 Finnish
Bank Loans
Finnish
Credit Cards
Interest
Rates on Credit Cards & Loans
Additional
Information
Housing Loans: Detailed information on Finnish housing loans is included in Expat Finland's Housing section.
Finnish Bank Loans
Criteria for Obtaining a Loan: As in any developed country, your chances of getting a loan
in Finland depend upon your income, how
much you want to borrow, your residence status, your credit
rating and history, and your guarantor(s) if available. The primary criterion for obtaining a loan is thes capacity to repay the debt. Steady income is a major plus, but having a temporary job is not necessarily an obstacle to obtaining a loan if employment prospects in the industry are good.
Applications: Contact the banks directly
to arrange interviews. You can make a formal loan application at an interview if you wish.
Some Tips:
- Make enquiries to as many banks as you can to see what they
offer - the differences in rates, margins and charges
can be substantial
- The banks have specialists who will also explain tax
issues - they will tell you which documents the tax authority
requires
- Make sure ALL documents are translated into English,
not just the ones the bank suggests are appropriate
Finnish Credit Cards
A recent immigrant to Finland will usually
find it difficult to get credit until they have established
a significant bank account and a history of steady employment.
Experiences with applications for a credit card appear to
vary widely between banks, end even between branches of the
same bank.
Essentially, if you have been in Finland
long enough to establish a satisfactory credit rating and
you have a regular income, you should have no trouble getting
a credit card. But, how do you get a credit history when
they won't give you a loan or credit card without one? The
regular income aspect goes a long way to making you a viable
risk, and long-term residency doesn't hurt either. However,
a huge sum of money in the bank will NOT necessarily warrant
approval for credit. All you can do is ask.
If you are self-employed, chances are you
don't have a regular income. When applying for a card you
will be asked to provide your company's profit/loss statements
for recent years - if these look promising you will once
again be in good stead to be approved. However, it may be
that you are self-employed and have only been resident in
Finland for a relatively short time!
One option, if you absolutely require a
credit card and have the requisite funding, is to pay a security
deposit to the bank. The deposit will be three times the
amount of the credit limit for which you are applying, and
will be held by the bank for a period of three years. If
you pay your bills on time for that period the bank apparently
then considers you a safe bet, and will return your deposit.
Interest Rates
on Loans & Credit Cards
Source: Bank of Finland
The average interest rate for consumer credit in Finland was 4.83% in March 2011. The rate was quite stable over the preceding 12 months.
The average interest rate on new housing loans in Finland was 2.40% in March 2011. The current trend is a steady increase; in March 2010 the rate was 1.9%.
Comprehensive statistics on loans, deposits,
housing loans, student loans and more are available at the Bank of Finland (Suomen Pankki).
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