Online loans are becoming more and more popular. One of the reasons may well be that it is a quick, simple and effective way to borrow money. It does not take more than a few minutes from the time you apply until your application is processed and you can take out the loan you want. Furthermore, there is no requirement for collateral and documentation when you take out online loans and you are therefore not accountable for what you borrow for.
What are loans without documentation and security?
When you take out a loan with the bank, the process can quickly become lengthy, as the bank typically has both documentation and security requirements. However, these two things cover different things. Documentation and security are defined as follows:
The loan provider, typically the bank, may require to see documentation prior to taking out a loan. In practice, it covers the past three months’ paychecks, annual statements or other documentation that tells you something about your income. When the loan provider needs to see documentation it is to make sure that you actually have an income that can bear the extra expense it entails to raise the loan. In other words, documentation is required to assess whether you are creditworthy as a borrower.
Securing a loan, on the other hand, is another thing. Collateral is typically only required by the bank and in practice means that the bank can claim your accommodation or your car if you can not repay the loan. This is because, by providing collateral for your loan, you have typically used either car or housing as a mortgage. This is most often the case with larger bank loans.
There are both loans with and without documentation and security. Whether the loan is required to be collateral or show documentation depends on the type and size of the loan. With our online loan, however, you never have to provide security or show documentation. This is precisely because of the size of the loan and maturity.
This is how a loan works without documentation and security
A loan without documentation and security works in a very different way than you are used to with bank loans. Due to this, you may not be familiar with the procedure of online loans. Our online loan is 100% transparent and the application process takes just minutes. Below we have compiled a step-by-step guide to show how the online loan process works:
- Register as a borrower
- Sign with NemID
- Receive the money
You register as a borrower via our front page. Registration is done by entering your email address, mobile number and choosing the password for your personal profile on Tom Ripley. In addition, here you must provide a bank account number to which the money must be deposited. From your personal profile you always have a complete overview of your loan, and you can view and change loan terms from this at any time.
After registration, the final execution of your loan agreement is done by signing the loan with your NemID. It is also at this stage that we finally make a credit assessment of you as a borrower, as your NemID informs you whether you are registered in Experian (RKI) or the Debtor Register. If you are registered in one of these places, you will be rejected as a borrower.
Once identified through your NemID, you will receive immediate responses to your loan application directly on the screen. We transfer loans immediately, all year round.
In other words, it is a simple process to take out loans without documentation and security with us. You can borrow up to USD 12,000 if you have borrowed before and are 20 years old. If this is your first time borrowing from us, you can borrow up to USD 6,000 with a 50% discount for up to 30 days.
Advantages of loans without documentation and security
There are a number of benefits to loans without documentation and security. The probably biggest benefit is the quick application process that makes the type of loan advantageous for you who are in need of money here and now. Mortgages can be a good alternative to a cash credit or overdraft on the account, both involving the bank. Cash credit costs an annual fee to have, while overdraft overdrafts are subject to high interest rates. Since a bank loan is primarily advantageous for long-term borrowing, a short-term loan can in many cases be a good loan option.
Another benefit of short-term loans without collateral and documentation is that you can borrow quickly and easily, and you have it out of the world again within a shorter deadline. Thus, there are no continuous fees, such as for example bank overdrafts or overdrafts. Short-term loans are therefore an ideal loan option for you, who usually have some control over the finances, but find that the budget runs for a month or two.
The reason for this is that here you will not benefit from a cash credit because you rarely or never overdraw your account. Thus, the annual fee does not make sense in such a case. Even if you are faced with an extra cost that has to be paid here and now, however, few people want to overdraft, no matter what frequency they happen to be. Right here, short-term loans can help you get out of your temporary money problem – without you suddenly sitting with the bank in the pipeline.
Loans without documentation and collateral are thus an advantage for those who have an urgent expense but do not want to involve the bank as you know that you have the money available within a shorter time limit.
Disadvantages of loans without documentation and security
As with so many other things, there are also disadvantages to borrowing money without documentation and security. The main disadvantage is that with such loans you pay a higher interest rate than with bank loans. The reason for this is that you do not provide collateral for the loan, which is why interest on the loan is the loan provider’s only collateral.
It is therefore important that you identify your real loan needs before taking out a short-term loan. Thus, you do not borrow more money for longer than you need. If you borrow over ability, you run the risk of putting yourself in a difficult situation when the loan period starts. With us you can borrow at intervals of USD 100, which gives you a good opportunity to borrow exactly the amount you need, which is why you with a loan from us do not incur unnecessary debt.
Another disadvantage of loans without documentation and collateral is that the loan provider demands how much you can borrow, which is usually not the case when you take out loans with documentation. This is because – just as with the high interest rate – the loan provider does not have the opportunity to know if you are a good payer.
Who can take out loans without documentation and security?
We place relatively limited requirements on the borrower, which is why the vast majority of Danes can borrow from us. As the illustration above shows, you can borrow up to SEK 6,000 with a 50% discount if this is your first time borrowing and you are more than 20 years old.
If you are a repeat customer and have borrowed from us before, you can borrow up to USD 12,000.
We therefore offer first loans at a 50% discount, which means that you can borrow up to USD 6,000 at half price for up to 30 days as a first-time borrower with us. Thus, you have the opportunity to test whether our loan without documentation and security is for you.
Should you find out that it is not for you, no harm done. Conversely, if you find that it is a good way to acquire extra money, you can benefit from using our incorporated loan calculator on the side for subsequent loans. By adjusting the loan amount and maturity you always have an overview of what the real cost of the loan is. In practice, this is possible because the loan calculator makes a complicated interest calculation in seconds. Thus, you avoid a time-consuming process and the probability of different outcomes of the calculation is eliminated. There are several ways to do interest calculations.
Are there traps in taking out loans without documentation and security?
There is a regular talk about the “debt trap” in the media. As a result, the quick-loan industry does not have a pronounced positive sound in the general population. This is due to a generalization on the part of the media in the form of their interpretation that states that “all mortgage loans lead to debt”. However, it is far from most Danes that end up in debt trap. We sharply differentiate ourselves from the current concept of quick loans, which is why we offer a 100% transparent loan that makes us one of the best and cheapest providers on the market. However, there are a number of factors that you need to keep in mind before you apply for quick loans:
- Do you have the financial means to repay the borrowed money within a shorter deadline? Be honest with yourself. If you know that there is a high risk that you will not be able to repay the loan, look for other financing solutions.
- How much money exactly are you missing? Never borrow more than you actually need. The excess money is often spent on things you do not urgently need. It does not benefit your finances when repaying the loan.
- What are you missing money for? Is it an urgent expense or is it pleasure? Of course, if you have an expense here and now, it is difficult to avoid paying it. If you need a loan for a new iPhone or travel, it is sometimes possible to postpone the need. We will of course leave it up to you what you think you need here and now, but we would like to help as far as possible.
Even if you do not have to involve the bank when you borrow without documentation and security, it still requires an assessment of your financial situation. As it is not the bank’s job for this type of loan, we advise you to consider your financial situation before taking out a loan with us.
The three factors above are a good guide to which questions are central to asking yourself before taking out a loan. Where some Danes fall into the trap is that they often take out loans without actually identifying the possibility of repaying the money. Thus, the freedom and flexibility of the loan can suddenly be a disadvantage. Therefore, we strongly advise that you take out a loan if you know in advance that you will not be able to repay the loan within a relatively short time. For the same reason, we constantly make sure of the terms of our loan, as well as the transparency of our loan.
Are short-term loans as secure as bank loans?
In a time that is becoming increasingly digital, issues of identity security are being raised more and more frequently. All of our information is now online, which is why you are likely to be at greater risk than before. If you stand and need to borrow, you may also be more likely to make it through the bank because this is where you know it is for sure.
When you borrow from us, you do not compromise on security. We guarantee you identity protection when you borrow from us. This is because we use an SSL certification that allows unauthorized third parties to never view or manipulate your information. In other words, it is just as safe to borrow with us as in the bank.
If you need a smaller amount, it may be advantageous to borrow from us rather than the bank. The level of security is the same, but the loan process is far easier. Thus, it is not the security parameter that determines whether you should withdraw your account or take out a short-term loan.
Do you have questions about loans without documentation and security?
If you are left with questions about loans without documentation and security, do not hesitate to contact our customer service.
We are ready to answer any questions you may have about loans without documentation and security. With an average wait of 12 seconds over the phone, you never wait in vain when you contact us.
We do not recommend that you take out loans to pay off other debt. Furthermore, we do not recommend that you take out short-term loans for a long-term loan requirement.
Credit amount 6000, – Maturity 12 months Total credit costs. 7908, – Mdl. maximum payment 1716, – Total repayment 13908, – ÅOP 816.67% Debt rate / annual fixed: 243.3%. 14 days cancellation right on the credit agreement. Age 20+