Leading loan broker
Freedom Finance is a Swedish loan broker with operations in Sweden, Germany and Finland. The company has been included in a group of brands since 2015 under the name Zmarta Group, which is owned by the German Bauer Media Group. We have taken a look at what products the company offers, how it stands against other loan operators and whether it really mediates the market’s cheapest loan
What products does Freedom Finance offer?
Freedom Finance markets itself as “one of Sweden’s leading loan intermediaries”. The company compares (and mediates) private loans and car loans from several different banks and credit companies. You can also get help collecting your loans for a single new private loan. You can apply up to SEK 500,000 without security via Freedom Finance.
What are the costs for Freedom Finance loans?
Of course, the interest rate varies for the loans offered through Freedom Finance, but it usually ends up somewhere between 6 and 25%.
You choose to borrow the lowest possible loan amount of SEK 5000 with a repayment period of 1 year. The average cost of the loan will be SEK 444 per month. This means an interest rate of 6.56%. The total cost of the loan is SEK 5328.
Let’s see what happens if you instead choose to borrow SEK 250,000 with a repayment period of 10 years: the average cost of the loan will be SEK 2567 a month. This means an interest rate of 23.2%. The total cost of the loan will be SEK 308040.
What fees apply when you borrow money through Freedom Finance?
You will not find out what loan terms (or fees) will be added to your loan until you actually submit a loan application to Freedom Finance. By fees is meant eg. processing fees, transfer fees and other additional fees set by the lender.
How does Freedom Finance stand against other loans?
Freedom Finance works with 24 affiliated banks and credit institutions in Sweden. Of these, at least five apply individual interest rates. At least one lender requires you to take out insurance to get the loan granted. The insurance covers a monthly premium of 0.45% of your current loan debt. At least two offer credit at competitive interest rates. However, at least five offer unsecured loans at a rate well above the market average. 6 also offers credit cards at varying annual interest rates. The loan offers are many and the conditions differ considerably, which partly speaks well about Freedom Finance as a loan broker. On the other hand, most of their partners are in the worse layer of lenders offering loans for staggering high interest rates and expensive dispensing fees.
What does the law say ?
According to the Consumer Credit Act, all costs for a loan must be clearly stated in the loan terms. As Freedom Finance is not a lender, it is also legal responsibility of the company not to inform the loan in advance of the loan terms for your loan.
What do customers say?
Freedom Finance has a broad partner base of 24 affiliated banks and creditors. Some of these get really bad grades at various consumer sites. Complaints about poor customer service, unreasonable interest rate increases and hidden fees appear in different directions. It should also be said that at least half of their partners are well-established actors with a relatively good reputation among customers and borrowers.
Is Freedom Finance a Good Credit Choice?
Freedom Finance is primarily a search service for bank loans. The company’s goal is “to convey loans with the best possible conditions for each customer and loan situation.” Therefore, one should instead ask the question: are their partners a good credit choice? Most offer unsecured loans to high interest rates. At least three of the banks that cooperate with Freedom Finance have been forced to pay millions in fines. You do not know what interest rate your loan ends on until you have submitted a loan application. In other words, there are some warning signs to consider. We do not, however, want to advise against applying for a loan through Freedom Finance. Some of their partners are well-established company names. Others, on the other hand, are lenders who end up in windy weather on more than one occasion. Be aware of the loan offers that Freedom Finance sends to you. Always choose a well-established player in front of one with a turbid reputation. Always review the terms of the loan. Read through the fine print and focus not only on the interest rate but also on the fees. It is here that cheap loans can quickly become stingingly expensive.