Everybody comes up with situations where some extra money is needed. The car was broken and needs urgent repair? Was the water pipe burst or the fridge broken? For years, have you dreamed of a vacation in the Bahamas but have never reached it? Regardless of need, a quick loan is a good solution to help cover unexpected expenses or make dreams come true.
Lending should not be ashamed. Rather, it could be taken as a good tool if it is financially tight. It also helps to distribute higher spending over a longer period of time, so spending does not seem to be such a big expense. Distributing the loan amount over a longer loan period allows you to make your thoughts without breaking the budget. Before you take out a loan, you should familiarize yourself with the nature of the different types of loans so that you can make an informed and reasonable financial decision.
What is Fast Loan?
A fast loan, also known as a small loan or SMS loan, is a type of loan that is mainly characterized by the speed of receipt of the loan amount. Loans can amount to between fifty euros and several thousand euros in terms of amount, so it is a completely worthwhile type of loan, even if you need a slightly steeper amount to cover unexpected expenses such as home repairs or vehicle purchases.
Fast loans are best suited for those who need extra money very quickly and want a loan amount the same day. If you apply for a loan within a lender’s business day, you are most likely to receive your loan application within half an hour or a few hours, sometimes even faster. After receiving a positive loan decision, the loan amount will be credited to your current account within 15 minutes! This means that the entire process of submitting a loan application to the loan amount can only take an hour.
The loan loan is also characterized by the peculiarity of the loan amount. Although the loan amount can reach a sentence of five thousand euros, the amounts of the quick loans are generally smaller and the loan periods are shorter. In addition, the interest rate on the loan is slightly higher, as it is usually an unsecured loan. This means that high-risk loans are more risky for the lender, so the interest rate is justified. The minimum loan amount is 50 euros and the shortest loan period is 5 days. This means that a quick loan can help if you need some extra support before the payday.
Types of quick loans
Fast loans are broadly divided into two: secured and unsecured loans. Loans with collateral are loans that are secured by the applicant as collateral for the loan amount – for example, a means of transport or real estate. Unsecured fast loans are the most typical and they do not require any kind of collateral – the loan amount is issued only on the basis of the checking of the solvency of the borrower.
Loans can be broken down as follows:
- SMS Loans – SMS loans are one of the most well-known quick loans. They are mainly characterized by the possibility of applying for a loan amount by mobile message. SMS loans are now very specifically defined by law and therefore there is no need to fear that an SMS loan is the exploitation of the data of the borrower. To obtain an SMS loan, you will first need a valid loan agreement or credit agreement with the lender. Getting a loan by SMS is an additional bonus for the lender, allowing the person already in the customer to apply for the loan more easily. Namely, the person has already undergone the identification process by this moment and is accepted by the lender as a solvent borrower. SMS loans are convenient and flexible and allow you to borrow quickly, even if you are not near a computer. The SMS function is also used by several credit account providers – by sending an SMS it is possible to easily apply the credit account opened by the lender without making a separate application.
- Common unsecured quick loans – unsecured fast loans are the most common. There are also such loan offers on the Estonian market the most. Unsecured fast loans are flexible, quick and easy, and you only need to apply for a loan to get a loan. If you are creditworthy, you will get a loan amount and a payment schedule with a suitable loan period.
- Consumer Loans – Small Loans – Small Loans, or Consumer Loans, are usually loans with a larger amount, where the interest rate is lower and the loan repayment period is quite long. A small loan can often also be a secured loan. In this case, the interest rate on the loan is even more favorable.
- Car Loans – Car Loans are the Safest Loans, because it is a security loan. To obtain a car loan, you must have a means of transport that you can provide as collateral for the loan. The loan amount depends on the market value of the car and generally reaches 90% of the market value of the vehicle. Autolaen is a good option if you want to buy a new car, as the new car can also be a loan guarantee. Autolaen is a good opportunity for those who want to buy a car because the interest rate on the loan is much lower than the standard loan. The purpose of a car loan is not limited. So you can take a loan with a car guarantee regardless of the type of expense – go for a trip, nothing hinders!
How to borrow money with a quick loan?
Applying for a quick loan is very easy and takes no longer than 15 minutes. First, you need to select a suitable loan provider that suits your loan offer, interest rate, and loan terms. If you have found a pleasant loan provider, you only need to complete a simple loan application.
When making a loan application, you will need to provide detailed information about your income and expenses, and you will also need to provide an account statement for your last six months. Based on this information, the lender makes a decision and analyzes whether the borrower is sufficiently solvent to deal with the loan. It is extremely important to provide honest and accurate information to avoid debts. In addition to the statement of the account, the lender also checks the credit history of the applicant from Credit Credit Information and makes sure that the applicant does not have any valid payment remarks. In the event of a payment disruption, it is not possible to obtain a loan from most lenders.
After submitting a loan application, a representative of the loan company who asks for further questions or informs about the loan decision will contact the applicant. In case of a positive loan decision, a personal identification process must be carried out. This is the procedure prescribed by the Money Laundering Prevention Act, which is necessary to prove your identity. For this, you must contact the nearest Omniva post office or the lender’s office where you need to submit your identity document. This is a confirmation that the borrower is the same person. Although it sounds complicated, the entire operation takes only 5 minutes, so the only problem is going to the identification point.
Once the identification process is completed, you will be credited with a loan amount transfer. The loan amount can be received on the same day if both you and the lender have a current account with the same bank. This means that if the lender reviews the applications on Sunday and you have a current account with the same bank, you can get a loan even on Sunday! However, if the bank accounts are in different banks, the loan amount may take a little longer.
In any case, a fast loan is the quickest way to get a loan to cover urgent expenses. Since the loan amount can be both 50 euros and 5,000 euros, the loan amount application is not limited. If the payday is sharpened, but your fingers are in your hands, a quick loan can be a good helper to live well in the payday. If you have to buy home appliances or do not want to miss the best weekend discount at your favorite shop, little money is a good tool. Borrowing is an important financial obligation that should not be taken lightly, so be sure to consider the different ways to find the best solution for you. If you are confident that you are solvent and need some extra money, a quick loan is the best way to deal with money.