The purpose of social lending is to provide financial support to individuals with low income who permanently reside in Helsinki and face challenges in obtaining loans due to factors such as lack of collateral or a poor credit rating.
It's important to note that receiving a social loan will not impact your eligibility for social assistance. The primary goal of social lending is to prevent economic marginalisation, over-indebtedness, and promote independent living in your daily life.
A social loan can be granted for various needs that contribute to your own or your family's independent well-being. Some reasonable grounds for a social loan include:
-Financial balancing -Small home and health care -related purchases (such as a washing machine, glasses or dentures) -Support for employment-related expenses
If you are considering applying for a social loan, we encourage you to contact us either by phone or email. During our conversation, we can assess your eligibility and provide further guidance regarding the social loan application process.
Call us
Appointment booking and counselling
More information on applying for and social kredit
The social loan offers a flexible amount ranging from €500–€15,000. The interest rate applied to the loan is based on the reference rate set by the Bank of Finland, which is reviewed annually.
The repayment period for the social loan varies depending on the loan amount, ensuring suitability for individual needs. The maximum repayment period allowed is seven years, providing ample time for borrowers to comfortably repay the loan.
Social lending is specifically designed to assist low-income residents of Helsinki who lack access to other loan options on reasonable terms. To be eligible for a social loan, it is necessary to provide a justifiable reason for the loan and demonstrate the ability to repay it.
When evaluating loan applications, we conduct a thorough assessment of your repayment capacity. This assessment takes into consideration various factors, including your income and expenses. We consider essential costs such as housing, transportation, daycare fees, child support and health care expenses. Additionally, other necessary living expenses are considered, based on the protected portion defined in private individual's debt settlement guidelines.
By carefully evaluating your financial situation and considering all relevant factors, we aim to ensure that the social loan is manageable for you and does not lead to financial strain. Our goal is to provide loans that are tailored to your needs and repayment capabilities.
More information on applying for and granting social credit
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Prerequisites for obtaining a loan
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You must provide a clear justification for how the loan will enhance your quality of life and improve your financial situation.
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You have the means to repay the loan.
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Your previous history of accumulating debt has ceased.
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Your current situation has stabilised.
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You have explored other loan options and do not have access to loans on reasonable terms.
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There will be no outstanding debts apart from the social loan.
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You can demonstrate your ability to manage the loan, which may include showing evidence of advance savings.
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You submit all the required supporting documents, including information on income, expenses and existing debts, when applying for the loan.
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Possible obstacles to obtaining a loan
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The loan amount exceeds €15,000.
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Your available income is insufficient to meet the monthly instalment requirements.
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You are eligible for a loan with reasonable terms from the regular market.
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Your income or assets do not classify you as a person with low income.
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You possess assets that can be liquidated or used as collateral.
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You do not have a permanent residence.
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You are currently grappling with acute gambling or substance addiction issues.
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You are currently under a debt settlement or have an active social loan.
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Social loans are not granted for financing business operations.
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Call or email us
If you are considering applying for a social loan, call Financial Counselling or send an email to sosiaalinen.luototus@hel.fi(Link opens default mail program). We can determine together with you whether you are eligible for a loan.
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Submit an application
You have two options to apply for a social loan: through Maisa or by completing a paper form. If you require assistance, Financial Counselling is available to help you with both the electronic and paper application processes, ensuring that you have the support you need to complete the application accurately and efficiently.
See the contact information for Financial Counselling
We can send you the application form or you can print it out yourself.
Print out and fill in the social loan application (in Finnish)
Send the completed form to Malmi office building, Ala-Malmintori 2, 4, FI-00700 Helsinki.
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Meet us for further discussions
Once we have received your application, we will promptly reach out to you to schedule an appointment for further discussions. During the processing of your application, we will carefully assess your situation, financial status, expenditure patterns and ability to repay the loan. If deemed necessary, we may recommend financial monitoring, the duration of which will be mutually agreed upon to ensure comprehensive support and guidance throughout the loan process.
You can also find this page at hel.fi/social-loans.
