You can apply for a micro loan in three different ways.
Internet – All credit institutions accept online loan applications. There are forms to fill in on their websites. Borrowing money through the Internet is both easy and simple.
Mobile phone – A number of lending institutions offer their customers to apply for micro loans only using the mobile phone. The advantage is that you do not have to sit at a computer but the disadvantage is that the options are smaller. These loans are usually called SMS loans.
Telephone – A few also offer their customers that they call and talk to them and apply for micro-loans that way. The advantage is that you get in touch with an operator, while the disadvantage is that there are not as many who receive applications in this way.
I want to borrow but don’t know if I can pay back?
Here it is highly recommended not to borrow any money as it can be very expensive in the long run if you do not repay your micro loan. If you are doubtful, you should never borrow any money. Micro loans are suitable for those who know they have money within 30 days to repay the loan (sometimes the maturity is a little longer, eg 60 or 90 days but the loan is also more expensive).
How often can one take a micro loan / SMS loan?
You can only take one micro-loan at a time from each loan institution. When this micro-loan is then repaid, you can apply for a new one if you wish. If you really want more than one loan at a time, you have to get a loan from two different loan institutions. Just remember to make sure you have money that you can pay back.
Is it possible to pay off a micro loan?
The most common thing is that it is not possible to pay off a micro loan, but you are expected to repay the entire amount when the loan has expired. However, in recent years they have become more common with micro loans that extend over a few months and then there will be more than one repayment.
The slightly larger loan amounts usually have, for example, 60 or 90 days maturity and in those cases it is almost always so that you pay monthly. Thus, for 60 days, there are two installments and for 90 days three.
How fast can I get the money?
This is a bit different for different lenders. Some are really quick to pay out money and then it can go as fast as 15 minutes. However, the most common thing is that an application that is approved before 13:00 on a weekday means that the money is already in the account on the same day. The loan application that is approved after 13:00 on a Friday or during the weekend will be paid out by Monday morning. Then there is nothing that says the money cannot be paid out faster than this
If you have E-leg or Bank ID, your application will be a little faster and it can make you get the money a little faster overall. Often lenders are also able to pay off quickly to those who have a Nordea person account, so with this you get the money even a little faster.
What happens if you do not repay a micro loan on time?
The loan institution will send you a reminder if you do not repay the loan on time. Usually a reminder fee of about USD 50 will be added, there is also a risk that a delay fee will be added. If you do not pay the money then it will all proceed to debt collection. If you want to read more about what happens if you do not pay a debt on time, the tip is that you visit the Finance portal which tells you what happens next if a debt is not paid.
Does the credit report look like a loan institution does at UC?
Some lenders use UC to make credit information while others choose other credit reporting companies instead. Those who do not use UC’s service will also not register with UC and your credit rating will not be affected. Information regarding each lender is most easily found on their own website.
Is it possible to take a micro-loan / SMS loan despite payment note?
It is very different what rules lenders have for specific payment remarks. Some deny the application directly if there is a complaint, but there are also a number of lenders who may actually approve you. These usually look at your finances as a whole instead of staring blindly at specific payment remarks and they do not automatically deny people who have remarks but instead take into account all the advantages and disadvantages.
What can you use the money for?
No lenders will ask you what to spend the money for. This is entirely your business, so if you want to spend the money to buy a sweater, go to the pub or something else, you decide for yourself. The important thing for the lenders is that you can repay the money and that you do it at the end of the term.
How much money can I borrow?
The most common micro-loans offered by the banks are between USD 1,000-3,000. Then there are quite a few who offer you as a borrower to borrow 4,000 – 6,000 as well. In recent years, micro loans have also started to rise in larger amounts, all the way up to USD 10,000. These higher amounts are becoming more common. The high amounts also usually have a maturity of 60 or 90 days.
There may also be rules at the loan institutions that prevent you from taking their biggest loan for the first time. For example, you may have to borrow USD 2,000 for the first time in order to borrow USD 3,000. However, not everyone has these rules, so if you really want to borrow USD 3,000 the first time you take out an SMS loan, you have to choose a lender who does not have such requirements.