Financial emergencies can show up anytime and most often, even your emergency fund is unable to handle the situation. Situations like these often need fast resolution; that is where loan on the hour comes in.
This is a financial product that allows consumers to apply and get approved for loan within an hour. Every bank has some variations to the way they process and dispense this credit facility but the main things about it are the same everywhere. These main things include the fact that there is no collateral required and the process is quite fast.
Some banks and financial institutions advertise their fast track loan system as Same Day Loan. Although there are similarities which include the fact that these loan processes are faster than the conventional system, they are not always the same thing. You can check out this site for more clarification: https://www.forbrukslånpåtimen.com/. In this article, we will discuss all that this concept entails and how you can successfully borrow on the hour.
How to Increase Your Chance of Getting Loan on the Hour Fast
Although this type of loan prides on how fast it is processed, the bank still needs to verify the details of the borrower. However, the process is usually automatic and efficient.
That being said, below are some tips on how to increase your chance of getting your application approved and disbursed as fast as possible:-
- Ensure that you send in your application in the morning on a weekday (Monday to Friday).
- Ensure that you fill in accurate information right off the bat. This will save you the time of having to redo the application process.
- Apply in a bank where you are already a customer. This means that you wouldn’t need to start fresh registration.
- Have all your documents ready to be presented upon request. Some of these documents include pay slips/stubs or receipts of utility bills.
- Make sure you sign any document that pertains to the loan with your bank ID.
How to Borrow on the Hour Easily
The easiest way to borrow on the hour in our opinion is to use agents. This strategy of using agents is the best because they work with several banks and lending agencies. All you need to do is contact them, fill one form and they will proliferate and submit to banks in their network.
Below is a summary of the steps when you use an agent:-
- You fill out a form with the agent
- They send out your application to the relevant banks in their network
- The banks accesses your information online and verifies them
- Your application is processed after the verification.
- Offers are sent to you for consideration
- You accept an offer and sign off on it with your Bank ID
Imagine that you attempt to go through these 6 steps with many banks? You may end up wasting so much time and sometimes money. More so, you might even make some mistakes in the process. So that is why we say that using a loan agent is the best way to get your loan fast. These agents may operate from an online platform or have a brick and mortar office.
How to Choose the Best Offer
Although we have stated above that the easiest way to get a loan on the hour is by using agents, you may decide to DIY. While it is true that there may be no time for research and due diligence per see with this type of loan but you can still look out for some things.
Listed and discussed below are some of the most important things that you should quickly check out before accepting a loan offer. The best terms and conditions will definitely help you to save money and oftentimes stress too!
- The Nominal Interest Rate – The interest rate paid on the exact sum that you borrowed is known as the nominal interest rate. It is only when this is low that the loan can be rated as cheap.
- Effective Interest Rate- This comprises of the nominal interest, other costs and fees. So in principle, this is the interest rate that one should really be considering.
- Duration For Repayment – One factor that affects how cheap or how costly a loan will end up being is the duration. For the kind of credit facility that we are discussing here, duration for repayment is short. But even at that some lenders will give longer repayment periods than others. So the longer repayment period enables you to make lower monthly payments but the shorter repayment period will entail higher monthly repayments. Note however, that the longer your repayment period, the higher the interest you’ll pay in the long run.
- Bank –If you live in Norway, it is best to look out for banks that will allow you to sign off with your Bank ID. This will make the process faster than if you had to append your signature. Additionally, look out for a bank that has great customer service and other features that appeal to you. That is why we advise you go with a bank that you already have an account with( that is unless, you do not really like their style)
Pros and Cons of Loan on the Hour
When some people think of loans, all they see are the ills and how one be trapped in debt; some on the other hand only see extra cash to solve a problem. The two extremes are wrong as every potential borrower should weigh the pros and cons of the credit facility they seek to acquire and then make an informed decision.
So below are some of the pros and cons of loan on the hour:-
- Process of application is quite fast and easy
- Approved fund is disbursed as fast as possible, sometimes within the hour.
- It is a source of urgent extra cash when needed.
- Does not require collateral.
- Comes with interest rates that are way higher than conventional consumer loans.
- Repayment period is shorter which makes it less convenient to pay back.
Things to Consider before Taking out a Loan on the Hour
As much as this kind of credit facility has its advantages, prospective borrowers needs to take out time and consider some things. This is best done even before the need for urgent cash arises.
Some of the things to consider are listed and discussed below:-
- Ability to start servicing the loan immediately you get it.
- Interest rate and accompanying fees
- Terms and conditions
- Your income
Ability to Repay
The first point is really important as the tendency to just take out a loan without a repayment plan in view is what keeps people in debt. Before you even start the application, think of how you will start servicing the loan. Bear in mind that the repayment period is short term; this means that your time starts counting once the funds hit your account.
Interest Rate and Accompanying Fees
Look out for every fee that comes with the loan bearing in mind that the credit facility you want to apply for is an unsecured one. Unsecured loans always come with high fees. Additionally, the interest rate also is usually higher than loans that come with security (secured loans).
Terms and Conditions
It is an established fact that there are proliferations of lenders both online and offline. What this means is that each lender will have its terms and conditions. Do not just assume that the terms and conditions of bank A will be the same as that of bank B.
You must do your due diligence to know and understand every detail of the loan agreement. The danger of loan on the hour is the urgency factor; do not allow this to trap you into debt that will end up frustrating you.
This is a very important point of consideration. Thankfully, the Norwegian government has passed a regulation that no one should be approved for a loan that’s more than 5 times their annual income. This helps to put a check on both borrowers and lenders that may want to ignore the consideration of a borrower’s income before approving a loan.
Only take out a loan that your income can comfortably carry. Your monthly payments should be one that would not totally disrupt your life (monthly living expenses).
We started out by pointing out that financial emergencies are a part of life. We also stated that loan on the day is a handy tool that comes to the rescue. We also went further to discuss the basics of the credit facility and also share information on how to take out this loan.
We believe that the information shared here will go a long way in helping any would be borrower to do it right.