Unsecured loans are those loans for which you don’t have to pledge something as a security to ensure the repayment. These loans have limits ranging from 5000 kroner to 500,000 kroner and you can choose the amount 9f your loan depending upon your need.
Most of the banks are giving these loans but now as the demand is increasing more financial institutions are providing the facility of “Forbrukslån” (a consumer loan) to the Norwegians. According to the SIFO, 2015 survey of consumption trends, most Norwegians use unsecured loans for their consumption habits.
In Norway, taking unsecured loans is a trendy task and most people are taking these loans. So the question is what is provoking Norwegians to apply for unsecured loans. Here we have described some of the reasons behind taking more unsecured loans by Norwegians.
- Comparison services
The consumer loan market in Norway is very big and confusing and in the past, most people stay away from loans just because they either don’t understand or got confused that they may end up with a loss. But now we have such services which have made the process very easy and understandable.
Now by using an efficient platform like besteforbrukslån you can get an overview of all the available unsecured loans. Before applying anywhere you can get and compare all the best possible information in a simple way that has made the decision-making process very fast and easy for the Norwegians.
Additionally, it also provides a consumer loan calculator by using which you can easily calculate the cost of the loan you are going to take. It is helping people to choose the best available option for them with the lowest interest rate. By estimating per month the cost of the loan users can make better choices.
- Free to spend
The main reason behind taking an unsecured loan is that you can spend money on any stuff or for any purpose without taking statistics into account. You can take it for any expenses that you have to pay. It could be improving your home or work office or you are going for a long vacation with your family.
Another reason behind taking more unsecured loans is that a vast group of banks and financial institutions doesn’t ask their customers why they are taking loans or what they are going to do with this money so you are free to use it for anything.
- To consolidate other debts
This is the main reason that people in Norway prefer unsecured loans. This is sometimes called refinancing where a consumer takes a big loan to consolidate his or her small debts like balancing credit cards or repaying a friend’s debt.
It is difficult to manage or pay many small loans. Taking a big unsecured loan is a cheaper way and it is easy to manage a single loan instead of managing many at the same time.
- To buy something
It has been observed that most people go for unsecured loans to buy a used product. Buying a new car means involving a dealership but by taking an unsecured loan anyone can easily buy a used car. Most people take loans to buy something. It could be a used car or other goods that they can not afford to buy from their monthly salary.
Ending Remarks
Taking an unsecured loan is very trendy in Norway and now more people are taking them and more financial institutions are also providing the facility to the public. Comparison services like Besteforbrukslån.no have facilitated and eased the Norwegians in comparing and choosing the best loan provider.
