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Quick small payday loans: what they are and how they work

The credit market presents a wide range of different solutions that adapt to the needs of any potential audience of beneficiaries: among the various proposals available there are, for example, small fast payday loans, which lend themselves less to the satisfaction of some standard requests from part of the customers, such as the renovation of a property or the purchase of a car, but in recent years have become one of the most successful financing categories precisely because they allow small daily expenses to be met, guaranteeing an immediate liquidity to those who request. Let’s see together how they work and what are the peculiar characteristics of small fast payday loans, taking into account also some categories of subjects to whom these forms of financing are addressed preferentially.

How fast small loans work

How fast small loans work

The name already says it all: modest sums and speed in disbursement characterize primarily the small fast payday loans. These are loans that generally do not exceed three thousand euros and are paid out rather quickly precisely because they are aimed at satisfying small needs that are immediately needed.

It must be said that the small loans are not all the same: there are in fact those that require the normal guarantees by the applicant, as in any other type of loan, and others that present themselves in the form of loans without guarantees. In the first case the interest rates are contained between 8 and 10 per cent, while in the second hypothesis, or in the absence of guarantees from the customer, these loans are disbursed with interest rates contiguous to the limits established by law, since for a credit institution the risk is greater, and the interest rate applied is directly proportional to the increase in this risk profile.

Obviously when we talk about small loans without guarantees it does not mean that anyone can get this loan, in fact each case must be evaluated individually: certainly for those who are in difficult conditions and risk being expelled from normal credit procedures, this can represent the only possible solution to see your request fulfilled.

Loans changed

Loans changed

A particular example of these modest loans are the loan notes, a type of product that up until a few years ago was scarcely used while today it is beginning to receive a discreet interest from customers. What is it? Basically the difference with a normal personal loan is that instead of the usual monthly installments, to be paid by debit on the current account or by payment of bills to repay the credit institution, bills of exchange are used. This type of loan is suitable both for small amounts up to 5 thousand euros and for sums of greater proportions, but there is a certain degree of success in the context of small loans.

Small loans: to whom they are addressed

Small loans: to whom they are addressed

Generally speaking, small fast payday loans are aimed at anyone who needs to obtain a loan quickly and for a small amount, but there are some categories of subjects that, with statistical data in hand, have a greater tendency to favor this type of loan. This is the case, for example, of housewives, and it is no coincidence that there are more and more credit institutions that allow even those who do not enjoy a classic payroll contract to have access to this form of credit: often it is enough to provide them with alternative guarantees, such as the signature of a guarantor, to get the green light for financing. Another category of subjects that is particularly attracted by the small fast payday loan are the protesters and the bad payers, and even here sometimes the guarantees of third parties are enough to obtain the financing: the loan formulas are different and obviously there is always the possibility that the request the request is rejected, but a real hope to get a small amount also exists for those in the infamous bad payers black list.