SMS loan was the loan form that started around the year 2006 and quickly broke through as a big discussion bomb in Sweden. The loan form that originally started in Finland exploded completely and suddenly everyone wanted to borrow USD 3000 via sms. Nowadays there are no longer sms loans, but the fastest loans we have in Sweden are fast loans. A loan with a higher amount and a longer repayment period, but still pay off quickly.
Sms loans are a memory only
Ugh what many people hated sms loans and then I do not mean the borrowers, but those who did not “need” to use the service. They decided that sms were the biggest crap on earth and black painted everything and everyone who had sms to do. If you had borrowed money via sms loan, you would definitely not tell anyone, but risk being declared unconstrained and sentenced as stupid in the head.
Now sms no longer exists. The service did not disappear as desired, but grew and became fast. Fast loans meant larger loan amounts, signing via BankID instead of via sms, a complicated income declaration to fill in when applying and and the opportunity to invoke repayment rights for the loan (at sky high costs) So everyone was happy and happy. NOT.
Quick blast away, away, you stupid parasite
No quick loans were not good either, but just as bad as SMS loans, most people thought. This is the way we cannot have it, the stupid parasite called fast loans must be banned, the rules changed and the people unmasked yet again. There are so many people who have no idea and understanding of what to do and put in. Gone your stupid parasite – we do an interest rate cap, so maybe these lenders stop lending money through quick loans.
Quick loans, sms loans, loans at all are not an impulse act, but a cry for help
You do not take out a loan if you do not need the loan. Making a loan application is a cry for help. You ask the lender for help when you have no advice or opportunity yourself. If a sms loan or fast loan, takes 15 minutes or 2 hours to get into the account, does not matter. You take these small loans because the banks that lend larger amounts do not want to lend small sums. Either because the income or the credit history is too bad, or because the loan amount is too small. And a bank that lends a large amount to you, either a credit without collateral or a mortgage, will get back a large amount in interest over the long time the loan is repaid (several years)
A small loan may have a higher cost of one month, but after that month everything is repaid. It is not possible to calculate the annual interest rate for a sms loan, since you do not borrow the money for a year. Then it would be expensive. But as the lenders for SMS loans did, that they lent out for example USD 1000 and took for this an interest, fee or whatever you want to call it, at USD 150 does not feel like the worst thing in the world. On the other hand, taking a mortgage and paying USD 8,000 in interest each month (about USD 100,000 a year, on the other hand, feels very sour. And yet the interest rate is very low)
But it is fortunate that we do not have sms loans, because they are no longer there. Now the lenders are rebuilding their products according to the law change. Now comes the annual loan instead. Exciting! And expensive!