Klarna Docs - Regulated Financing

Regulated Financing

Klarna’s financing products are regulated credit agreements. Financing falls into two categories, fixed sum credit and revolving credit (also known as running account credit).

Fixed sum credit is a regulated credit agreement with a fixed duration (term). Klarna offers fixed sum credit agreements from 6 months to 4 years. Fixed sum credit can be offered on interest-free or interest- bearing amounts and may incur a default fee if a repayment is missed

Revolving credit is a regulated credit agreement with no fixed duration. This allows consumers to use their account on a rolling basis up to an agreed limit. Revolving credit can be offered with different interest
rates (possibly at 0%) and may include a promotional period for a set period of time. Once this time has passed, if the consumer has not made sufficient repayments over the set period of time the promotion period is offered, any promotional interest rate will revert to Klarna’s standard rate of interest Klarna Financing is a fully-regulated credit product.