Saturday, December 19, 2020
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Loan market glossary – All important words and concepts!

We have collected the most common words that can appear in connection with loan applications. If you miss a word, feel free to contact us.

Common words

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Quick loan – A collective term that applies to smaller loans and credits that are usually on lower amounts and with shorter repayment periods.

SMS loan – Another type of fast loan where the name comes from the fact that you initially asked for a loan by sending an SMS. An easier and faster way to get a smaller loan.

Without UC – To make a credit report that does not use UC (The Information Center) but instead uses other credit information companies such as Bisnode or Creditsafe. However, a credit report must always be made every time a customer requests a loan.

Payment note – If an invoice or similar is not paid and the company passes it on to the chancellor, you can get a payment note which then reduces your chances of getting a loan in the future. The payment note is later shown on a credit report.

Effective interest rate – The interest rate on a loan is what determines how much you need to repay. Effective interest rates include all fees that exist such as mortgage fees etc. to give you the actual value you need to pay for the loan per year.

Interest-free 

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There are many different lenders that attract interest-free loans. Usually it is only for new customers and applies to low amounts with short repayment periods. This should be considered as a kind of advertising to attract new customers.

Delay Interest Rate – If you let an invoice or monthly fee on a loan fall due, the lender can charge an interest which is then ongoing until the amount in question is paid. The amount of interest depends on the lender.

Amortization – When you choose to repay, you repay parts of the loan instead of just paying interest. In this way, the size of your loan decreases.

Amortization Time – This is the time your loan is over. You will be immediately informed of the amount of time you spend on the loan. In many cases, you can also repay the loan earlier if you have the option of not paying more interest.

Credit Check – This is done every time someone applies for a loan. Such an examination is to verify whether the person in question is considered able to repay the loan. Many different aspects are verified.

Application fee 

Application fee 

In some cases, there is an application fee for taking a quick loan. These types of loans should be avoided as it should only cost money once the loan has been accepted.

Startup fee – Many lenders use some kind of startup fee, especially for loans with lower amounts. This fee should always be taken into account when calculating how much a loan will cost in the end.

Account Credit – This type of quick loan works similar to a credit card where you have a certain amount of money you can use but only pay interest on the amount you actually charged. This can be perfect if you do not know how much you need to pay such as a building or vacation.

Direct Payments – Many lenders now have a system where you can get your money into your account within a few minutes or hours. This is if you get the loan granted before a certain time of day. However, it is required that you and your lender use the same bank for this to work.

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