In connection with any kind of loan, the bank will require some kind of security that the loan applicant is able to make repayments i.e. has an income. Most loans have a floating interest rate, which means that it follows the market rate. A fixed interest rate gives the customer financial predictability. Usually, a fixed interest rate is more expensive than a floating interest rate in the long run, and it is normally only recommended if the household cannot afford an increase in the interest rate. A credit check will be performed in connection with all loan applications.
Consumer loans
Many financial institutions offer customer or personal loans in connection with the purchase of goods and services. These loans are usually short-term and have very high interest rates. Normally, a consumer loan will be very expensive.
