Not surprisingly, more and more people in Sweden are opting for SMS lån But is there anything special about the SMS loans that are enticing people? In this content, we will provide you with information on why the industry is highly growing plus the pros and cons of these loans.
Why the payday loans industry is highly growing
According to some experts, the recession was the primary cause of SMS lending boom. After times became tough and getting money became hard, unsecured loans presented a more convenient opportunity to individuals. With the loans, getting money to help their family survive became easier, and lots of people also realized that the loans were more useful than they thought.
Even after things had evened out and recession was over, the SMS lending growth continued. Some people may argue that this resulted from the cost of living becoming higher and higher. Also, today everything costs more than it used to do some years ago. As a result, most families hardly keep up with rent and bills payments in most areas within Sweden. Therefore, for most of them, the easier way is to apply for the payday loans and to get instant money to pay for whatever they need. And because the cost of living is always increasing, expectedly, the payday loans market growth will continue.
What are the pros and cons of SMS loans (lån) in Sweden?
– Easier loan application process
According to most people, the loans are easier to apply for and moreover, they are a better option for individuals in need of instant cash. The application process will take around 10 minutes. This is something most people can do during their lunch break or while in their workplaces. And mostly, the payday lenders will deposit the money into the customers’ bank account within 24 hours. Most borrowers receive the money after a few hours – after approval.
– Faster loan approval
The loans approval is usually very fast. In other words, after applying for the loan, you won’t need to wait nervously. What’s more, you won’t need any collateral to secure the payday loan The lenders will approve your loan depending on your affordability and credit assessments. People with bad credit scores rarely get these loans. The approval speed highly depends on the lender’s applications processing but typically, people do not wait for long.
– The payday loan won’t tie you to long term contracts
In nature, payday loans are short term – you are getting instant cash on the next paycheck. Therefore, the loans do not exceed 30 days. This feature attracts most people particularly those who hate the idea of committing to lengthy agreements with lenders – everything ends in less than a month.
– SMS loans can be a better alternative to the typical personal loans
To apply for a standard personal loan, you will have to go to your bank in person. In addition to that, the bankers will bombard you with questions relating to your financial situation and life – they need to know exactly why you require the loan and how you will spend the money. This is intruding and may leave most individuals feeling frustrated. However, with payday loans, you only need to prove that you have a job, and the loan is affordable.
– Higher interest loans
Payday loans have their problems. One of these problems is the higher interest rates. However, the interest rates will be a problem if you aren’t smart with the loan.
– Higher charges and penalties
In addition to the higher interest rates, one should expect higher penalties particularly if you won’t repay the loan on time. The charges may be substantial and as a result, make your financial situation difficult to control. If you happen to miss your payment date, the small loan will cost a fortune.
– They aren’t a long term solution
The payday loans will help you out of the trickiest situation, but relying on them each and every month isn’t the best idea. If your financial situation is terrible, don’t apply for an “SMS-lån”.