Of course it is good that there are sms loans that are paid out quickly and that are not really that expensive if you pay them back within a month or three. For example, if you borrow 3000, you pay from $ 300 for it if you repay the loan within a month. If you put up $ 3000 in 3 months, it can be about a loan cost of just over $ 600. Sure, $ 600 is 20% of the loan amount and means that the loan has an effective interest rate of slightly above 200%, but there are still no astronomical amounts involved.
Always choose a short term for typical sms loans
It is often very expensive to take a sms loan from a sms lender that offers longer maturities than 3 months. S-Purity Lending ‘s loans, for example, are quite cheap when it comes to maturities of 1 – 3 months but if you decide to choose 6, 12 or even 24 months it will be too expensive. Lenders Bank will show you how it looks at S-Purity Lending.
- 30 days: Loan cost $ 600 (10% of loan size)
- 60 days: Approximately $ 1,230 in loan cost (approx. 20% of the loan size)
- 6 months: $ 1,878 (approx. 31% of the loan size)
- 12 months: $ 3,792 (62% of loan size)
- 24 months: $ 7,608 Here you have to pay significantly more in loan costs than the loan costs!
As you can see, under no circumstances should you take out a loan with typical mortgage rates and put it on for longer than 3 months, it will be absurdly expensive. However, S-Purity Lending ‘s small short loans are very affordable.
If you need to borrow longer
Of course, we at Lenders Bank have other options than short-term mortgages for those who are unable to repay several thousand $ within 1-3 months, these loans can be found under large & small private loans.
If you want to avoid both UC and take a sms with payment remarks, Cream Finance is the absolute best option and their loans are actually really cheap in this context:
- A loan of $ 6,000, which is set up in 6 months, costs a total of $ 660 if you receive an individual interest rate of 13% (the lowest interest rate is 9.9%). This is quite a bit compared to S-Purity Lending ‘s cost of $ 1,878.
- If you get an individual interest rate of 26% and borrow $ 20,000 for 24 months, it will cost you a total of $ 6,592 ( $ 274 in loan cost per month). If you had taken a loan from S-Purity Lending , it would have cost $ 25,408, ie more than the loan was from the beginning. You therefore save $ 18,816 on borrowing from Cream Finance instead of S-Purity Lending .
So you borrow extra cheaply
If you plan to repay a loan within 1 – 3 months, you can still take a small private loan with a repayment period of 1 year and then settle it early, then you will get really cheap. Let’s give you an example:
- You take out a loan of $ 5000 with PenMagnet Finance, which you set up in 1 year and receive an effective interest rate of 12.13%.
- Your loan cost will then be $ 55 / month.
- You pay off the entire loan within 2 months.
- Your total loan cost will be $ 165!
As you can see, you save a lot of money on taking a small private loan and then redeeming the loan early, it becomes much cheaper than taking a sms loan. Unfortunately, private loans have slightly higher loan requirements, but you can always try to apply. Otherwise, there is always Cream Finance.