Elín

Elån is a term used in Nordic contexts to denote a loan, a sum of money borrowed from a lender with the obligation to repay the principal together with interest over an agreed period. Loans are issued by banks, credit unions, online lenders, and other financial institutions.

Common types include unsecured personal loans (no collateral), secured loans (backed by collateral such as property or a car), mortgages for real estate, student loans, and revolving credit lines such as credit cards or lines of credit. Some lenders offer special-purpose loans with fixed terms.

Key terms include interest rate (fixed or variable), annual percentage rate (APR) that includes fees, loan amount, term length, and repayment schedule. Loans may be amortizing (regular payments of principal and interest) or interest-only for a period.

Costs and fees can include application fees, origination fees, appraisal costs, late payment penalties, and prepayment penalties. Total cost depends on rate and term.

The lending process typically involves an application, credit check, income and affordability assessment, and verification of collateral if secured. Lenders may require collateral or a co-signer; approval criteria vary by lender and jurisdiction.

Risks include debt burden if incomes fall, higher interest rates for some borrowers, and impact on credit scores. Regulatory frameworks govern lending practices in many countries, including consumer protections, disclosure requirements, and caps on certain fees.