It is most likely that you turn to your own bank when you take out a bank loan / private loan. This is also not entirely wrong to do since the big banks often have fairly good interest rates on their loans and the terms are otherwise ok.

However, it is not necessarily the case that big banks are always the best option, because there are things that they do worse. There are also conditions and the like that can make big banks not an option. In some cases, there may clearly be reasons to consider another smaller lender.

Here I will make a small list of different reasons / occasions when it may be better to choose a less niche lender than the usual big banks. These lenders have their own drawbacks but their benefits may also outweigh these drawbacks in some situations.

Some reasons to choose a niche smaller lenders instead of the usual bank

Some reasons to choose a niche smaller lenders instead of the usual bank

Here are reasons to choose another lender instead of the major banks that have been dominant for so long. It is often about greater flexibility and speed, but also about better conditions and less stringent rules. Read through the tips and see if anything suits you.

Payment notes

A classic reason to turn to an alternative lender is that you have payment notes that prevent you from being approved. Most major banks say no if you have an active payment note, but there are some other lenders who do not refuse a loan automatically.

You can get a slightly higher interest rate, but the advantage is that you can at least get the chance to borrow instead of it being a no-direct. Of course, you have to make sure that the interest rate is not unreasonable, but if you really need a loan and the notes are in the way, you have a chance here.

Borrow lower amounts

At the major banks, there is usually a minimum limit for private loans, for example USD 20,000 or USD 30,000. You can borrow quite large amounts if needed, but it is a little more limited if you only need a smaller amount. Now I do not think of a loan of USD 3000 directly as this would be counted as a micro loan or SMS loan but more USD 10,000 or up to USD 20,000.

The smallest amounts can, as I said, only be taken by lenders who use SMS loans and these are a little more expensive and often have a maturity of only 30 – 90 days. If you want to take a regular private loan and just want to borrow somewhere between USD 10,000 and 30,000, you can instead turn to one of many niche lenders who have these small private loans.

The interest rate can also be a bit higher here than if you borrow from your regular bank, but just like in all other situations, the benefits must be weighed against the disadvantages and if it is important that you get a loan then you can get a higher interest rate. However, you can then think about if it is better to borrow a little more than you need from a major bank and then get a longer interest rate.

Faster handling of your application


Newer lenders may have often invested in faster processing of your application and payment of the money. Offering a fast and agile service is a way to niche against the big banks, which are often a bit more square and slow.

Instead of being sent home debentures that you should sign and send back, you can for example apply directly online and identify yourself / sign with e-leg or Bank ID. This makes it easier to get your money out. If you need money in the account directly, a smaller lender can clearly be better.

More flexible payback times and the like

Some lenders who previously only dealt with pure fast loans / SMS loans have today redone their services so that they are a combination of small loans and slightly larger loans and these lenders may also have more flexible maturities than the usual banks.

Here you can, for example, borrow USD 10-20,000 with a maturity of, for example, 1 – 3 years, but sometimes you can also choose 180 days or something similar. You have a great deal of flexibility especially if you only need to borrow USD 10,000, since this amount is also the maximum limit for many SMS loans. Then you have the opportunity, for example, to choose 90 days maturity in many cases.

An alternative if the bank says no

The smaller and more niche lenders can often have slightly less tough requirements than the big banks, which are more afraid of themselves. There are a number of lenders who have stricter requirements, for example that they require a lower annual income, are not as harsh with being a permanent employee or that you have payment notes, etc.

Of course, you who have been denied by the bank must consider why you were denied and decide if it is really a good alternative to take out a loan. However, if you find that it is ok to borrow despite this, an alternative lender may offer you the opportunity you need to get a loan.

Account credit instead of loan?

Account credit instead of loan?

Something that is starting to come more and more than so-called account credits. This works in much the same way as with a credit card only if you do not have a special card linked to the account. Instead of borrowing USD 20,000 you will be granted a credit of the same amount.

You can then choose to use only part of the money and also then only have to pay interest for the part of the credit that is used and during the time you spend the money. When you are done, you will pay back and avoid additional costs.

This can be an interesting alternative to taking out a regular loan. The big banks have not yet adopted this idea, so you can turn to a little smaller lender. It is conceivable that the interest rate on the credit you choose to use is quite high, but the advantage is that you have the freedom to use the amount you need and only in the time you need plus you do not need to apply for a loan every time you need money – for once the credit has been approved, it is there if needed.

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