One thing that many people do not think about when taking a micro loan is that they can actually make a deduction on the interest they pay. In fact, these are the same rules that apply to you regardless of which loan you take, which means that you can make the same deduction for the interest rate on micro-loans as you do for a mortgage.
Not thinking about this with regard to micro-loans is not particularly strange since the lenders did not initially market what interest rates they took out for the micro-loans. All you talked about all the time was what fee you had to pay in total. But since Swedish law is not allowed to use fees when it comes to loans other than to cover your own costs and instead have to charge an interest for the profit you want to make, there were changes. Nowadays after pressure, the lenders have changed and instead they charge interest rates which they have come up with is better.
They can then say that customers are allowed to deduct the interest rate. Because that’s how you get to deduct 30% of interest costs. This is done on the declaration and you will then receive money back from the state. It is important to remember that it is only for interest costs that you are allowed to deduct. You will pay full subscription fees, setup fees, etc.
Remember the deductions when comparing micro loans
A good tip for those who are thinking about taking a micro loan is to check how much the different lenders charge in interest for their micro loans. If two lenders have the same total price but one of them charges USD 100 more in interest and the other charges USD 100 more in setup fees, the one with higher interest will be cheaper in the long run, since you can offset 30% of the cost.
Then keep in mind that the money you will get back will be far behind. The lender will claim the full amount from you when the term expires.