In a sudden and unexpected need for a smaller sum of money, ”sms lån på dagen” are often a convenient and simple solution to the problem. But what is it really?

Sms loans are a form of loan that involves the borrower can borrow a small sum of money over a shorter period. Normally the loan amount between 100 and 500 $ and is paid back within 30 days. There are also lenders offering larger amount with a longer repayment period. The advantage of these loans over other types of loans is that you usually will be notified within a few hours, and that the money in this case are available in your account within one business day from the date of application.

Why is it called SMS lån på dagen?

The term ”sms lån” or ”lån via sms is slightly misleading. When the loan form originated in Sweden around 2006 emanated from the SMS communication. Over time, however, it proved easier, safer and more convenient to start from a site where the applications and communications are managed, and virtually all lenders manages loans through internet. Therefore, the name today is not much to do with the text at all.

New rules 2018

2015 was an investigation started that aims to reduce debt in Sweden and this investigation will also look at how the rules for loans to be tightened. Many think of course that's good as long as the requirements do not allow the rapid disbursement disappear because we think it is a nice service and a possible interest rate caps adapted to the small loan size and short repayment periods. A loan could never have the same interest rate that a private loan because the loans are so small and have such a short payback.

The requirements for sms lån

Moreover, the lower requirements of the borrower. Eligibility requirements vary among lenders, but common is that you must be free of credit history and be registered in Sweden to take SMS loans. It also has a statutory right of withdrawal of 14 days to allow the borrower toll can repay the credit if he repents.

While it is easy and convenient to take a SMS loan is all the more important that borrowers take responsibility for their loans. Taking loans even economics do not permit may cause problems in both the short and long term.