This means that the competition for you as a customer has sealed the market, which in turn has led to companies being forced to push their prices and that you can get your loan at the best price.
At times when life does not allow you to plan your loans and your finances well in advance, you can quickly get money from the bank for your financial needs with the help of such loans. Unlike traditional bank loans, you can also get rid of all the repayments and interest expenses by repaying the loan within one month of the loan. Thus, quick loans can be a great way to solve sudden situations that arise without them following you for a long time to come.
What is fast payday loan?
This type of loan is known by many different names, it can be sms loans, internet loans short term loans or micro loans. But common to all these different terms is that it stands for loan of money for a shorter period of time. Most often it is a loan of a small amount and it is not uncommon for the repayment period to be shorter than 30 days.
Fast payday loans include all loans that come with an effective interest rate of over 30 percent. The nominal interest rate for these loans must not exceed 40 per cent of the current reference rate and the total costs including interest and fees may not exceed 100 per cent of the borrowed amount.
One of the most common misconceptions in fast payday loans is that the entire loan is made through the mobile phone. This is largely due to the fact that fast payday loans have long been synonymous with SMS loans and that at the beginning of the fast payday loans great marketing was done where it was described that you could now borrow money via mobile. But the fact is that everything from the application to credit information and control is done via the internet and via telephone contact.
The history of the fast payday loan
The concept of fast payday loans is a relatively new phenomenon in Sweden and it is usually said that the trend of fast payday loans really broke through in 2006. At about the same time, these loans also became more common in our neighboring countries in the Nordic countries. At this time, it was already a fairly well-known form of loans in North America and in countries such as Australia and New Zealand, for example. Previously, banks had been able to offer shorter loans than before, but in most cases they were still loans that extended over one or more years. But in the early 00s, new attention-grabbing companies saw the opportunity to use the Internet and, not least, the widespread use of mobile phones in more and more parts of the world as an opportunity to find new customers by offering fast payday loans.
Today, fast payday loans have gone from being a new phenomenon to being a well-known concept and something that millions of people around the world choose to use when they need a fast payday loan with a short repayment period.
The difference between quick loans and SMS loans
The terms fast payday loans and sms loans are often used in the same sense and of course have many similarities with each other, but they also differ in a lot of points. For example, it is not uncommon for these types of loans to have a longer maturity than is usually the case for SMS loans. This means that a quick loan also comes with a longer installment period.
Another great advantage of fast payday loans is that they have a much clearer installment plan than their competitors. In addition, the installment plan is much clearer right from the start, which can be something to take into account for those with a somewhat messy economy as it means both better conditions for the borrower and the customer has a greater chance of avoiding extension times on the loan. Something that is very likely to lead to additional fees and make the loan extra expensive.