Swedes fast loans
Every year, tens of thousands, or rather hundreds of thousands, Swedes take fast loans even though interest rates are higher than for bank loans. Many may wonder why this is so and here you have the answer:
- Most banks do not lend sums less than USD 10000.
- You may not borrow money with payment notes from the bank.
- You usually have to earn well over USD 100,000 / year if you are to borrow from a bank.
- The sms loan is usually in the customer’s bank account already on the same day, while it usually takes several days before a bank loan reaches the customer’s bank account.
So why don’t the banks offer a product similar to what the fast loan companies offer, ie small fast loans that do not have such high requirements? Then maybe you as a consumer would get cheaper and the banks would in turn get thousands of new customers. It may seem a bit stupid for the banks not to enter this market as it would give them greater market shares, but it has its explanation.
Therefore, banks do not compete on fast-loan markets
- It is not profitable to lend a thousand dollars and offer the same interest rate as for larger bank loans. So why can’t they set a higher interest rate that is profitable for such small loans instead of not offering such loans at all? Well, it’s probably about credibility. The bank is afraid that their credibility will deteriorate if they suddenly offer smaller loans with a higher interest rate. No, they really don’t want to be associated with the fast-loan industry.
- When it comes to payment remarks, Snabblan24.nu believes that the major banks have an outdated and rigid view of this. After all, there is really no reason to deny debt-free people to get a loan just because maybe two years ago they had a debt balance with the petitioner who gave them a note. Instead of looking at what caused the debt, the banks stare blindly at the payment note itself. They seem to think, “Waffles? Applicants have a payment note! Thus, it is a person who cannot manage his finances. Never let him borrow from us! ”. But that’s not always the case. It may be that the applicants became unemployed and therefore incurred a debt, but otherwise are very good at managing their finances. Yes, we do not really know why banks are so stiff with this, and therefore they will never be able to offer small loans to people with payment remarks.
- The relatively high income requirements are associated with the banks offering large loans and the more you borrow, the more you have to earn. Sure, if the banks offered smaller loans, the income requirements would probably be lower for these loans, but since the bank does not dare to set a sufficiently high interest rate, it will still not happen.
- And last but not least: why can’t the bank at least make sure that the money ends up in the customer’s bank account directly or at least the same day? That’s because the big banks are bureaucratic and rigid. You may receive your loan immediately after the application is granted if you apply for a loan at the bank where you have your bank account, but unfortunately it usually takes a while before the loan itself is granted. And if you apply for a private loan from a bank you never had to deal with before, they want you to open a bank account with them, otherwise it will take up to three banking days before the money reaches your bank account because transactions between banks can take so long. No, it really is not as fast and smooth as when applying for a sms loan. Many sms lenders instead have their money placed in several bank accounts with several different banks so that the money can be transferred quickly to your particular bank account. But for example, Cream Bank hardly wants their money placed in a Nordea account so that Nordea customers get their money quickly, right?