Immediately after the September 2019 law change, we made a comprehensive comparison of consumer credit interest rates and anticipated pricing during the lively autumn. This is what the interest rates look like one month after the law change.
Competition is tightening
The comparison includes 22 major lenders who report the lowest and highest unsecured interest rates on their pages. Lenders offering interest rates below 8% can be found in the comparison of 12, nine of which operate online without a branch network.
The comparison includes five account banks operating in Finland, three of which offer an interest rate of less than 8% on an unsecured loan. The interest rate on the Danskebank overdraft is measured at the most expensive from the account bank products included in the comparison.
Note, however, that often a lower interest rate means higher other costs. Therefore, it is worthwhile to make a more detailed loan comparison by asking for personal loan offers for the desired loan amount and loan term. The comparison should be based on the annual percentage rate of charge, which takes into account not only the interest rate but also any other loan costs.
Lenders make loan offers based on a customer-specific risk assessment, which is why the lowest reported rate is usually not offered to a small number of customers. On the other hand, risk-based pricing allows you to lend a loan to more than one customer, rather than refusing a loan or consumer credit offer at all.
You can get a lower interest rate through a loan comparison
Some loan providers charge different rates for loan offers, depending on how the application is submitted. By bidding through a loan comparison, you can get a loan at a cheaper rate than applying directly to a loan provider.
In the loan comparison, banks compete for the applicant’s customer relationship with dozens of other lenders and give their best bid on the loan applied for.