SMS Loans or Private Loans? – Compare different types of loans

SMS loans are a type of loan that often has a high interest rate and a subscription and setup fee. It is not uncommon for long-term SMS loans to be more expensive than other loans. With us you can get loans that have lower effective interest rates than the typical SMS loan.


What is SMS loan?

SMS loan?

An SMS loan can be tempting to take, but can also be expensive. By offering quick payment of money without requiring any security, SMS loans are aimed at people who are in great need of money.

People in pressured situations may be the ones who are really least suited to getting a loan. Especially if the loan has a high interest rate and set-up fee. Then the problem is that you just have to move forward and then get even bigger.

Of course, there are many different SMS loans, but here are some points that characterize the typical SMS loan:

  • You get the money quickly. After a credit check, you get the money into your account.
  • It has high effective interest rates. Many SMS loans have a high nominal interest rate and several fees that make the effective interest rate stick away.
  • It can get expensive in the long run. With a lower interest rate to attract loans, the interest rate can be significantly increased after a few months.


Different types of loans

private loan

Private loans and account credit are two options that, like SMS loans, offer you the opportunity to quickly get money in your account. Interest rates are also often much lower than for SMS loans. Private loans require no collateral and are a so-called blanc loan. You must have a sufficiently good financial position to repay the loan and be at least 18 years old to receive it.

Account credit means that you have been granted a credit linked to your account in advance. You activate the credit when you need money and only pay interest as long as the credit is used. Usually, the credit is paid back the next time you receive money in your account.


Benefits of private loans

private loans

  • You can borrow money without collateral.
  • You can borrow between 10,000 and 350,000 USD.
  • You can pay off the loan for up to twelve years.
  • You can make free extra mortars. You can also repay the loan earlier at no extra charge.
  • We never lend more than you can afford.
  • Even if you are not a customer with us, you can apply for the loan.


Benefits of account credit

account credit

  • You have already applied for funding and when you need the money, the credit is always ready to use. When the money in your account is over, the credit is automatically activated.
  • You do not need to determine the loan amount in advance, instead you only use the part of the credit you need. This is possible because you have been granted a credit amount in advance, which rests until you activate all or part of it. You only pay interest on the part of the credit you use.
  • You do not need to handle any invoice. The credit is automatically refunded when money comes into the account. The interest rate and the annual fee are also automatically deducted from your account.


Low interest rate SMS loans?

Are there low-interest SMS loans? Often, SMS loans have a high interest rate on the amount, or high amortization and setup costs. We do not offer SMS loans, however you can apply for Private Loans via mobile. BankID is required for this. We do a credit check to make sure you have the option to repay.


Here’s how to apply for a Private Loan

private loan

  1. Choose how much you want to borrow and for how long. Click Apply and identify yourself with Mobile BankID.
  2. Fill in your details and click Submit. You will receive answers directly on the screen *.
  3. Sign the loan documents with Mobilt BankID. Clear! The money is now paid out.

If you have a co-applicant, you will receive an answer when both completed and approved the application. In some cases we cannot give an automatic message and we will contact you via SMS or call you if needed.

Count on your loan and apply


Healthy credit

Healthy credit

We are always careful about our credit, and we are for you. This means that we do a credit check and count on how your finances are affected by the loan and make sure that you can handle the costs even if the interest rate goes up a few percent.