If you want to apply for a loan and compare different offers, you can either apply yourself through several lenders or use a loan intermediary. More and more people are using loan intermediaries because these make it easier to compare loans and the road to finding a loan that best suits their financial needs shorter. Learn how a loan intermediary in Scandinavia can help you find the best offer.
With that said, a loan intermediary makes it easier to obtain an overview of the loan providers that offers loan. The application process is also faster if you want many offers to get the best possible basis for your loan comparison. Here is what you need to know about a loan intermediary and how they can help you find the best offer.
How a loan intermediary works
In short, a loan intermediary’s job is to obtain offers for private loans on customers behalf. When someone send an application to the intermediary, they forward their application to all the lenders they work with. So instead of sending applications to various lenders and/or banks, the loan intermediary does this for you.
Due to a high demand for consumer loans recently, the number of lenders in the market has increased, and so has the number of loan intermediaries. A popular operator for loan intermediation in Sweden and the rest of Scandinavia is Loanscouter, who you can LoanScouter to more easily find a cheap loan that suits your needs.
Loan intermediaries should not be confused with lenders themselves, i.e., the loan itself is not paid out by Loanscouter. However, you send an application with the help of Loanscouter and then this application is forwarded to the respective lender that they work with. Within a day, you should receive several offers and can then choose which option is best suited for your situation.
Why loans through intermediaries tend to be cheaper
Loan intermediaries mean better competition on the market and therefore it is quite logical that a consumer loan mediated by a loan intermediary is cheaper than other consumer loans. When the loan providers receive the application from the intermediary, they know what they are just one of the companies that are fighting for the same customer. This often leads to them offering lower interest rates.
It is important to remember that the loan’s interest rate also depends on the borrower’s creditworthiness, which in turn means that the borrower with a bad credit score will still have a lower interest rate than the borrower with a good credit score. Further, it is worth noting that other fees may also come in connection with a consumer loan, such as a set-up and delay fees.
