Are there differences between SMS loans, micro-loans and loan-advances?
Micro loans fast loans, SMS loans and loan-advances are generally the same and these refers to the same small loan. This has a fast application process, fast approval, a fast release of money and fast payment option too. That is the reason why it is called fast loan in the first place. With the nature being a minimal loan and the quick method of repayment makes banks and credit companies, reduce all unnecessary requirements and demands from the borrowers. So, a borrower does not have to present any guarantee or collateral for the loan. Learn more from HittaSMSLån.
How much is the loanable amount and the terms of payment?
As the name suggests, micro loan allows only a minimal loanable amount usually within the 3,000 Kr limit. This loan can be applied through text and paid in a shorter term like 30-90 days. The good thing about this loan is that even during evenings and weekends, company can release the loans to the borrower. So in cases of emergencies, this is where many customers ran to get their needed funds.
What is the normal interest rate for this kind of loan?
The interest rate vary between credit companies, there are some which are slightly higher than others. But in comparison to long term bank loans, this is higher. The reason behind the higher interest rate is the fact that this loan does not require any guarantee or collateral. Another reason for a higher interest is the loan maybe bigger than the normal amount of loans given. With that the credit company is taking a bigger risk without any security of repayment.
At the present time, the interest of this fast, SMS loans are in the 5.10%. But there are credit companies that may give lower rates than the average level mentioned. So, it is best to search for comparative tables in the internet. There you will be able to rank the credit companies that give lower interest rates.