A good example is Norway and the products available there known as smålån, or mini loans without unnecessary formalities.
What are smålån?
Norwegian smålån are products similar in many respects to Polish installment loans available from banks and non-bank institutions. Their characteristic feature is that they are easy to obtain and available to a broad group of customers. In many cases, the only formality the customer must complete is providing an electronic signature through BankID.
Smålån are loans most commonly ranging from 2,000 to 100,000 kroner, although some companies offer smaller or considerably larger loans, reaching as much as 500,000 kroner. The borrower repays the obligation in monthly installments.
To obtain a smålån, it is necessary to submit an application and provide the appropriate signature. Based on the information supplied and details about the potential customer recorded in registers, the bank or non-bank company decides whether to grant the requested loan amount. This decision is usually issued within a few hours of submitting the application or on the next business day, because approval does not require verification of an employment contract or the amount of the applicant’s most recent earnings.
Requirements for mini loans
To receive a mini loan, it is necessary to have a Norwegian residential address. Living at the same address for a longer period increases the likelihood of demonstrating high creditworthiness, as companies and banks sometimes consider how frequently an applicant changes address. Frequent moves may therefore reduce creditworthiness.
The potential borrower’s age, receipt of a regular salary from employment or benefit income, and a record of timely repayment of other financial obligations are also important. The last condition is usually the most significant and has a major influence on whether a positive loan decision is issued.
Advantages of smålån
Norwegian mini loans are widely available. Fast decisions, minimal formalities, and the possibility of spreading repayment over time make them a good way to finance unexpected expenses. Another advantage is the opportunity to take out a loan not only from a bank. They are also available online, for example at https://www.smålånutensikkerhet.com, where several offers from different companies can be compared.