Quick loans will not go away, but sms will change their name and change the terms (a little). You’ve probably read the articles that quick loans will disappear this fall. Is it true, will all fast loans be removed from the market? Obviously not. There are always ways to bypass rules. When the government wanted to stop sms loans, the lenders changed their name to fast loans and stopped marketing the loan to be applied via sms. Instead, it became fast. It can be interpreted in two ways, either that the loan is quick to apply or quickly to be paid off in the account. Choose what you think fits.
What does this mean for you as a borrower that the government says that fast loans will be banned? It is not the name of the quick loan that disappears, but instead the scheme that is used today. Anyone who usually uses quick loans knows that the loan can be repaid within 30 days. Calmly, you will be able to continue borrowing money from your favorite lenders. There are today some 40 lenders who call themselves fast loans. They have already begun to change their loan terms before the big day when the fast loan is to be banned. What then is the difference? Well, the lender simply changes the repayment period, making it a little longer so that it will not be a quick loan but an annual loan. The repayment period will be at least 61 days instead of 30 days and with the possibility to postpone the payment on a yearly basis. Better or worse or no difference for the consumer?
The rules that will break through have been in publishing for many, many years, even when fast loans were called sms loans. The difference for you as a borrower is that you get a little longer to repay the loan and that the cost of the loan must not exceed the loan amount. This means that if you borrow $5000, it must not cost more than $5000 extra in interest and costs. In fact, it is now not so common for lenders to have such high costs. Ten years ago, there were some rogue players for sms who charged hutless costs, but they disappeared as quickly as they came, due to insufficient liquidity.
To circumvent the rules, Swedish lenders are now doing the same as they did in Finland when the rules were changed there. They increase the repayment period for years instead of month. This does not mean that you cannot and cannot repay the loan after a month just like today. The lender specifies in the loan terms and agreement how much it will cost to repay the loan in a year and that is the amount you will repay.
When it says you will have more time to repay the loan or is the risk even more likely to fall into the trap of loan abuse? You will certainly be able to continue to borrow without a UC, regardless of whether the lender chooses to call it fast or annual loans.