Blancolån – Definition, Eligibility, and Application
The possibility of getting loans from financial institutions without presenting collateral is welcome news to many people. This is either because many do not have collateral to offer or because of the fear that comes with the possibility of losing it.
By the way, lenders can be very choosy when it comes to accepting collateral. For example, certain things considered assets may not be approved as collateral by lenders. This could be as a result of its depreciating value. You can read this article if you would like to find out more about what can be considered collateral.
A blank loan (which is translated as Blancolån in Swedish or Blankolån in Norwegian) is one of the unsecured loan options. A couple of things to know about this unsecured line of credit will be discussed in this article. You should pay close attention to the details given here because it will help you understand why you may need to get this line of credit or otherwise.
What Is a Blancolån?
Blancolån is a Swedish term that simply means blank loan. It is an unsecured credit line, which means collateral is not required for securing this loan. Furthermore, most people that take out this line of credit do so for personal reasons.
This is not one of those lines of credit that can only be granted if used for a specific purpose. Some of the things that it can be used for include – home renovation, debt refinancing, real estate purchase, and even for the financing of personal expenses.
Most unsecured loans usually come with higher interest rates and other fees. This one is no exception. However, the exact percentage of interest rate and other fees are determined by several factors. Majorly, the creditworthiness of the applicant is the biggest determinant.
There are a lot of benefits that can be enjoyed with this type of loan. You can visit: https://forbrukslånlavrente.com/blancolån/ to find out more about the benefits of applying for this type of credit facility.
Eligibility for Blancolån
People hoping to secure this line of credit need to be eligible to obtain it. Traditionally, it was often granted to long-term clients of financial institutions that show interest. But the narrative is quickly changing. As a result, even new clients of these financial institutions can get it.
This is provided they are eligible and go about applying for it the right way. Some of the things that qualify borrowers as eligible for this loan include the following:
1. Income & Employment Status
Lenders are more likely to exercise extreme caution before granting Blancolån to borrowers. The fact that it is an unsecured line of credit is the obvious reason for this. This implication is that no collateral can be repossessed by the lender if the borrower does not perform his/her financial obligations, as agreed.
The income of the borrower is one of the things that lenders will pay attention to. They need to be certain repayment will not be a problem by examining the income of the prospective borrower versus his expenditure. This is known as the debt-to-income ratio.
The person’s employment status will equally be examined. For instance, answers to the question of how well the person can and has kept a job will influence the decision to grant this loan or otherwise.
2. Credit Profile
Information Technology and legitimate access to pertinent databases make it possible and easy for lenders to get vital information about prospective borrowers. The credit profile of people hoping to get this kind of loan is one of the pieces of information they set out to get.
By credit profile, we are not just talking about the credit score of the loan applicant. It is also about the history of taking out loans. The lender would need to know how the applicant has handled repayment. For instance, questions bothering around if the borrower pays back his/her loan on time will need to be answered.
3. Loan Amount
The loan amount that the applicant hopes to get also determines the level of risk involved in granting it. So, more caution will be exercised if the amount is high.
By the way, the maximum amount that can be obtained using this unsecured credit line is not only determined by the lender. The location can equally be a determining factor. For example, the maximum is around 600,000 Norwegian Krone in Norway.
Fiscal policy changes could alter this set maximum limit eventually. This goes to show how the location also determines how much can be gotten with Blancolån.
4. Age of the Applicant
There are terms and conditions for receiving loans in Norway and every other part of the world. One of the conditions is to be within a certain age bracket.
People outside the age bracket are not considered eligible for this loan. So, you need to be aware of the eligible age bracket and be certain you fall within it.
5. Residency Status
You must be considered a resident of the location before you are granted a Blancolån. Immigrants can get this loan but they have to attain some form of residency status that qualifies them for it.
How to Apply for Blancolån
There are three application options for people who want to secure this loan. These options are:
Direct Contact with a Lender
It is that straightforward. You reach out to the lender directly and apply for the loan. Certain details will have to be submitted (by the applicant) and reviewed (by the lender) to determine eligibility. Even if you are considered eligible, the features of your details will be very important, especially for deciding interest rates and other loan terms and conditions.
One of the major problems with this application method is that it is not time-saving. This is especially given how people are advised to compare the loan terms and conditions of several lenders before making their choice. Going by this, it means that you would have to spend too much time reaching out to lenders, one after the other.
Using a Finance Portal
There are special online portals that allow people to compare Blancolån services from different lenders. People who use such would have a fair idea of loan terms and conditions by respective lenders.
This leaves them better informed before reaching out directly to a lender(s). Besides, these finance portals usually have online links and some other details of the lenders who are advertised.
This seems like a better option when compared to the aforementioned one. However, it does not rule out the fact that direct contact with the lender will still have to be made by applicants. This is why the last option seems like the best choice for those considering getting this line of credit.
Using a Loan Agent
These professionals go by several names. They could be termed loan brokers, financial agents, or even mortgage brokers as well. Applying for a Blancolån using the services of a loan agent simplifies the whole application process. For starters, this is because you would not have to contact several lenders by yourself.
The loan agent will go over your credit profile and other things that make you eligible for this line of credit. Afterward, this professional will reach out to a bunch of lenders who happen to be professional contacts. Several offers will be presented and you would have to choose your preferred one.
By the way, this professional is also supposed to advise you on the one to choose by filling you in on the implications of taking out several loan options.
Conclusion
People are supposed to make the right decisions when it comes to taking out loans. One of the ways to be sure of making the right decision is to be properly informed. This article hopes to have left you properly informed about the features, application options, and what makes people eligible for a Blancolån.
