Personal Bank Loan is a player in the so-called Gertech industry whose focus is to offer loans with all the function and service that people may want to get out of their regular bank, but perhaps rarely get in the current situation.
They place great focus on agility. For example, it should be easy and easy to apply for loans and that it should also be possible to manage and change their loan through the app. There is a high focus on user-friendliness, technology and offering the best possible features.
What sets Personal Bank Loan apart from most other lenders is that technology is at the center. Instead of being a traditional finance company that builds technology, Personal Bank Loan is a technology company that builds finance. Something that is also clearly visible in their app where the customer can manage their loan and everything around.
What does Personal Bank Loan offer for loans?
Of course, it is interesting to know what kind of loans Personal Bank Loan offers and what their terms look like, and we will look at that a little quickly:
You can get a private loan between SEK 10,000 – 300,000 with a maturity which is governed by how much monthly cost you want, which means a repayment period of between 3 and 12 years. If you extra-pay or change your maturity afterwards (read more about changing your monthly cost downwards), you can pay off at a faster rate.
You must be at least 20 in order to borrow and may, for example, have a permanent employment, be self-employed or a pensioner. Those who have payment remarks are not accepted. Since the focus is on technology and most of it is managed via the Internet and their app, you must have mobile BankID in order to apply for a loan.
Personal Bank Loan always takes a credit report when you make an application, like all lenders, to see how your payment options look. Personal Bank Loan then gives you a so-called Personal Bank Loan rating, which is a rating of your financial strength. This determines how much you can borrow and what interest you receive. The interest rate range is between 3.95 and 19.95 percent.
You can fix the application directly in their app or on the website. You use mobile BankID to identify you and sign the loan. In most cases, once you have been approved, the payment is made quickly. The setup fee is SEK 398 and otherwise there are no other fees such as newspaper fees or recurring administration fees.
You can do this yourself with your loan
Personal Bank Loan is investing in technical solutions to make it easy to manage its loan, mainly through Personal Bank Loanappen. There you can manage your loan and do several different things, such as changing monthly costs, paying extra on the loan, pausing their payments or extending the loan if needed.
Change your monthly cost
In most cases, lenders usually let you choose the maturity (how many years you want to pay off the loan) when you submit the application. You do this at Personal Bank Loan as well, but here you simplify by giving you the choice to decide how much you want to pay per month for your loan. The longer the maturity you have, the less you pay each month, so you can choose to have a small monthly cost (if you have a little less margins in your finances) and longer maturity, or vice versa.
It is an interesting arrangement when you focus on letting the borrower choose a monthly cost that suits his finances. However, it is good to remember that the loan becomes more expensive the longer you choose to have it, as you pay interest on the loan for a longer period. If there is a possibility, it is always good to repay a loan as quickly as possible, but this is not always a reasonable solution.
What I like is that it is possible to change the monthly cost (and in practice the maturity) of the app afterwards. If you want to pay off the loan a little faster or need a little longer on you, this is a good feature. This type of flexibility is exciting for a lender as it gives the borrower a chance to shape the loan according to his needs.
Extend your loan
Another of Personal Bank Loan’s features is that you can easily extend your loan if you need more money. The maximum amount is still SEK 300,000 in total and it is possible that there are limitations based on your Personal Bank Loan rating. But if the grade allows, it should be good to add a little more if the need arises.
Of course, Personal Bank Loan also offers the opportunity to make extra payments on its loan at no extra cost if you instead get some extra money over a month. However, this is something that can be done on all private loans, with all lenders, but being able to make these extra payments in a quick and smooth way is always welcome.
Pause the payment on the loan
A somewhat interesting feature is that it is possible to pause the payments on the loan for a full four months a year. This means that you do not have to repay / pay on the loan in those months. Of course, this also means that the loan will not be reduced during this time and that the debt will be saved until later. This has to be paid enough time, so you get nothing for free in that way. What you get is the opportunity to avoid spending certain months if needed.
The advantage of this is that you have the opportunity to control your loan in a better way and that you can actually take a break if for some reason you need to prioritize in your finances and it becomes difficult to afford the payments for a certain month. Waiting for payments makes the loan more expensive overall, which is worth knowing and this is of course something you should only do in emergency situations.
Everyone can get better
A little over a year ago, we wrote another blog post about Personal Bank Loan where we criticized, among other things, that their then special offer with a lower interest rate for new customers felt a little misleading. That you could believe that they offered this interest rate right through to all customers and that it was not just a two-month interest rate rebate (which is a big difference).
This offer has now been gone for a long time and therefore it is no longer unclear what interest rates can be obtained from them. This makes me happy, as I appreciate clarity and straightforwardness when it comes to loans and financial services. If a company can accept criticism and do better, then you have to be able to give them another chance. Especially when the company otherwise has an interesting business concept.