Every one of us has sometimes found ourselves in a tight spot. After all, life can be chaotic and unpredictable, and you never know when you might fall on hard times. Then, any help can be welcome and relief.
Indeed, during this previous year and the ongoing pandemic, many people have lost their jobs. Some of them who might have had the misfortune to contract the virus could have also accumulated incredibly high medical bills.
One proof of that is the astronomic rise in fundraising campaigns organized by folks who need help getting by. Many of them ask for assistance with affording rent, groceries, and hospital stays on platforms such as GoFundMe. If you want to learn more about this situation, follow this link: https://www.nytimes.com/2020/03/26/style/gofundme-coronavirus.html
Needless to say, the number of individuals that are struggling is growing every day. The majority of them do not know where to turn, and while help from the community will undoubtedly do in the short-term, it is not a very sustainable method of surviving.
Taking the safe route
Of course, a safe option you can always take is to ask the bank for a loan. They usually have a lot of offers that fit the profile of almost everyone. Despite this, a lot of people are intimidated even to consider this alternative. They think they will not qualify and do not even try finding out all the information to help them attain a loan.
Unfortunately, this line of thinking can push them into more dangerous territory, as they might risk unsafe means of obtaining money, such as through SMS loans or loan sharks. In the long run, this could lead to tremendous problems and even criminal activity. Obviously, no one in such a precarious position wants to find themselves in trouble with the law.
Well, the good news is, you will not have to try any of those dubious techniques of obtaining money. You can quickly get a personal loan that will fit whatever needs you might have at the moment and pay it off in the future when you are ready.
In this article, we will attempt to answer all of the questions you might have before embarking on this exciting but challenging journey. Do not worry; we have come prepared and ready to take you step-by-step into the world of loan applying!
Checking off the checklist
First of all, before you start collecting documents or calling up banks, it is vital to see if you fulfill the basic requirements for obtaining a loan. These requirements are mandated by the government and therefore independent of any banks. They do not vary across different institutions, but to be considered and qualify for the application; you still need to satisfy them.
One of them is that you have to be at least above 18 years of age. That means that you are not allowed to take out a loan from any bank in the country unless you are an adult. This rule was put in place to implement safety measures for minors and prevent parents from using their children for getting loans and ruining their credit score in the future.
However, some banks do not consider 18-year-olds sufficiently grown up to take out a loan. They might increase their requirement to up to 25 years before they approve your application. You might be curious why this difference exists. Well, banks want to protect themselves too and need proof that you will pay out the loan in the future.
Unfortunately, not many 18-year-olds have a full-time job and stable income that will support monthly payments to the bank. Sure, they might have done some waitressing as a summer job or worked at a fast-food place on the weekends, but that is hardly enough to sustain such a demanding process. That is why banks believe that by 25, most people will have secured stable employment, allowing them to repay their loans and thus be a low-risk candidate for the institution.
If you wonder about the amount of income you need to have, you would not be the first one! That is also one of the things that are checked on your application to determine your eligibility. Luckily, the number is not too high. Plenty of banks have low income requirements and usually ask for around two hundred thousand Norwegian kroner.
Dotting the i’s and crossing the t’s
Moreover, you need to provide proof of a residential address in Norway along with your ID and income. The bank then rechecks this with the population register in the municipality, so be honest about your living place because you could find yourself in big trouble if they find out you lied!
In some cases, you might be asked if you have Norwegian citizenship as some banks only give out loans to Norwegian citizens. If you do not, there is no reason to panic! Having worked in Norway for the past three years or more could also satisfy this requirement given you provide tax returns from the previous three years. Nevertheless, we still advise that you contact the institution you consider applying to and ask them specifically for what they require.
Furthermore, make sure that when you are applying for a loan that you do not already have other payment remarks or a debt collection case against you. In fact, this could seriously hurt your chances of getting your application approved.
Lastly, expect to undergo a customary credit check before being granted a decision. This is a routine procedure in most banks, and it serves a purpose to provide an overall assessment of the applicant’s finances. It also gives insight into your past credit history, reflecting on how you would pay off the loan you are asking for. This is usually the last step of the application process and decisive in your application’s outcome.
The final stretch
After all of that is said and done, you might start thinking about the amount of money you plan to ask for. Bear in mind, this figure needs to be attainable and within your means to repay in the given time. The minimum amount that banks will provide you is somewhere in the ballpark of twenty thousand Norwegian kroner. Still, you could even ask for the maximum, which is six hundred thousand Norwegian kroner, but that application is less likely to get approved if you do not satisfy the requirements.
Once you have submitted every document and proof, it is time to wait for the decision. For a lot of people, this can be nerve-wracking. Fortunately, it does not have to be! With unsecured loan providers such as Billige-forbrukslån you can get the decision on the same day! That way, even if you get rejected, you will know whether to start applying to other banks.
To sum up, the road to getting your dream loan is complex and rocky, but as long as you know what you are doing, it can be more accessible. Just make sure to comply with the rules and the requirements given by the government and the banks, and you will be fine. We wish you a lot of good luck on the journey!