Lend to the sky-high interest rates: “We help vulnerable” – Swedish Dagbladet

neither margin Bank or BlueStep see any problems with lending to people with poor finances. Photo: Tomas Oneborg

– The smaller banks and loan companies affected by the increased regulatory environment that is the same for us as for the larger banks, says Anders Karlström, Director of Communications at the margin Bank.

He believes that they may add an increasing proportion of its resources to rule the area, which has a dampening effect on growth. But he believes that the bank’s small size means that they can be faster in product and business development.

– Our assessment is that customer loyalty to their bank will decrease in the future, which will mainly be positive for the smaller players.

But the question how to look at the risks of giving loans to people with poor credit and those who refused by banks.

Anders Karlström believes that credit history should not lead to automatically shut out of bond markets, and underlines that it had low loan losses.

– we have developed our credit process for many years and feel confident that the assessments we do are correct so that we can help this often vulnerable group.

nor BlueStep see any problems to lend to people with poor finances, which then generally receive significantly higher interest rate.

– We spend a lot of time with our customers and potential customers to detail put us into and understand their financial situation, and above all, their ability to cope with a mortgage in the future, says Peter Gertman, fine head of BlueStep.

But private loans (mainly consumer loans) are the fastest growing in the company, with 30 per cent last year, and there seems according to the website not be a rigorous process to get loans.

There is one clear that you do not care about the customer’s financial history or “what kind of income you have.” Instead that the customer can have up to ten credit history and still granted new loans. BlueStep have enjoyed rapid progress, but Peter Gertman look confidently to the future.

– There has been a favorable economic development, and we recognize that it can not last indefinitely and is humbling to future challenges . Our view is that BlueStep fills an increasingly important role in the market and that we are well positioned and will continue to be successful.

Declan Mac Guinness Book , president of TF Bank, tracks continued growth of the company. One of the reasons is that the traditional banks do not focus on that part of the market.

– Demand continues to grow in all five countries where we are active in, and expected to remain so.

Sweden, which is 20 percent of the bank’s activities, the competition is tough, says Mac Guinness.

is it reasonable to take an effective rate of 28 percent on average of your Swedish customers.

– the interest rate reflects the risk involved in lending. On smaller loans, customers are less sensitive to a high effective rate because the vast majority pays back within a shorter time than agreed. It can also be seen as an alternative to credit card loans where the APR often lands closer to 20 percent.

Mail reporters on: carolina.neurath@svd.se and patricia.hedelius@svd.se