An SMS loan is a loan of a slightly different type than the usual classic one usually talks about. Instead, an SMS loan belongs to the category that is usually called micro-loans.
This means that you can only borrow small sums of money and that they will normally be repaid after only 30 days. If you then compare a SMS loan, there are some other things that you get to look at than you do on other loans. Things like effective interest rates and repayment time are given less importance in this form of loan.
Here, we should instead look a little closer at what you need to know when comparing SMS loans in as good a way as possible. Because it is important to compare different loan institutions when considering applying for an SMS loan as it differs in part from their terms.
SMS loan = fixed fee
If you are more than looking for direct comparisons of the prices of different SMS loans, we can advise you to visit the part of Loan and Credit where we have compared different SMS loans.
On ordinary loans, it is interest rates that will entail the large cost of the loan in total. SMS loans often have no interest at all, but there are only a number of fixed fees that you have to pay. The price of a loan is then obviously higher for how big it is. For example, it costs around USD 300 to borrow USD 1000 and it costs close to USD 600 to take an SMS loan of USD 5000.
The important thing to keep in mind when comparing SMS loans is that you look up all the costs and summarize them at a price for the entire loan. Since the price is one of the things that differentiates the various credit institutions most, it is therefore also a very important thing to check when comparing SMS loans.
SMS loan = short repayment period
The most common repayment period is 30 days from the day the loan is taken. However, there may be some loan institutions that offer a slightly longer loan period, for example, it may then be the issue of 45 days.
After all, it costs more to take an SMS loan for 45 days than it does to borrow money for 30 days. But maybe it suits you better, so check out how long the loan is on when comparing the SMS loans.
What determines when comparing SMS loans?
Since the SMS loans are quite simple loans, in the end it is usually just about finding the loan that you think is the cheapest. Since different lending institutions offer different large loans, this does not mean that the same lenders are always the cheapest.
If you do your job properly you can often save a few hundred bucks. Namely, there can be such big differences between the most expensive and cheapest lending institutions. This should be enough as a reason to want to compare SMS loans.