A secured loan is simply a loan you can take out without having to provide collateral or a guarantor. This is a loan you can use for exactly what you want, eg renovation, new car or other goods. The disadvantage of unsecured consumer loans is that they are considered less secure by the banks and they therefore adjust interest rates. All offers on this type of loan are non-binding, so you do not need to take all the loans you are applying for.
It does not mean that they do not impose any other requirements on you. A credit rating will reveal if you have any debt collection or payment notes. This will determine whether or not you will be granted a consumer loan.
Maximum repayment period is 10-15 years. The loan amount is usually somewhere between NOK 10,000 and 360,000. When the bank has a credit rating of you, they find the effective interest rate. This is usually somewhere between 12-20%, but of course it depends on your personal finances and the loan amount.
The banks market with a guiding interest rate, so you can experience getting both higher and lower interest rates than stated. Establishment fees and termination fees are always included in the effective bank gives you. Therefore, you do not have to compare anything other than the effective interest rate from the different banks.
What is important to keep in mind with a consumer loan? As with any other type of loan, you can deduct 28% of the interest expense on the tax. It is recommended that you pay down this type of loan as soon as possible. If you have money to spare for a month, pay extra on the loan, it will pay off. If you spend longer than planned to repay, the total interest expense will be higher. Payment deferral and / or interest exemption also increase interest expenses, so avoid this as far as possible.