Friday, December 04, 2020

Choosing a loan & installment time

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

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

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

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:

  1. 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%.
  2. Your loan cost will then be $ 55 / month.
  3. You pay off the entire loan within 2 months.
  4. 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.

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