Finland is very popular among Russians: many come here to relax, study, work, and do business. Among the reasons for this are the geographical proximity and accessibility of the northern neighbor, its membership in the EU, a stable economic and political situation, and high living standards. However, Finland is one of the most expensive countries in Europe. Accommodation, buying a car, studying at the university require significant financial investments. The situation can be saved by a loan in Finland.
Conditions for obtaining a loan by a citizen of the Russian Federation
Foreign citizens have the opportunity to take out a loan from a Finnish bank, and this is not only about residents from EU countries. Finnish banks meet halfway clients from abroad, including from the Russian Federation; both individuals and legal entities.
Credit conditions may be specific for each borrower. Before giving a loan, the bank must take into account a number of factors: the type and purpose of the loan, the client's solvency.
Lending in Finland will be possible only if the client meets the basic criteria. Foreign clients from non-EU countries are subject to more stringent requirements than Finns or EU citizens.
So, a citizen of Russia must:
- be of legal age;
- be no older than 65 years of age at the time the loan is repaid;
- have a positive credit history;
- have an official source of income in Finland;
- have a legal status of being in the country (residence permit, permanent residence);
- prepare a complete package of papers.
If necessary, the presence of guarantors may be required.
Documents for applying for a loan in Finland
If a citizen of the Russian Federation wants to apply for a loan at a Finnish bank, he will need to prepare a package of documents depending on the type of loan desired. A standard baseline list includes:
- valid international passport;
- confirmation of legal residence in Finland (residence permit, permanent residence, etc.);
- certificate of income for the last two / three years;
- confirmation of the timely payment of previous loans, if they were issued in Finland.
To obtain a mortgage loan, you will need a purchase and sale agreement, real estate appraisal. For a student loan - a document of admission to a university, a permit to stay in the country on the basis of study. In some cases, the bank asks to confirm the presence of valuable property in the Russian Federation, for example, real estate.
The documents must be notarized, and those written in Russian must be translated into Finnish or English (depending on the bank).
Fast loans in Finland
Today in Finland about 90 private firms and companies provide quick loans to clients (www.credigo.fi, www.ege.fi, www.everyday.fi, www.lainasto.fi). Offers and conditions may differ in detail, but the essence of the service is the same: the client has the opportunity to quickly get a small loan for an amount of, as a rule, from 50 to 1000 euros (in some companies - up to 2500-3000 euros) without any checks on credit history or providing guarantees ...
The term of the agreement is up to 30 days. Among the advantages of fast lending:
- efficiency. Online or via SMS, you can get the required amount in 10-15 minutes;
- no credit reporting required;
- the probability of obtaining a loan is almost one hundred percent;
- no need to inform the creditor about the purpose of using the money;
- the ability to extend or refinance the contract.
The main disadvantage is very high lending rates, as well as the fact that only citizens and permanent residents of Finland can take advantage of such lending.
The country's government has introduced an annual percentage "ceiling" for quick loans - no more than 50.5%. This was done to protect the interests of citizens, since credit companies could previously charge up to 1000% per year, which led to arrears. As a result, many Finnish citizens were unable to make their contributions on time and ruined their credit history.
Today, monthly rates range from 3 to 5%. A lifting commission is also charged (up to 15%). In general, practice shows that it is worth resorting to fast lending only in extreme cases.
Consumer loans
Unsecured consumer loans are very popular in the country. With the help of such a loan, you can make small and large purchases, make home renovations, and go on a trip.
You can take out a loan in Finland without paying a collateral, on the basis of only a positive credit history. From January to May 2021, the volume of such loans in the country increased by 13% compared to 2021, and as of December 1, 2021, the volume of consumer loans amounted to 15 818 million euros, with an average interest rate of 5.7%.
Large banks (Nordea, Osuuspankki, Danske, S-pankki) offer loans from 1,000 to 15,000 euros. For loans up to 12,600 euros - at an annualized rate of 6.5%, over - 3.05 (but you need a guarantor). There are no early repayment penalties.
On their websites, banks (for example, Osuuspankki) offer, using a special calculator, to choose a feasible monthly payment, calculate the loan term and full cost.
Long term loans
Foreigners, including those from the Russian Federation, have the right to obtain long-term loans in Finland. In such cases, we are talking about large cash loans with a long repayment period. However, foreigners who are not EU citizens do not have to rely on loans with a maturity of 35-40 years: at best, when buying a house or land, they will be able to get a loan in Finland for 8-10 years.
Long-term loans in Finland include car loans, mortgages, student loans and others.
Car loans in Finland
Buying a car on credit in Finland is quite affordable for Russians. To do this, you can use one of the options:
- get an unsecured consumer loan from one of the banks (up to 15 thousand euros). The car immediately after the purchase becomes the property of the buyer;
- apply for a bank loan in a car dealership. The seller will fill out the contract and the loan application - the car itself appears as a collateral. The client enters into ownership only after paying the last installment.
The down payment when buying a car is usually 10-20% of the price of the car for new and 20-30% for used cars. The loan repayment period can be from 1 to 6 years.
For example, a loan of 10 thousand euros for the purchase of a used car with 4.90% per annum will be repaid within 5 years, and the overpayment amount will be 2,053 euros.
Mortgage for citizens of the Russian Federation in Finland
Foreign citizens are not limited in their right to obtain a mortgage loan in Finland. However, for citizens of the Russian Federation, mortgages in Finland will be less profitable than for citizens of Finland and other EU countries.
So, the loan term for Russians is from 7 to 10 years instead of 30 - for Finns, and the interest on a loan in Finland will be from 6 to 9% instead of 3-4.
Citizens of the Russian Federation aged 21 to 65 can apply for a mortgage. The bank requires you to submit a full package of papers:
- copy and original of the passport;
- deed of purchase for real estate;
- certificate from the place of work;
- certificate of income for the last two / three years;
- bank statement;
- confirmation of a positive credit history.
When applying for a mortgage loan, the client will face additional costs: paying a commission to the bank, assessing the value of real estate, paying for the services of a translator and a notary.
Student loan
Free education in Finland in 2021 is preserved for listeners who study in Finnish and Swedish. From 2021, paid education was introduced for foreign citizens who entered English-language programs.
The cost is determined by the universities themselves. More demanded educational institutions set higher prices, and given the high prices for accommodation, a loan in Helsinki will be useful for a student.Unclaimed universities charge a symbolic price.
Students over 18 years old in Finland have the opportunity to get a favorable loan for studies - 650 euros per month (up to 18 years old - 300 euros). University students automatically receive a student loan guarantee.
Schoolchildren need to apply for benefits to Kela (an organization that deals with social benefits for the population).
Obtaining a loan will allow you to focus on your studies, the money can be used to buy textbooks, clothes, food, rent housing, etc. There is no monthly loan repayment, and it must be returned two years after graduation.
Loans for business
Lending to small, medium and even large businesses is common in Finland. Loans to businessmen are usually arranged here by state and private banks.
When an entrepreneur is still a beginner or does not have the necessary guarantees or funds for self-financing, he should contact the state investment company Finnvera (www.finnvera.fi), which, if there is potential for the company's profitability, can issue a loan itself or provide guarantees to the bank.
The loan rate in Finland, the size of the loan depends on the business idea and the reliability of the borrower. Before obtaining a residence permit in Finland, Russian businessmen will most likely be denied credit.
The Finnish Bureau of Employment and Economic Development (TE) (www.te-palvelut.fi) acts as a lender and provides permanent start-up opportunities for aspiring entrepreneurs and unemployed people who legally reside in the country. The start-up loan (Starttiraha) is designed for 12 months. Its size is calculated by the formula:
32.40 euros (basic daily allowance - peruspäiväraha) x 5 (days per week) x 4 (weeks per month) x 12 = 7776 euros.
Banks in Finland that work with foreigners
There are more than 300 banks in Finland, most of which are commercial and cooperative. Almost all of them are ready to issue credit cards for foreign citizens, but at the same time they adhere to strict rules: a foreigner must legally stay in the country - live, own real estate, work, study.
The most popular banks in Finland:
- State Bank of Finland;
- Aktia Bank;
- eQ;
- Nordea Bank;
- OP-Osuuskunta;
- S-pankki;
- Danske;
- Skandinaviska Enskilda Banken;
- Pulkkilan Osuuspankki.
Let's summarize
A Russian citizen is quite capable of taking out a loan in Finland, despite the tightening of banking requirements for foreigners. To do this, you just need to comply with the established rules: be an adult, but not older than 65 years, have legal resident status and a permanent source of income in Finland, have a positive credit history, prepare all the necessary papers.
The low interest rate on loans in Finland and the further prospects of living, working, studying make lending in this country profitable for Russians.
