Borrowing money can be a time-consuming process. Whether you need a quick loan of a couple of thousand notes or a larger private loan of 100 thousand USD , you obviously want to find a loan with the lowest interest rate. Today, there are a huge number of lenders in Sweden, who all compete for customers by offering as low interest rates as possible. Comparing all of these can take a lot of time. For this reason, many choose to use a loan broker, to save both time and money. Here we tell you more about loan brokers and how they work.
What is a loan broker and how does it work?
A loan broker is a company that provides loans (as the name implies). Thus, they do not lend any own money, but instead cooperate with a variety of banks and lenders and offer their services directly to customers.
The service works by applying for loans directly on the service’s website. That application is then forwarded to all the banks with which the loan intermediary cooperates. There are usually between 20-30 banks, where everything from major banks such as Nordea and SEB to smaller lenders. These will then process your application and return within a few days with a personalized offer. You can then easily compare and choose the cheapest alternative.
Advantages of loan brokers
The benefits of this type of brokerage service are many. On the one hand, they function as a price comparison service, where you can quickly get the cheapest price from a variety of companies. In addition, you only need to submit one application, which is then used to apply for loans from 20 – 30 banks at the same time. The application is not binding, and if you are not satisfied with any of the offers, you can cancel the process. Finally, the service is free of charge and only one credit examination is applied at the time of application. A loan broker makes money through commission from the loans they provide and does not charge any fees from the customers.
In summary, the advantages are:
- You save money and time
- You only need to fill in one application, which then goes out to many banks
- The service is not binding
- It is free to apply
- Only one UC check is made
Examples of loan brokers
There are a number of different services in Sweden that mediate private loans to Swedish customers. Here is a small selection:
- Reading. This is a service that is usually called “Sweden’s most popular loan intermediary”. They offer mediation of private loans of USD 10,000 – 500,000. The lowest interest rate is 2.95%. They cooperate with a large number of banks, as many as 30, so you have a high chance of finding a long-term private loan. You can read our review of Reading here.
- Smart Borrow. This is a free service that allows you to apply for loans from 30 banks and with a response within 24 hours. Here you can apply for private loans of up to USD 600,000, with up to 18 years of repayment period. We have reviewed Smart Borrow here.
- Freedom Quest Finance. Offers private loans from a variety of partners of up to USD 600,000, with a lowest interest rate of 3.25%. The installment period is up to 18 years and you can easily apply directly online. Please read our review here.