It wasn’t many years ago that applying for a loan was a long, laborious, and intimidating process. Now, that’s all changed thanks to the digital lending revolution and the rise of alternative lending online platforms. There is no need for daunting face-to-face meetings with prospective lenders. It can all be done online from the comfort of your own home or from anywhere as long as you have a computer, laptop, tablet or mobile phone and a Wi-Fi signal.
Fintech and the Future of Lending – How Digitalisation is Reshaping the Borrowing Landscape
Before the introduction and advancement of digitalisation, applying for consumer or business loans was a tiresome, lengthy process. There were complicatred forms to be completed and lengthy waiting times to be endured. Banks and building societies used to be the only legitimate sources available to potential borrowers, and they controlled the entire lending scene.
The rise of Fintech and online loan tendering companies has put an end to all that, and as time progresses, with the introduction of AI and advanced algorithms, it’s likely to become even easier and quicker to secure the finance you need.
The Role of Loan Comparison Platforms in Smarter Financial Decision-Making
When you need a loan, whether as an individual for personal reasons or as an entrepreneur or owner of a company for business reasons, you need to know quickly what options are open to you. The more options you have, the smarter your decision-making process can be, which is where online comparison platforms come into the picture. You not only get quick decisions on loan applications, but you also get a choice of up to 30 different loan offers from various banks and finance companies.
Short-Term Loans vs Long Term Credit
Generally speaking, the shorter the term over which you repay a loan, the better the interest you’ll be offered. But of course, the shorter the term, the higher the monthly repayment amounts will be. So, you need to weigh up your options to find the most suitable deal.
Comparison sites have loan calculators on their websites, which give you an immediate guide as to what the repayments will be depending on the size of the loan and over what period you want to make your repayments. All you have to do is slide the buttons of the calculator to the options you want to check, and you’ll get your answers immediately.
You can select private loan amounts on the Pika Laina tendering website of up to €70,000 or business loans up to €10 million on terms of 20 or 4 years, respectively. We discuss business loans in the next section in more depth.
Applying for Business Loans in the Digital Age
SMEs are the main economic driving force in most countries, and Finland is no exception. According to the Statistics Finland website, there were 579,364 of them as of the end of 2023. SMEs are categorised as businesses that employ between 1 and 249 employees, with a turnover below €55 million per annum.
Whether it’s to buy stock and raw materials, plant and equipment, manage cash flow, or fund expansion, most SMEs need business loans at some stage. If you’re a Finnish entrepreneur or SME business owner, it’s a good idea to go through business loan tendering sites like this one
You can apply for loans up to €8 million without collateral or guarantors through both of them, although that amount is way above what most SMEs would need or ask for. For larger loan amounts, you might have to wait a little longer for answers, but no longer than 24 hours. It’s way, way faster than going through the traditional banking system.
Private Loans for Renovating Your Home
On the private loan front, many homeowners look to borrow money to cover the costs of renovating their homes. In some instances, the money is needed for urgent repairs, while in other cases, it’s wanted for modernising or doing property extensions. One of the top loan comparison websites is this. They gather loan offers for you to compare from €1,000 to €70,000 in the blink of an eye. They do so without you having to put up any collateral, too. Applications via their service won’t cost you or commit you to anything.
Taking a Private Loan for Debt Consolidation
The past 3 or 4 years have been tough, not only for Finns but for people all over the world. The COVID-19 pandemic saw many people having to work reduced hours or work remotely, and there were job losses, too. Finland fared better than many countries, but then along came the Russian invasion of Ukraine, which sent the cost of living soaring on a global scale.
Many consumers had to resort to taking loans to tide them over – several loans in some cases. Now the dust has settled, a lot of indebted consumers are having to deal with numerous repayments, many with high interest rates. The best answer to this dilemma is to apply for a consolidation loan. If you visit the Yhdistelylaina website, you’ll see that they specialise in competing, on your behalf, for consolidation loans of up to €70,000.
A consolidation loan can reduce your repayments significantly and save on other costs, such as management fees, too.
Smart Borrowing Can Result in Financial Freedom
Smart borrowing is a direct result of the digital lending revolution. The growth of loan tendering or comparison sites that employ high-tech algorithms and use the power of AI has changed the lending landscape forever. It has brought financial freedom within the grasp of many consumers and entrepreneurs.
Even the way that credit rating scores were evaluated has changed, so even if at one stage you thought your old credit rating might have been prohibitive, it may no longer be the case. Why not visit one of the loan comparison sites mentioned above to see if you can change your personal financial outlook for the better and reach the goals to which you aspire?
