ByFinancial emergencies are occurrences that can happen to anyone. It goes without saying that these occurrences happen without notice hence the term ‘emergency’. When one is faced with such situation, there is a tendency to begin to panic especially when there is insufficient fund to tackle the matter.
Thankfully, you do not have to be stuck in a quagmire when faced with such emergencies. You have the option of asking friends and family to bail you out, or initiate a Go Fund Me drive. However, the latter option will not serve an emergency situation and in some cases, friends and family might not be financially buoyant enough to bail you out. This therefore leaves you with the option of taking out a loan.
There are different kinds of loans that you can look for at this point in time and they all come under the broad category of consumer loans. However, since yours is an emergency situation, you most probably need the money as fast as possible. This is where credit facilities such as Same Day Loan and Loan per Minute come in.
In this article, we will explore the basics of this type of credit, its pros and cons and how to go about it to get the best of it. So stay with us for more details; you can also visit www.forbrukslån.no/lån-på-minuttet/ for more information.
Basics of Lån På Minuttet
Understanding the basics of any financial instrument that you are considering is very important. This knowledge will help you prepare ahead of time for when the need for it would arise; if you are already in the position where you need it, then the knowledge comes in handy immediately.
For this reason, we will go over all the basic information that you need about this financial instrument.
What is Lån På Minuttet?
The term ‘Lån På Minuttet’ is Norwegian for Loan per Minute and it is a type of loan that’s given out to people in urgent need of funding. This type of loan is usually unsecured which means that you do not need collateral to get it.
When you hear the term ‘loan per minute’ you might be tempted to assume that you will get the desired amount you applied for in a minute but that is not so. The concept of this loan is that you can apply for credit facility and have your application processed and a reply sent to you in minutes. Thereafter, the disbursement of the funds happens in less than 24 hours.
Process of Applying
The process of applying for this credit is not complicated at all thanks to technology. All you need to do is visit the website of the lender of your choice and fill out the loan application form. The information that is required is usually as follows:-
- Name
- Your social security number
- Telephone number
- Email address
- The amount you want to borrow
- Desired repayment period
Some lenders may require information on whether you want to use the loan for refinancing and if it is so, there is a box that you are required to tick. Additionally, they would require the details of the creditor and how much you owe.
Furthermore, you will be required to ascertain that the money will not be used for any illegal enterprise or purpose. This is just to fulfil the legal obligation as per the law on money laundering. Some lenders may also have a box for ticking the purpose for the loan. However, this purpose is not binding because you can state one purpose and use the money for something else.
Once you submit your application, it is vetted digitally and if you meet the requirement for qualification, you receive the notification within minutes. Conversely, if your application is rejected, you will also receive your response in minutes.
Requirements for Qualification
Once you send in your application, the lender will carry out a credit assessment to determine your eligibility for the loan. This report is based on your financial report which is gotten from the Debt Register and Credit Reporting Agencies.
Different lenders have slight variations to their requirement for qualification but there are requirements that are across board and they include the following:-
- You must be of legal age. Some banks/lenders peg this at 18 while others go slightly above that.
- You must have verifiable fixed income.
- You must be resident in Norway for at least the past 3 months and have a permanent address in the country
- A good credit score (some lenders may waive this but it would come at the cost of a high interest rate).
- A Bank ID (electronic Signature).
Pros and Cons of Loan per Minute
This credit facility comes with a number of benefits and some drawbacks. Let’s briefly list them below:-
Pros
- It’s very fast as every process is digitized.
- It’s more convenient as there is no cumbersome paperwork to be done and you do not have to visit any physical office.
- It is easy to access as long as you have a mobile device and internet connection.
- It is an unsecured loan which means you do not have to present any collateral. Click here for more information on unsecured loans.
- The qualification requirements are not as stringent as with traditional credit facilities.
Cons
- Interest rate is usually higher than traditional credit facilities as lenders can fix their rate outside well established matrix.
- The amount you can borrow is usually small (not as much as with traditional credit facilities).
Tips for Getting the Best Loan per Minute
There are a number of things that an applicant can do in order to enable them get the best option of this quick loan. They include some of the following:-
Prepare all Relevant Documents and have them Handy
Oftentimes people in dire need of money forget that the banks or lenders would request for some documentation. These documents are meant to show proof of income and other factors such as residency and legality. So the faster you have your documents ready, the faster your application can go; so the best thing to do is to gather all the documents necessary before you start your application.
The most common documents to have ready are:-
- Copy of the payslip of the last 3 months or payment form for social security. The number of months required vary from bank to bank but it is always safer to have 3 months documents ready.
- A copy of your latest tax return
- Any other document that shows proof of income whether formal or informal.
Remember that these documents would not be submitted manually, so you need to have the digital version of these documents on your device/laptop.
Apply on Time (Early in the Week)
The aspect of the process that takes the longest time is the disbursement of the funds and this depends to a large extent on when the application was made. In the Norwegian banking system, transfers are made 5 times on weekdays; 05.45, 09.45, 11.45, 13.45 and 15.45 Monday to Friday.
Looking at these times, you can decipher the best time to put in your application. Do not make the mistake of applying on Friday afternoon because that means that you would get the money applied for on Monday. The best time to put in an application if you want it as fast as possible is between Monday and Wednesday.
Apply to as many Lenders as Possible
You need to apply to as many lenders as possible so that you will be able to sift through and get the one that best fits your purpose. The things to consider and compare among the lenders are the amount that you can apply for, the interest rate and the repayment duration. You should also look out for the requirements to qualify for approval.
Conclusion
Quick loans for emergencies are great life savers (both literarily and metaphorically). These credit facilities have been instrumental in salvaging situations that would have proved fatal; they have also made people’s life more stress-free.
That being said however, people have also been known to have gotten into cycles of debt because of carelessness in accessing the loans. In this article, we have shared some tips and information that will help you leverage these quick credits to your best advantage. Ensure that you bear them in mind so that you can make the best use of these loans to get out of tight corners.
