Text message loans – Convenient but at a price

When you need money urgently and cannot afford the luxury of applying to a financial institution submitting various documents and completing the formalities, you need not worry. You can get instant loan by just sending a text message to the lending company who commit to transferring the required funds into your bank account within a few minutes.

This company is revolutionizing the way people get access to emergency loans. Very often, people fall short of money at super stores while checking out or need urgent cash to repair their cars. This kind of a facility has been long overdue and is being welcomed by people though some may tend to misuse it for frivolous reasons as well.

The facility however comes at a steep price. For a one week loan, the rate of interest is a staggering 994% APR. Moreover, there is also a processing or handling charge of £1, a registration charge of £1 for every text that you send requesting for the emergency instant loan.

If you delay repayment, you will find that the costs add up further at a rapid pace. A day’s delay in repayment pushes up your cost by as much as £25 towards administration and transaction fees and you thus end up with a sum of £135 to be paid.

The lending company waits for a period of 45 days beyond which it refers the case to its collection department who would levy further stiff administrative and processing charges. It is therefore important to use the loan for the moment and purposes required and quickly repay it so that it does not become a millstone around your neck.

The loan by text is a sophisticated version of the popular “payday loan” arrangement. The company that has launched this scheme has reported a very encouraging response from people and despite no marketing claims that the number of customers seeking this facility is increasing every week.

No related posts.