If you’re in a bind, you’ll be happy to know that many banks offer consumer loans that can be obtained in as little as one day.
“But wait,” you’re probably saying to yourself, “What does that really mean? Can I really apply for a loan, be approved, and see the funds enter into my account all on the same business day?”
The short answer is, yes!
Of course, that is only if you follow the proper procedure. In this article, we’re going to walk through all the information you will need in order to initiate the process and see it through as quickly as possible.
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What is a Consumer Loan?
If you’re asking yourself the above questions, you’re off to a great start. It’s always a good idea to know what you’re entering into before you begin the process.
A consumer loan is when a citizen borrows money for any reason, as long as you intend to use it for legal purposes. As long as it fits within those confines, you’re good to go.
Whether you intend to use the money to remodel your kitchen, buy a boat and sail around the world, finance a costly knee surgery for your beloved Staffordshire terrier, or just invest in the blossoming second-hand beanie baby market, the world is truly your oyster.
Of course, we’re not just talking about asking mom and dad for the money with a promise that you’ll, like, totally repay them as soon as possible. We’re talking about the big bucks here. You’re going to want to go to the bank.
With the bank, things are a lot more official. You’ll ask for the amount you need, and they will come back with a set of terms. These terms include the interest rate as well as any fees you will be expected to pay. Click to find out more about interest rates.
An interest rate is the percentage of the loan amount the bank will charge you in order to loan you the money. Sound confusing? Let’s look at an example to make things clearer.
Say you want to borrow one thousand kroner from the bank. You apply and the bank comes back to you with an interest rate of five percent. Five percent of one thousand is fifty. That means that you would ultimately be responsible for repaying not just the amount you borrowed, which was one thousand kroner, but also the interest, which in this case was an additional fifty kroner.
Because of interest, the amount of money you would owe the bank would be one thousand and five kroner.
What About APR?
APR stands for Annual Performance Rate. This is the real number to watch when you’re looking into loans. Unlike interest rates alone, the Annual Performance Rate takes into account all relevant fees. This means that taking a look at the APR can be more beneficial to you when you are still in the planning stages of your loan process.
Be sure to check both metrics against each other when you’re comparing terms. You may find that a beneficial interest rate may be less beneficial in the long run.
“Why,” you may be asking, “would the annual performance rate be high? What goes into that decision?”
Again, you’re asking some great questions. Have you made a big financial decision before?
The lower the amount of the loan, the higher the fees you can expect to pay. The same applies for the term of your loan: the shorter the term, the higher the fees.
Gather Your Information
Now that we’ve gone over the basics of the terms involved in a loan, it’s time to get down to the nitty-gritty.
If you are interested in obtaining a loan on the same day you apply, you’ll first need to have all the important information at hand. Sure, it sounds like homework. But if you take a little time to prepare yourself, it will pay off during your application process.
First thing’s first: you’ll have to meet the banking institution’s minimum age requirements. For some banks, this could be as young as eighteen years old, but it is more common for the minimum age to be twenty years old. Some banks even require that you are twenty-three.
Next, you’ll have to have proof of citizenship. Many banks will only lend to Norwegian citizens. If this doesn’t apply to you, don’t give up. You may also be eligible if you can prove that you have been a resident of the country for at least three years and have paid your taxes diligently during that time.
As long as you meet these requirements, you can move on to the next step.
The next task ahead of you is to gather your relevant financial information. You’ll want to have pay stubs in order to show your proof of income. Some institutions only require your most recent pay stub, while others might ask for three months of proof or more.
You should also be prepared to have your most recent tax return ready. This is another common piece of paperwork that many banks require in order to process a loan application. This is in order to ensure that you will be able to repay the loan as scheduled.
If you have any extra income, be sure to include paperwork to document this. If you own an apartment building and collect rent monthly, you’ll want to have those pay stubs. If you have a hobby business selling lady bug key chains to senior citizens, be sure to include that as well. If you collect child support payments, this is also valuable information the bank will take into consideration.
The more income the bank sees you have, the better the terms of your loan. Be sure to take the time to gather this information because it could end up saving you hundreds, or even thousands of dollars.
Once you have all of this in order, the next step is to have your BankID ready. If you’re unfamiliar with the term, it is a kind of electronic signature that you can use to do your banking online or over the phone.
Your BankID can be obtained rather simply: all you need to do is contact your regular bank.
Without a BankID, you can still apply for and be approved for a loan. The only hitch is that it might take longer to process. You may need to sign a physical paper and mail it in or go in to the bank in person, whereas with your BankID you can process things in a matter of minutes.
Time to Apply!
Now that you’ve gathered all the relevant information, it’s time for you to really dig in to the process.
The best thing for you to do is to apply to a number of different institutions. Why would you do that if you’re interested in the speed of your loan?
That’s another great question. You’re really on the ball!
The reason you want to apply to more than one bank is simple: each bank is going to have slightly different terms. One may place more emphasis on your current income, offering you a lower interest rate. For another, your age might factor in more heavily. You wouldn’t want to go with that bank and pay twice as much interest just because you’re only twenty, now would you?
This process can be overwhelming. Some choose to work with a lending agent to help simplify things. A lending agent might have a relationship with several banks. As a result, they are able to apply quickly and help you sort through the resulting information. Their services are typically free for loan customers, so what do you have to lose?
This is not a step you want to rush through. Remember that you could save yourself hundreds or even thousands of dollars by making the right decision.
Time is of the Essence
If you’re interested in receiving your loan on the same day you apply, the time you send in your application can matter.
While some small loans can be approved by the bank’s computer, others need to be reviewed by a human employee. If you are seeking a larger loan, then you’ll want to apply early in the day. Another thing to keep in mind is the day of the week. If you apply late in the afternoon on a Friday, even if you are approved that day, you may have to wait until Monday to see the funds in your account. Click the link: https://www.forbrukslån.no/lån-på-dagen/ for more information.
Once you’ve put in all this hard work, go ahead and pat yourself on the back! Financial decisions can be tricky. Some even find them overwhelming. But once you have all this information, you’ll be ready to apply for a loan that will appear in your bank account on the same day. It’s like magic!
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