While bank loans to consumers are the primary mode of receiving lending, there are also online lenders. Apparently, there are some differences. Primarily, even though a bank is also an investment firm, it is also a transaction system. This means it is prone to National Standards and averages in interest rates. With an Internet banking system, there is much more room for little people to get small consumer loans without it being secured and without collateral.
In Europe, this is what is called a flexible credit union, such as FlexiCredit and other similar credit unions. Consumer friendliness for the smaller business people and average folk who want to keep money in their Cities, States, and communities has taken the turn it should and many Finnish citizens who thought they could not even get small loans did, in fact get the loans after being turned down by banks.
Between one and eight up sometimes to ten thousand Euros have been leant at a time. Naturally, some people do get turned down, as this is inevitable if someone clearly cannot pay the loan back. These small loans have resulted in burgeoning smaller businesses all over Finland, helping the Country’s economy to get a stronger boost. The credit unions have benefitted as well and have been able to expand their efforts to create opportunities for those who would otherwise not have them.
This liberal approach allows for scaling of the loan pay-back period to make it possible for the consumer borrower to pay it back. Rather than literally banking on people to fail, this approach encourages success with what can at least be seed money for larger investments to bring income in the future. Poising Finland and the Finnish for success also poises Europe in general for greater success and this is exactly the type of lending it takes to evolve an economy.