When you’re living in the European Union or its close friends, it can seem like the whole continent is your oyster, a spectrum of cultures united to make travel easy. While this is true for many things, financially, countries keep their cards close to their chest.
Don’t worry about this issue if you are based within the EU since a lot of policies are quite similar, but for those on the periphery of this kind of international institution, it can seem a gargantuan task to do things as simple as applying for a loan.
Interest Rates For Beginners
Interest is something that can easily change between individual countries. Single percentage points for a loan that can take years to finish can make a serious dent in your finances. The difference between several points across a 30-year mortgage can make a seemingly insignificant percentage amount seem astronomical by comparison.
It’s worth considering that when you’re applying for a loan, individual countries often have their own residency requirements, even within the EU, so you may not have much choice.
While interest rates point towards the various minor inconsistencies across the continent, a lot of standardization has made loan application and acquisition much easier for people across Europe.
Beginning with Exceptions
Of the EU member states and those states that are on the outer spheres of EU membership, France is one with potentially the longest, most storied history both politically and financially.
It may seem strange to make this statement when nations like Spain, the Netherlands, and others can trace their history back centuries, but it becomes extremely obvious the historical precedents on precedents that make France what it is when looking at financial policy.
In terms of who is allowed to lend money, there are specific rules that restrict this practice solely and specifically to financial institutions. What is a financial institution? This is also strictly defined and entering this sphere as anyone other than a member of an official French banker can make qualifying to give loans extremely difficult.
This is not a policy shared by other countries in the EU, and France is very strict specifically about loans given by individual shareholders to companies.
In other countries, a loan from a shareholder to a business would be legal through specific channels, but as in other cases, exceptions can make a rule rather than the other way around. France is but one of many countries with rules tied to every transaction, and this has made the French people a very lively but regulated economy.
That being less than eloquently said, if you are one of the many individuals looking for a loan in France, it isn’t probable that you will need to worry about big business laws, so looking at the appropriate channels is always advantageous.
The French Example Moving Forward
If you read the laws pertaining to loans in specific countries, they can often seem overbearing. But, for many people, the exact amount of a loan is both the biggest hurdle to overcome and also the thing that is most hidden from them.
Legally, in France, the giver of a said loan is required to be clear about how much they will be charging in interest, the full amount is given, and any other charges that are pertinent to the consumer are made explicitly clear.
But France is a core member of the EU and EU community, so comparing other countries to her may be a bit strange. Let’s move on to another oddity, Norway.
Norway is technically a member of the European Economic Area, the Schengen Agreement, and other specific policies that make them effectively an EU member, though not in bureaucratic practice. If you are looking to søke billige for a loan that is relevant to you, there are rules built specifically for you.
Flexibility Summarized
For Norway specifically, it is strange for foreigners, especially Americans, to see that a lot of Norwegian law concerning loans is ultra-strict. Loan interest, who can take a loan, who can give a loan, and why they can give it is all hyper-regulated to the point of absurdity, especially for people in more big business-inclined countries like the United States.
But, for people living in capitalist safe havens, there is one rule that is easily ignored by people living away from these institutions themselves: flexibility.
For businesses in Norway, though the rules are hyper-strict, you have the option of exceeding certain amounts by what is commonly called the flexibility quota. Banks use this often to make customer-specific choices that they would not otherwise be able to make.
Even if you fall under the umbrella of one of these flexibility rulings, the fact is that every state has its own quirks, and we can all be glad that bankers are willing and able to parse through page after page of regulation. Though, the money every individual gets out of this practice may justify any time spent reading law.
Moving West
The United Kingdom is undergoing a major shift in political winds, yet consumer loan laws are unlikely to be hit hard by this historical era. So, let’s go over some specifics of this no longer EU state that has gone through some hard times recently. While in France and, to a lesser extent, Norway, the regulations regarding loans are different for business-to-business loan practices, in the UK, the rules are relatively lax.
Many subsidiary companies receive loans from their higher-level business partners, and this is normally highly suspect, but for individuals who wish to take out a loan, you can be comforted by the official accreditation of the FCA.
British citizens may find the process for consumer loan assistance to be a bit of a hassle, though nothing compared to some other countries.
Taking out loans is a highly regulated affair by its nature, but for British citizens, you can click this link: https://www.gov.uk/offering-credit-consumers-law to see some specific rules that apply to businesses wishing to break into this competitive sphere. In general, every aspect of the business must be certified to be honest and fair dealing in regard to its transactions.
Conclusions Across a Continent
No one can be hassled to go over every single EU member nation’s laws concerning loans and be an expert on every single one. It’s just not possible for most people, and even banks, to do that in any way that suits the consumer, so if you’re trying to apply for a loan on the European continent, it may just be easiest to walk into a bank and ask. You can call someone as well, and it doesn’t take much Googling to find the number of a bank near you that offers this kind of service.
The fact is that consumer debt, credit cards, and other forms of this practice are all highly profitable industries with a number of regulations designed to make them fair. Because as the term loan sharks is a popular one, you can guess that while the business can be honest, it has an equal possibility of being a trap were nations not to set some boundaries.
Let yourself enter this sphere if you want to move up in the world, buy a house or car, or simply have some measure of financial security against the whims of a dark and dangerous world.
In general, as long as the channels are secure, legitimate, and fast, you will walk away a happy individual. Be safe, don’t click any suspicious links, and inform people of your intentions, and you will succeed! Good luck!