How fast loans work.
One of the financial alternatives that more followers are reaping are undoubtedly fast loans. This type of product offers the possibility of obtaining very varied amounts of money in a short space of time.
These are loans that have practically no formalities and that allow you to enjoy quick money in just 15 minutes. The concession will be longer if the loan is higher.
What are fast loans and how do they work?
When we talk about quick loans we do it to refer to those financial products that give us the opportunity to get capital in a very short time. Financial credit institutions have specialized in this type of product, displacing other mediators, such as banks.
What are the main characteristics of fast loans
Main characteristics of fast loans
Quick loans are characterized mainly by three main aspects:
- The speed of concession. Without a doubt, the key element of quick loans is that they allow you to get money practically immediately. If it is amounts that do not exceed $ 1,000, it is normal for us to have the money in our checking account in less than 15 minutes. If the amount is already higher, the delivery time can be extended between 48 and 72 hours. Depending on which is our bank and that of the lender.
- Simplicity in the procedures. Unlike what happens with traditional banking, fast loans are agile and easy to process. It is not necessary to go anywhere to request the information or to send it. And we won’t be forced to wait too long to get a response, either.
- The online format. All these loans are characterized by being made through the internet. In fact, another reason why they are so quick to grant is that they are online companies. We can send the documentation through the Internet and formalize practically all the steps through the network of networks. Unless they are higher amounts, in which case a contract must be signed before a notary.
Disadvantages of fast loans
Perhaps the main disadvantages of quick credits are:
- High interest. Interest is another of the most characteristic elements of these loans. Loans of less than $ 1,000 that are granted in an average of 15 minutes are characterized by high interest rates. In fact, according to the Cream Bank, these amount to 1.1% per month. The repayment terms of this type of credit is usually a maximum of 30 days. Although at present due to the great competition in the sector many of these companies have gone as far as to extend the terms even up to 90 days.
- Possible penalties. When applying for these loans or any other financial product, it is important to review the contract in detail. Sometimes some of the companies that grant this type of credit include, in addition to the interests (more or less high) possible commissions and penalties in case of breach of the contract.
Types of fast loans
In general, we can divide fast loans into three main modalities depending on the repayment period, the amount and the interest.
- Quick micro credits. With these loans you can get up to approximately $ 1,200. They become effective in just 15 minutes and their interests are the highest. They are usually around 1.1% a day. As for the return period, it is normal that it does not exceed 30 days.
- Quick credits. They offer a little more capital, usually up to $ 5,000 and have more time to pay off. It can reach 36 months. As for the interests, they are somewhat lower than the previous ones and they pay the money in a maximum of 72 hours.
- Personal loans. You can have truly large amounts with these loans. These can reach $ 50,000 without problems. The repayment term is extended to 10 years and the interest is calculated in a personalized way depending on the characteristics of the loan.