC. Some of the intermediaries use alternative credit reporting agencies. It also means that your credit value is not affected since UC cannot see the inquiries that exist with alternative credit reporting companies.
Using a loan broker is free for you as a customer. This is because the bank that the customer chooses will pay a sum to the loan intermediary.
When you apply through a loan broker, you will receive the same offer you would have received if you applied directly to the bank. You will be offered the same interest and the same amount.
As previously mentioned, the biggest advantage of loan brokers is that you get an offer from several lenders with a single application. This makes it easier for you to choose the lowest interest rate. Do not forget to compare other fees such as setup fee or aviation fee.
Disadvantages of applying through a loan broker
There are not many disadvantages to applying through a loan broker. But one of the disadvantages of using a loan broker is that you do not have direct contact with the bank when applying. This may mean that they do not get the complete picture of your financial situation. For example, if you have a lower credit value due to a previously low income, but your financial situation has recently changed.
Here’s how to apply through a loan broker
The process of how the application goes and what happens after you submit your application is similar in all brokers.
The first thing you need to do is apply through the loan broker’s website. There you can fill in information about yourself, your income and how much you want to borrow. You can also choose what maturity you want on the loan. You then approve everything with BankID.
When you submit your application, it is first reviewed by the lender who also does a credit report. Either it is done via UC or with an alternative credit reporting company. Your application is sent to the banks with which the intermediary cooperates. Usually they cooperate with about 20 banks, but there are intermediaries with over 30 collaborations.
Normally, you will receive a response within 24 hours from the banks with their offers. The banks always send out the lowest interest rate they can offer the customer. This is usually done automatically. The bank therefore sees no difference in whether you have submitted the application directly to the bank or through a loan broker. There is no guarantee that all banks will offer you a loan or the amount you have applied for.
Once you have received a response from the banks wishing to offer you a loan, it is time to decide which loan you want to accept. The loan that has the lowest effective interest rate is usually the best but other things can affect your decision. If you have applied for a larger loan then it would be a better option to choose the bank that offers the full amount.
After you have chosen the offer you wish to accept, the bank will send the loan documents to you. Nowadays it is most common to sign them directly with BankID, but some banks still use letters.
After receiving the approval of the loan, the bank pays the money. It usually takes a couple of banking days before they reach your bank account.
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