Finding the right type of loan

The basics of a loan are almost always the same. A person or business lends you money for a certain amount of time. You then pay the money back, along with an agreed amount of interest.

That’s where things can get complicated, because there are many different “types” of loans.

• Secured loans: You’re probably most familiar with home and car loans; the lender has “security” in the event that you don’t pay the money back, because they can repossess your home or car. Home equity and auto title loans also fall into this category, as do pawn shop loans, since the item you’ve pawned serves as the collateral, or security.
• Credit card loans: No security is required for a credit card loan, but you’ll usually be charged huge interest rates. Even worse, there’s no agreed-upon repayment period, so it’s much too easy to carry these loans – and make enormous interest payments – virtually forever.
• Payday loans: These short-term, unsecured loans are small ones at sky-high interest rates. You’ll normally have to give the lender a post-dated check or debit authorization, so they can collect their repayment as you get your next paycheck.
• Personal loans: No collateral is required for an unsecured personal loan; the lender uses your credit scores, credit report and employment/housing history in order to decide whether you qualify for the loan and how much interest you’ll pay. Interest rates are lower than for credit card and payday loans, and there’s a set repayment period. Personal loans are usually the best choice if you have to make a big purchase, or consolidate other debts like credit cards debt.

For most people, the smartest way to borrow money is with a non-secured personal loan.

But how do you get one?

Read more: Student loans

Compare, Compare, Compare

A large number of banks, financial institutions and other lenders offer personal loans. Many of them let you apply online without even leaving your home. But applying to the first lender you find online can be a big mistake.

The terms, interest rates and other conditions attached to personal loans can vary widely, depending on who’s issuing the loan and how they view your application. If you jump at the first loan offer you receive, you could be accepting a deal that’s a lot worse than another lender would give you.

Visiting a number of banks, or a number of online loan websites, is one way to compare loan offers and lenders.

The much easier option is to use a service like Sambla.

Read more: Savings account

Who can apply for a personal loan?

There are several requirements for a Sambla loan application, but almost everyone who has visited this page is eligible.

• You must be at least 18 years old.
• You must have been a Swedish resident for at least one year.
• You must have a steady income of at least 8 400 SEK, either from gainful employment or a pension.
• You must have been debt-free with the Kronofogdemyndigheten (Swedish Enforcement Authority) for at last six months.

That’s it. If you meet those requirements, we can find you the personal loan you need, quickly and easily – and you’ll have multiple offers to choose from within 24 hours!