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Navigating Finnish Consumer Loan Regulations: A Guide for Businesses

The marketplace for supplying consumer loans in Finland is vibrant and expanding. According Eulerpool.com, consumer credit as of April 2024 stood at €17.93 billion. This figure represents an increase of €0.902 billion as compared to the amount 12 months earlier, in April 2023, when it stood at €17.028 billion.

As of the 23rd of January 2025, there were 74 loan agencies in Finland, 32 of which have their own websites. It’s not that many, especially when you consider the size of the loan market. There is plenty of room for additional agencies, but any new additions need to be fully aware of the consumer loan regulations for the sake of both the companies themselves, and their clients. If new businesses aren’t aware of the regulations, they could be operating unlawfully, and if borrowers themselves are not aware, they could open themselves up to unfair practices.

The Different Types of Consumer Loans and the Need for Credit Tendering Service Expansion

Any newcomers to the credit tendering market must first consider the type or types of loans in which they will specialise. The range includes:

  • Credit card credit tendering – such as the service provided by Luottokortti
  • Consumer credit tendering – loans for all types of consumer needs accessed through the like of Kulutusluotto.
  • Instant credit offers – when speed is of the essence, like the instant tendering service, for instant loans up to €60k fielded via agencies like Lainaa heti and Laina heti.
  • Flexible credit suggestions – as per the flexible loans given for considerations by Joustoluotto and Luotto.
  • Targeted credit options– such as the student loan credit tendering service offered by companies like Lainaa, or loans for renovations using tenderes such as Remonttilaina.
  • Combination or consolidation credit tendering – similar to the consolidation loan suggestions offered via Yhdistelylaina and Lainojen yhdistäminen.

Key Consumer Credit Regulations, Finland, and Licensing Requirement for Lenders

Consumer loans in Finland come under the umbrella of consumer credit and are governed by the Consumer Protection Act (CPA) or Kuluttajansuojalaki as it is known locally. For businesses intending to offer consumer credit, it’s important to be aware of fully understand the revisions to the CPA that came into force from October 1, 2023.

In effect, the act now limits the interest that loan companies can apply to are that of “the rate applied by the European Central Bank to the most recent main refinancing transaction prior to the first day of each 6-month period, and rounded up to the nearest next half a percentage point. The amendment also specified a cap of 20% above which interest cannot rise. Any company failing to observe these regulations will be penalised.

⁠Licensing Requirements for Lenders

The only financial licenses required for financial service companies are for banks, insurance companies, and investment businesses. Credit tendering companies like Laina, Pikavippi, and Luotto, don’t require them, as they tender loan offers. They are not the original lenders, but their services are invaluable as they provide consumers with a whole range of loan proposals from reliable banks and financial companies. These institutions are licensed in order to facilitate consumers making the best decision to suit their individual needs and circumstances.

Transparency and Consumer Protection Laws

When dealing with consumers considering applying for loans, it’s important to offer them transparency. Because credit tendering service providers do not have financial licenses, transparency gives the consumer the feeling of a safety net in place in terms of being able to find out all there is to know about the company they’re dealing with.

The consumer protection laws of Finland have been designed to provide consumer with specific rights which include:

  • The right to cancel and return
  • The right to fair terms and conditions
  • The right to reimbursement
  • The right to safe products and services
  • To offer protection against unfair terms and practices

All of the credit tendering service providers we refer to in this article, including the likes of Halvin Laina, Nopea Laina, and Vippi promote these rights, and it’s essential that any new companies that join their ranks should do so, too.

⁠Advertising and Marketing Restrictions in the Loan Sector

Advertising and marketing are essential components of any company’s strategy. If you are a budding entrepreneur hoping to enter the loan tendering business sector in Finland, you’ll need to comply with the Finnish acts and practices regarding advertising. The restrictions and obligations relate to the advertising of particular products, the special groups, the method of advertising, the advertisement channels used, and copyright law.

This not only applies to consumer loans and tendering services for individuals, but to business or corporate loans too, like those offered by Laina Heti Tilille, who provide competitive loan offers from various lenders up to €10 million.

If you would like more information on marketing planning, the guideline published on the KKV website will be of interest.

Remaining Compliant – Best Practice for Potential Tendering Service Providers

Obtaining the right credentials for opening any business in Finland has its challenges. While these challenges are not particularly onerous, it is important to ensure that you remain compliant on an ongoing basis, as the compliance landscape is a work in progress.

Whether you will be tendering credit card availability, or like Autolaina or you are targeting the tendering of loans for purchasing automobiles, being up to date in terms of compliance is key.

The regulatory compliance landscape is all about complying in accordance with transparency, protecting any stakeholders involved in the business, as well as nurturing the integrity of the Finnish business environment.

How Regulations Could Evolve in the Future

In terms of the service of tendering consumer loans, transparency on both sides of the equation (lender and borrower) is key. All of the tendering service companies mentioned within this article work very hard to offer full transparency. But even so, some consumers still struggle when it comes to repaying credit debt.

To try and pre-empt the exacerbation of this problem, Finland is progressing with the implementation of the Credit Servicers and Credit Purchasers Directive (2021/2167/EU), locally known as the NPL Directive. It has been active in the EU since 2021. The initial ‘NPL’ stand for ‘Non-Productive Loan’ and refer to delinquent loan repayments. However, this is not something that will directly affect credit tenderers, but it could impact those seeking consolidation loans.

On a broader scale the global regulatory trends we can expect to see include:

  • New digital compliance rules.
  • Stricter credit evaluations.
  • Enhanced consumer protection laws.
  • Increased transparency.

Lenders themselves must be ready to:

  • Keep pace with changes and innovations.
  • Employ updated technology.
  • Constantly review their policies.
  • Train and retrain their staff.

Cryptocurrency Potential

Cryptocurrency is reshaping the global lending landscape. Digital currencies offer new opportunities for both borrowers and lenders. They can facilitate quicker transactions, have lower fees, and foster increased accessibility.

What Other Changes Are Expected in 2025?

The Finnish consumer loan landscape continues to evolve as new technologies become available. The sort of things we can expect to see more of in 2025, include:

  • Advancements in technologies including AI, and machine learning, blockchain (crypto), and mobile device apps.
  • Increase in personalised lending in terms of customised proposals, flexible terms, and dynamic interest rates.
  • Green, sustainable loan products – including business loans
  • Artificial Intelligence – being used for productive analytics, sources of data, and real time analytics.

Making Ready for The Future

With the loan landscape continuously evolving, financial institutions and agencies must also be ready to adapt and evolve. Emerging trends will determine how loans are offered. Being aware of and coming to terms with any changes is vital for success.