Taking a loan is nothing strange. Today, you can borrow money online or at the bank. But which loan should you choose? Here we work out the concepts so that you can choose the right loan – simple, fast and safe.
The market for online loans is large and you probably heard of both fast loans and private loans, but what is the difference really?
Private loans and quick loans are unsecured loans aimed at private individuals
What differs are the loan terms, primarily the interest rate and the term of the loan. You can apply for a private loan from the bank and usually the terms are better than for a fast loan that you apply online with a credit company. However, the handling of a fast loan is considerably shorter than that of a private loan. When you apply for a loan online, you are usually notified immediately after you have sent your application. A private loan can take between 2-5 business days to be processed.
So, to summarize, is a quick loan:
- A private loan with a higher interest rate
- One smaller loan
- A loan to be repaid within a maximum of 90 days
- A loan that is paid out within 24 hours
While a private loan is:
- A loan with a lower interest rate
- A bigger loan
- A loan that can be repaid within 1-15 years
- A loan that is paid out within 2-5 days
Which loan is the most expensive, fast or private loan?
Generally speaking, a quick loan is more expensive than a private loan. This is because the bank can usually offer a lower interest rate on its private loan than an online lender. If you have landed a private loan with your bank, you are probably already a customer and the bank has a good overview of your personal finances. In addition, the bank can offer a longer repayment period than a private credit company. The bank simply runs a smaller risk than the credit company.
Quick loans are also called consumer loans, blank loans or SMS loans. When you borrow money online, it happens very quickly, even faster than when you apply for a loan online at your bank. The money is paid out within 24 hours and if you have a bill that is urgent, this is a true savior in need. Very few banks are as quick even if you were to submit a loan application online. At the same time, there is a reason why fast loans are usually defined as high-cost credits. A quick loan should be repaid quickly so that the interest rate does not go away.
Keep in mind that although a private loan is cheaper than a quick loan, there are also some similarities between private and quick loans:
- There are fees for both types of loans. The size of the fees may vary and the bank’s fees may not be cheaper than the credit company’s.
- The interest rate is set individually. This means that even if the bank CAN offer a lower interest rate, you may not receive a lower interest rate if your credit rating is crass.
- Both fast loans and private loans can have either a fixed interest rate or a variable interest rate. Loans with variable interest rates can become more expensive over time. Make sure you know what type of interest you receive before signing the loan agreement.
Which loan is best, private loan or fast loan?
It depends on your needs and your own financial circumstances. Your bank can offer you good loan terms, but if you have payment notes, it is likely that the bank does not want to lend you more money. In that case, the solution can be a quick loan. Choosing a good quick loan is not easy, but you can get help along the way. At LoanShooter you can compare different types of loans to quickly find the right solution for your needs. It is free to use our comparison service and no matter which company you choose, you can feel safe. We only mediate lenders who are under the supervision of the Swedish Financial Supervisory Authority.