Consumer Loan from a Bank – Swedbank or Luminor?

In today’s world, finding a quick financial solution for emergencies is essential. Getting money quickly can make a big difference, whether unexpected medical bills, home repairs, or other sudden expenses. 

For Topkredit.lv readers, understanding which loan to choose when time is short helps them make the right decisions. This article will compare two personal loans from Swedbank and Luminor. Our main criteria will be to obtain a loan of EUR 6,000, focusing on the most favorable conditions and the speed of drawing funds.

The traditional approach to lending

Although consumer credit is available around almost every corner nowadays, responsible borrowers will not take out a loan from the first creditor they meet. They may seek good old-fashioned loans from banks known for their reliability.

They also offer easy repayment plans and favorable interest rates. In addition, you can discuss your financial needs with a bank employee and get advice on the best loan product for you. In addition, automatic credit payments from your account often make it easier to repay the loan.

Reliability and trust in Swedbank

Swedbank stands out in the Latvian financial market for its versatile banking services. Known for its large customer base and extensive ATM network, Swedbank is a convenient and valuable bank among its customers.

The application process for a Swedbank small loan is straightforward. Potential borrowers can fill out an application via online banking in just a few minutes and sign a contract immediately, ensuring a fast loan disbursement.

Swedbank can meet various financial needs with an annual interest rate of 9.9% and loan amounts ranging from EUR 300 to EUR 20,000. It is important to note that the bank offers the possibility of repaying the loan early at no extra cost.

Luminor – consumer lending competitor

Although Luminor is smaller than Swedbank, it has become a significant player in Baltic banking, offering a personalized approach to consumer loans. The bank emphasizes its ability to provide customized loan offers quickly. 

According to the bank, Luminor’s consumer loan amounts from EUR 1 000 to EUR 15 000 for up to 5 years are available at the most favorable conditions, starting from 9% per annum. They also offer remote application and immediate disbursement of funds after signing the contract. Thanks to payment protection insurance, repayments can be made without worrying about emergencies.

Which bank is the best to take out a loan with?

Having read a brief description of the two banks and got an idea of the personal loans they offer, we can take a closer look at the advantages and disadvantages of each bank. 

By taking a closer look at the loan offers on Swedbank’s and Luminor’s websites, we have found out:

• Luminor’s loan origination fee is 1.5% (min EUR 60), and Swedbank’s fee is 2% of the loan amount (min EUR 15).
• The minimum income for a personal loan in Swedbank is EUR 450, with a co-borrower EUR 1200, while Luminor requires at least EUR 510 official income.
• The total annual interest rate for Luminor is between 12% and 29%, and for Swedbank, it is between 11% and 32%.

Thanks to these nuances, you now have a complete picture of what you must deal with when choosing a personal loan from a particular bank. Make your decision wisely, considering all the possible advantages without forgetting the disadvantages.

A practical example of taking out a personal loan 

Of course, even with these relatively short descriptions of the banks’ offers, choosing the right loan may take time and effort. We want to see clearly where to take out a loan and how to arrange it. So let’s look at the example of Ines, who decided to take out a personal loan of EUR 6,000 for 3 years.

So, as Inese ponders, when she decides to apply for a loan from one of these banks. Since the amount she needs is more than €1000, both banks suit her. If it were less, Luminor would not be able to help her. The loan fee is more expensive in Swedbank (€120 instead of €90 in Luminor), but as a regular customer, she is offered a loan rate of 13%, while in Luminor, it is 19%.

Calculating the total cost of the loan and her previous banking experience, Inese prefers her favorite Swedbank because the monthly payments are lower, and the 3-year loan will be cheaper than at Luminor. Therefore, when choosing, leave your applications in several places and choose from several offers where the conditions are more favorable for you.

Each personal choice 

For urgent financial needs, fast processing of applications, competitive loan terms, and quick disbursement of funds make Luminor the best choice for those seeking a personal loan of €6,000. 

Although each company may offer particular advantages, it is only by studying each of them in detail that you can get an overall picture. To find out more about borrowing wisely, explore options such as consumer credit comparison and find out about debtor loans if you already have financial debts.