The concept of same-day consumer loans dates back centuries. However, the influences of a more organized banking setup and technological advancements have changed the face of securing same-day consumer loans in this day and age.
Be that as it may, people considering securing this kind of credit line need to be aware of certain things. For one, this ensures that prospective borrowers do not become prey to loan sharks. You can read this article for more information about this.
To this end, this article sheds light on some of the things to know about this type of consumer loan. So, ensure that you continue reading to be well-informed.
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How Soon Can You Secure Funds with Same-Day Consumer Loans?
It takes only a few minutes for banks and creditors to access the creditworthiness and other eligibility ranking of loan applicants. Furthermore, processing for those who are considered eligible enough does not take too long.
However, funds may not be received until after 24 – 72 hours. By the way, this timeframe can even be extended until certain conditions. For example, this could be the case when applicants apply close to weekends.
By and large, there are fiscal policies that affect the timing of which funds can be dispensed to borrowers. This is a major reason why getting funds can take between 24 – 72 hours.
Besides this, banks/creditors (as the case may be) also need to get consent from applicants. For this reason, the response time of applicants (if they eventually respond) also determines how soon funds can be received.
Furthermore, the amount that an applicant intends to borrow may also play a role in how fast it can be secured or otherwise. Usually, the demands for securing low amounts are not so intense. There are even reports suggesting that the assessment of an applicant’s creditworthiness may not be in-depth. For this reason, the pace at which the application is processed and funds disbursed can be very fast.
However, a lot is usually involved when applicants request huge sums. For one, a lot of work goes into evaluating the creditworthiness of the applicant. This in itself takes a bit of time. So, this is how the amount to be borrowed also plays a role in how fast funds can be secured.
Creditors that offer Same-Day Loans in Norway
People in need of same-day loans in Norway have plenty of creditors to choose from. This is especially true for those who have a good credit rating, as this significantly increases their chances of securing these loans. It also increases the chances of securing these loans at very borrower-friendly costs.
For the record, there are around 30 banks that offer this financial service in Norway (as of the time of writing this article). However, you need to understand that some of them have internal policies that enable them to solely or better cater to the needs of a certain clientele.
For example, some of them are solely known to offer same-day consumer loans to applicants who want micro-loans. These are amounts not exceeding 20 thousand or 30 thousand Norwegian kroner. By and large, not too many creditors in the market belong to this category.
On the contrary, some creditors offer this credit line to applicants wanting higher amounts. It has been discovered that around 15 banks belong to this category.
This information should form a basis when searching for suitable creditors. On the whole, some of the creditors in Norway that offer same-day loans to eligible applicants include:
- Sambla
- AXO Finans
- Uno Finans
- Zensum
- Klikklan
- DigiFinans
- Nano Finance
These are just a few of the possible options, as there are several others. You should understand the clientele scope of any considered creditor/creditors.
Repayment Period for Same-Day Consumer Loans
Nowadays, these credit lines come with a lot of flexibility. This is evident in their repayment period. For the most part, applicants can choose a repayment plan. As a result, they are in a position to make this crucial decision based on their financial commitments and peculiarities.
However, there are situations where the choices of applicants in this regard can be quite restricted. One such is when the amount to be borrowed is pretty low. More often than not, repayment periods for such loans are short-term. This is so that the lent principal and accrued interest will not be tied up for a long time.
Besides this, applicants can get repayment plans of up to 5 years. On the other end of the continuum, it can be for just a year or even a few months.
However, applicants need to understand the demands of their choices in this regard. Usually, short-term repayment plans are more cost-effective because less interest accrues on the borrowed principal amount.
While it is the opposite with long-term repayment plans, it has an ease of payment advantage. This is considering how the borrowed principal and its accrued interest will be paid in little bits. This can be good for cash flow.
What Are the Interest Conditions for Same-Day Consumer Loans?
Broadly speaking, the amount that the applicant intends to secure and the applicant’s creditworthiness are the two major factors that determine interest conditions for same-day consumer loans. However, there are other secondary determinants including:
- Market conditions – This includes the intensity of the credit market’s competition
- Regulatory environment
- Lender’s internal policies
- Repayment terms
- Income & employment status
For the most part, the creditworthiness of the applicant has lesser influence when securing small amounts. A lot of creditors that service such clientele work on a uniform basis. This simply means that they are likely to offer the same lending terms to applicants, regardless of creditworthiness.
On the contrary, creditworthiness is usually a bigger deal when huge amounts are involved. This is quite understandable considering the higher risk taken by such creditors. As a result, eligibility criteria are usually more stringent. In some cases, there may be a need to offer suitable collateral.
Having observed the market closely, small amounts secured through this type of loan usually command much higher interest rates. It can be as much as 40 percent (effective interest rate) and even northwards.
On the other hand, interest rates are usually reduced when larger amounts are secured. It can be as low as 5 percent and as high as 15 percent.
Tips for Successful & Quick Same-Day Consumer Loan Application
Many creditors are in a position to lend you money as mentioned early on. In the same vein, many applicants are trying to secure same-day consumer loans. To this end, here are some tips to help you stand a greater chance of successfully and quickly getting your application approved:
Have a BankID
BankID has become a key part of the increasingly digitized banking setup in Norway. Precisely, it makes it possible to perform activities such as the authentication of one’s identity and the electronic signing of documents.
This is why it has become a huge part of how applicants apply for loans. So, it is possible to apply for lån på dagen med bankid which is the Norwegian translation for “applying for same-day consumer loans with BankID”. This is strongly recommended because it is faster and even more secure.
Send In Your Application Early
Quickly sending your application is about doing two things. Firstly, you need to send it as early as possible in the day.
The earlier your application is sent during the day, the higher your chances of having it seen and processed by the creditor on that particular day. This is instead of having it as part of the backlogs for the next day.
Secondly, you need to send it as early in the weekdays as possible. Sending the application close to the weekend could mean that your application ends up as a backlog for the next week. So, ensure that you do the needful in the area of timing.
Input Correct Information
Some people experience their applications being rejected by creditors. Inputting the wrong information is one of the common reasons for this. This is especially true when the applicant is very eligible for such.
For this reason, ensure that you go through whatever information you are sending. This way, you can be very certain that it is accurate.
By the way, this also calls for having certain required documents available. Some of the documents in question include:
- Copies of Paycheck
- Copies of Tax Return
- Residence Proof
- Identification Documents – Such as driver’s license or passport
Having these and a few others ensures that you are not stuck or unprepared at any point during your application.
Use a Loan Agent
Ordinarily, the process of searching and applying for same-day consumer loans can be quite a hassle. This is about the stress of comparing creditors in a bid to get the best deal.
Fortunately, loan agents can come to the rescue. This is considering how they can get multiple offers from various creditors.
By the way, whatever they get is non-binding, at this point. So, you are under no obligation to accept the offer.
Furthermore, they usually get the offers very quickly, which can be very helpful for times when funds are needed as soon as possible. So, these are a few reasons why you may want to use loan agents when searching for same-day consumer loans.
Conclusion
Loans can be very helpful. However, loan applicants have to be mindful of where they get them from. This is in the bid to avoid loan sharks and the harsh consequences that come with dealing with them.
Furthermore, credit lines need to be used wisely. Doing so ensures that you do not end up with a debt crisis.
