Are you interested in getting a consumer day loan? Day loans are gaining in popularity due to the fast application procedure, approval, and money transfer, which take place over a single day.
A limited number of lenders offer day credits, both small and large. After providing the necessary documentation online, a credit assessment is performed digitally, and the money transfer is performed within hours.
The guide below provides an explanation of every aspect related to consumer day loans.
Day loans
Approximately thirty niche banks in Norway offer consumer day loans in different variants. A few of them offer small loans of up to 20,000-30,000 kroner, while more than half of these banks have an upper loan limit of 500,000 kroner. Borrowers are paid out on the same day of the application. If using the money for addressing personal needs, you can get repay the funds over a period of five days.
Moreover, while you are free to choose the period on your own, it might be limited if the amount you borrow is very low. For instance, the chances of being approved for a 5-year payback period for a loan of NOK 5,000 are almost non-existent. Lenders obtain all the necessary information about applicants online through an automated process of collecting their tax information, credit score, payment history, debt information from the debt register, etc. See this article to gain a better insight into debt.
Since all this information is digitized, it’s possible for banks to make credit assessments on the day. Getting as many offers as possible before you make a decision is the most reasonable thing to do. Having a lending agent by your side will help you collect between ten and twenty quotes from different banks. Hiring a lending agent is beneficial, as you will be saving time, getting a good basis for comparison, getting advice from the customer center, etc.
The most important thing to remember is that the services of lending agents are free of charge for applicants, whereas the offers are non-binding. These offers are usually valid for thirty days, after which you will have to apply again, and the lenders will conduct a new credit assessment.
Interest terms
The interest terms differ across lenders quite considerably. On average, banks offering microloans up to NOK 30,000 have an effective annual interest of over sixty percent regardless of the applicant. Banks offering larger loans have effective interest between 8 and 18 percent. In this case, the rates are determined individually by considering the applicant’s credit score and the borrowed sum.
Better scores and larger loans result in more favorable interest rates. Applicants aren’t informed about the interest terms until they receive an offer from a particular bank. The lowest amounts offered by the largest number of banks are either NOK 5,000 or NOK 10,000.
The application
Online applications for consumer day loans are easy to complete, as only the necessary information needs to be filled in. Consumer loans på dagen can be easily obtained owing to BankID and other technological advances. The requested information usually includes one’s social security number, telephone number, account number, and email address. You should also state the desired payback period and loan sum.
Candidates might be asked to describe the aim of the loan, even though these financial products are designed for free use. The usual reason for asking such a question is for banks to ensure the loan isn’t used for anything illegal like money laundering. For example, even if the purpose you state is purchasing a car, there is nothing wrong if the funds are later used for renovating your home.
Furthermore, the application procedure can be affected by the loan sum. Although most steps occur automatically, there are certain conditions that might delay the process, such as the sum you apply for. Most lenders are able to accept or reject an application within several minutes if the sum is less than 50,000 kroner. In such scenarios, everything is performed automatically without the involvement of a bank employee.
Nevertheless, when applying to borrow 500,000 kroner from the same lender, the routine is for a bank customer service representative to review the application. This part of the procedure goes quickly as well, but it has to be done during the office hours of the bank. The usual time spent on approving day loans might be a few minutes or several hours. In general, you will be provided with an answer until the day is over.
Additionally, lenders often state that it takes between one and three days from the moment of application to the time the loan is transferred to your account, naturally if the application is granted. It depends on whether the application was sent on a Monday or a Friday. If you send the application on Friday, the money transfer cannot take place over the weekend, meaning it has to wait until the following Monday.
It’s worth knowing that domestic transfers between different lenders occur five times a day from Monday to Friday. The first transfer takes place at 05.45, whereas the last one is at 15.45. The money will arrive on your account fifteen minutes after the initiation of the transfer.
Income documentation
Banks usually request consumer day loan applicants to provide income documentation, which might delay the process if they don’t have it ready. A credit check is usually enough for banks to know your income. Visit this site, https://www.wikihow.com/Check-Your-Credit-Score, to learn how to check your credit score. Anyhow, lenders have a habit of asking for additional information, such as a copy of your last payslip and a copy of your last tax return.
Self-employed individuals need to provide a business statement copy and approved accounts for the last three years. Income documentation is sent to the online bank by following the provided instructions at the same time as accepting the loan agreement with BankID. It’s vital to include any income you gain from hobby activities, child support, rental income, etc. The higher the income, the better the chance of getting the loan granted.
What happens if you don’t have BankID?
BankID is a form of electronic identification that’s used for numerous electronic actions, such as signing a loan contract electronically. It makes it possible for users to enter such agreements at any time from anywhere. Applicants who have no BankID can obtain this service by getting in touch with the bank they normally use.
The alternative would be signing the agreement in the old way. Having no BankID, however, means that you won’t receive a consumer day loan. Most banks don’t accept anything other than a BankID signature.
Minimum requirements
The minimum requirements of lenders for obtaining a consumer day loan vary regarding age and income. Usually, applicants should be no younger than 20 or 23 and have a fixed income of approximately 120,000 kroner annually. Your total debt mustn’t exceed five times your income.
The candidates have to be Norwegian or have a Norwegian D-number. If applying with a co-borrower, the requirements for age, place of residence, payment history, and income apply to both borrowers. Applications with payment remarks are most likely going to be rejected with an exception when the money is to be used for refinancing the relevant debt.
Debt collection scenarios also lead to refusals, but exceptions are made more frequently. Once again, everything is determined by the size of the debt that has gone to debt collection. If an applicant has a payment default, he/she needs to provide security for the loan. It means either a mortgage on real estate or a guarantor.
It’s possible for individuals to get a consumer day loan to refinance other debt. The main difference between borrowing money for consumption and refinancing is that in the latter case, the bank holds the responsibility to settle the old debt. In layman’s terms, you won’t receive the money on your account.
It’s necessary to state the refinancing purpose in the document, along with the sum and creditors in question. Once the loan is granted, the lender will check with the creditor that the debt is correct. This action is easily done, meaning the debt can be repaid on the day you have applied.
In conclusion
If you need immediate financial assistance, consumer day loans are the right decision. Every step is conducted online to save time and improve convenience!
