A consumer loan is an unsecured loan, which means that you do not provide security in assets, such as is the case with a home loan for example.
It is a simple and quick method of obtaining extra money when the need is there. The loan can be used for anything, such purchase of consumer goods, renovation projects, or holiday travel.
Many people also take out consumer loans in order to collect and pay off expensive small loans, such as credit card debt, which usually carries a higher rate of interest than a consumer loan. This can be a smart way of obtaining better control over your private finances, since you bind yourself to a fixed repayment plan.
EnterCard offers consumer loans in Norway through our own trademark re:memeber.
Shorter repayment time
With a consumer loan you can borrow between kr. 10 000,- –350 000,-. The repayment period is shorter than for other types of loan, such as a home loan. Normally it is between 1–15 years, dependent on the loan amount and the lender’s payment situation. You can also pay more per month than the repayment plan states, and you can repay the entire loan at any time, without extra cost.
A little higher interest rate
Since the consumer loan is a loan without security, the lender takes a much greater risk than by the issuance of a normal loan. The interest rate on a consumer loan is therefore higher than for a normal loan. The usual effective interest rate varies from 9–20 percent per annum.