So where yes, now 2019 is beginning to come to an end and so Snaploan Financing thought about blogging a little a year, how the credit industry and Swedes ‘borrowing and savings changed during the year, and how the Swedes’ debts look. Let’s start by looking at the lending industry.
This is how the loan industry changed in 2019
In fact, there have been some changes when it comes to the products of banks and credit companies, although there are no extremely large changes. This is how it looks.
Increasingly sms loans
For several years now, the credit companies have started to offer ever larger sms loans. When the sms loans appeared in Sweden in 2007, the highest amounts were only a few thousand USD, but over time they increased to 10,000, 12,000 and then they passed USD 20,000. When the interest rate ceiling was introduced since September 1, 2018, many credit companies increased their maximum credit amounts further.
Even in 2019, the amounts have continued to increase. Today, most fast lenders offer loans of up to USD 20,000 – 30,000 and it is not at all uncommon to have higher amounts than that. At the same time, maturities have also increased. However, most fast lenders offer online credit instead of regular sms today, and there is no set maturity.
Increasingly private loans
Yes, even many ordinary private loans, ie, interbank loans, have become larger. This has certainly been going on for several years. A few years ago, the banks and credit companies rarely offered private loans in excess of USD 350,000, but in connection with the extremely low interest rate we had in Sweden for many years now, the loan amounts were higher. It became increasingly common for banks and credit companies to offer loans up to both USD 500,000 and USD 600,000 without collateral.
In 2019, the new normal has become even more credit companies and almost all loan intermediaries offer loans up to USD 600,000.
Longer maturities for private loans
Before 2019, the maximum maturities were 15 years, but during this year several loan intermediaries have begun to sign that you can borrow money for a full 18 years if you take out a loan without collateral. It is extremely long. It was not so long ago that the maximum term was 12 years with most credit companies.
The reason why the loan amounts have become higher and the maturities longer is obviously that the credit companies want to make more money on you. They also know that in any case in a few years the interest rate will go up and then they will earn even more from you if you have chosen a long term.
More and more loan brokers are fighting for the cake
A few years ago, more and more loan intermediaries began to emerge in the market and one might think that the market was saturated, but apparently it was not. Another new loan broker has established itself in 2019 and some of the established loan brokers have created even more brands.
Corporate loans are increasing explosively
There are no other loans that have had the greatest growth as corporate loans in 2019. A few years ago, most banks offered such loans and a small number of credit companies. Today, there are lots of corporate loans to choose from. Unfortunately there is nothing you as a private person can apply for, but we still thought it was worth mentioning it. After all, a lot of business people visit us.
Many times it is much easier to apply and get a business loan from all these new start-ups than with the bank, so if you are a business owner who needs a loan for your business it might be worth looking a little closer at these credits .
Slightly harder assessments for sms loans
We have chosen to add this item to this list. The reason for this is that we cannot say with certainty that the assessments for sms loans and fast loans have become harder.
On the other hand, our own statistics say that fast lenders do not grant sms loans as often as before. Of course, this could have to do with the new rules for high-cost credits, where one of the rules was that the credit companies would sharpen their credit assessments. And we feel that some of them have done it, but it is still much easier to get a sms loan than a regular private loan. The reason for this is that people who take sms loans usually borrow significantly less than those who take a private loan.
Swedes’ debts and savings in 2019
And now we will look at how the Swedes ‘debts developed in 2019. Unfortunately, Statistics Sweden will not release its overall statistics on Swedes’ debts in 2019 until after the turn of the year, but there is still some info on how the year looked like
Savings are reduced
According to Statistics Sweden’s savings barometer for the third quarter of 2019, the savings of the Swedes in comparison with the same period 2018. One of the main reasons for this is a lower savings account savings, which of course is due to the low or non -existent interest rate you get on your savings accounts today. This may change somewhat now that the Riksbank has finally abandoned the minus rate and raised it to 0%, at least within the next few years.
The loan increase ceiling is decreasing somewhat
Year after year, Swedes’ debts and the total loan amount in Sweden have increased, but now it seems that there is a trend break. According to Statistics Sweden, net borrowing decreased by 0.1% in the third quarter of 2019 compared to the same quarter the year before. Net borrowing is based on the Swedes’ new loans, less their repayments.
Already in April 2019 SVT announced that the Swedes are borrowing less, which was because the new mortgage repayment requirement was implemented. But ironically, the Swedes’ loan-to-value ratio increased at the same time. This was due to a fall in house prices, which automatically increased the loan-to-value ratio.
Increasingly large debts at enforcement authority
Earlier this year, he wrote that the number of cases at enforcement authority decreased in 2018 but that the total debt for those who end up there increases. Thus, the debts are fewer but greater.
Recently, they published fresh statistics for the third quarter of 2019 showing that the proportion of indebted Swedes is lower than in many years. Both the number of debtors at enforcement authority and the number of people who have payment remarks are less than five years ago. Of course, that’s good news! But at the same time, the Swedes’ debt mountains have become higher than ever.