Deciding whether and when to apply for financing through a personal loan has become a common struggle for most people nowadays, given that we all, at one point or another, require an extra influx of money that can solve our financing issues. The same goes both for entrepreneurs and for regular people who’ve found themselves in certain situations requiring money they don’t have. Multiple reasons for getting a personal loan exist, including getting them for debt consolidation, for large purchases, for unexpected costs, or even for organizing weddings of holidays. Furthermore, multiple pros of getting these loans exist, some of which are listed on this site.
Personal loans are a specific category in themselves, but there are categories within that category. Microloans, or small loans, for example, are one of the highly popular categories nowadays, and especially those advertised to be obtained on the same day of applying, also known as mikrolån på dagen. Having heard of this option already, you must have wondered what it is, how it works, and whether it should be your choice of personal loan. If you haven’t heard about it yet, then getting more familiar with it could be quite useful, as there’s a chance that this type of a loan is perfect for you, and you don’t want to miss out on it due to lack of information.
The lack of information is usually what leads people to ignoring certain options, not understanding if they are actually useful or not. Learning about those new things you’re not exactly aware of, however, is a must, especially when talking about finances, and especially when already thinking of getting a loan but not being sure which one to go for. This is precisely why you have to learn about the same day microloan option, get better acquainted with it with the aim of determining if you should get it, as well as with the aim of figuring out how you can get it. All important questions, and you’ll get answers to them and much more significant ones below.
What Is A Mikrolån På Dagen?
Let’s first explain the microloan in general, so that we can proceed to helping you understand those that are advertised to be given to borrowers on the same day they apply. Basically, a small loan is in practice the same as any unsecured consumer loan, with some slight differences. The term “unsecured” here indicates that people borrow money without providing assets as security and collateral to the lender. It is a highly popular option among borrowers, and a highly risky one for lenders, which is why they usually secure them by offering higher interest rates. Although, those are still quite reasonable, so nothing to worry about there.
As mentioned, there are slight differences to be aware of between the regular consumer loan and the micro one. Those are related to the borrowing conditions, requirements and limitations, starting with the limitation on the amount you can borrow. In Norway, the maximum amount can range from NOK 1,000 to NOK 30,000, but there are even some lenders that advertise larger amounts, i.e. those up to NOK 100,000 as small loans. So, clearly, the maximum amount depends on the lenders, and so does the longest repayment period you can choose, which is usually no longer than 12 months, especially for those amounts lower than NOK 30,000. Given the shorter repayment period, the effective interest rate is expected to be higher, while the nominal rates are usually at the same level.
Read about getting a small loan here: https://www.bankrate.com/loans/personal-loans/small-loan/
Now, the term “på dagen” used above indicates that borrowers can get their money on the same day they apply for it, which, frankly, sounds a bit too good to be true. Is it true, though? Well, while the terms works well for marketing purposes, it is certainly not misleading, as there are lenders focusing specifically on offering those same day microloans to their borrowers. There are, however, far more lenders that will still need to take some time to process the application and extend you the money, but even then, the processing period won’t be long. Meaning, all mikrolån på dagen options are fast, and some of them do offer you the opportunity of completing the entire process in just one day.
If wondering how long it will take if the loan is not processed on the same day, let me clear that up for you. No more than a few days. Up to 72 hours is usually enough for the lender to perform all the checks and provide you with the money you’ve applied for. Remember, though, that if you need a quicker solution, you can definitely find those lenders ready to complete everything in one day. You just need to look harder if that’s the case, i.e. if you’re pressed by time and you need your money in a matter of hours rather than a matter of days.
What Is It Mostly Used For?
Why are people using this type of borrowing, though? Or, in different words, what are microloans mostly used for nowadays. Covering unforeseen expenses that need to be paid off quickly, buying furniture, completing minor renovation projects, getting some extra money for your holidays, or getting some extra money for no huge purpose whatsoever, perhaps because you’re short on cash… Those are some common reasons for getting this particular lån solution. There are, of course, more reasons, and now that you know what these loans entail and how they work, you’ll also know whether you should get it, or if you should find a different financing method.
Can You Get One?
Before trying to decide if you should use this option, you’ll need to figure out if you can exactly use it, as there are requirements that all borrowers have to meet so as to be eligible for this solution, as well as for any other borrowing solution existing on the market today. Being a resident in Norway and having a fixed address in the country for at least a year is requirement number one. An annual income usually between NOK 100,000 and NOK 200,000 and a good payment history with no active collection cases are also important prerequisites, and then there’s the fact that you have to be over 18 to even think of applying. The annual income and the age requirements can vary from bank to bank, but this is most commonly what to expect.
But, Should You?
So, cutting to the chase, should you actually get a mikrolån på dagen or is this an option that you’d better avoid? Well, you’re the one who’ll have to make this decision for him or herself, but there are quite some advantages to it you should be aware of. For starters, it provides you with the opportunity to get quick cash when you most need it and when you don’t have a different way of getting it, allowing you thus to quickly get out of a financial struggle or cover some time-sensitive costs that you weren’t able to foresee.
Apart from that, it also allows for borrowing money without risking any of your private properties by offering them as collateral, which is another huge benefit to keep in mind. The quickness of the process is definitely the biggest benefit, but the idea of not risking your assets is a close second. Furthermore, the short repayment period is also a great thing, as it means you won’t be in debt for a long time. Instead, you’ll get out of debt in 12 months or less, lifting that burden of your shoulders and being able to divert your income and your entire budget to different things, instead of having to keep making monthly payments. All in all, a same day microloan could be life-saving in certain situations, and its advantage lies in the fact you’ll get the money quickly and you won’t pay much interest due to the short repayment period.
How To Get It?
Upon deciding to use this option to finance something in your life, be it a renovation project, a purchase, a vacation or anything else, you’ll want to understand how to do it correctly. While talking of the requirements for getting this type of a loan, I’ve mentioned that those can differ among lenders, making it clear, thus, that you’ll first need to find the perfect lender, i.e. the one whose requirements you’ll meet, as well as the one who will meet your requirements. And your requirements are, of course, related to interest rates and the overall borrowing terms. You want the rates to be reasonable, as well as all of those other terms and fees that the lender may charge, so make sure to compare those before deciding which particular company to work with when getting your same day microloan.
Once you’ve chosen the lender, you’ll have to follow their applying procedure, which is, fortunately, rather easy, given it can even be completed online nowadays. Waiting for the lender to process the application is a must, but we’ve made it clear already that the waiting period won’t be long since you’re, after all, getting a mikrolån på dagen. When everything’s been processed, you’ll sign the agreement and receive the money you’ve applied for.
