These days, it cannot be denied that there are thousands of people all over the world who are suffering financially. They might be working but the amount of salary they receive on a monthly basis is not enough to support their living, specially those who have families to support and take care of. There are also those people who experience some financial emergencies before their pay day. Being put in either of these situations is definitely a troublesome one.
The good news is, there are now a number of financial institutions who are more than willing to help people who are experiencing financial issues specially during emergency situations. This is possible through loaning services. The truth is, there are various kinds of loans that you can avail, but not all of them fit for your situation. This is the main reason why you need to get well acquainted first about the different kinds of loans before deciding which one to avail.
An open-ended loan is something that you can avail over and over again, as long as you repay the loaned amount and abide the terms and conditions initiated by the loan provider. Credit cards are the ones that are used here in getting and spending the money. Of course, there is a credit limit for this kind of loan, and you should stick to that limit if you don’t want to get some penalties.
Unlike an open-ended loan, a close-ended loan is the type of loan that cannot be able to be availed again. Right after you repay the loaned amount, there is no way you can make a loan again under it. If you want to loan again, it is just like you will go back from the very beginning. You will find another kind of loan that fits your requirements.
Secured loan is something that you can avail if you have some valid collaterals. Some acceptable collaterals are houses, cars and some other expensive stuff or properties that you have got. In case you cannot be able to repay the loaned amount, the collaterals will cover it. One best thing about secured loan is that the loan interest is lower that the others.
Needless to say, you won’t be needing some collaterals in this type of a loan. This is not that strict when compared to some other kinds of loans. But the thing is, it may have higher interest rates that you might don’t like. In some cases, Lainan is one good example of this kind of loan.
What Exactly Loan By Text Message Is?
Well, as its name suggests, this kind of loan can be availed through a text message. Haven’t you heard about it before? This is actually a new kind of loan that people can avail nowadays. The thing is, this is just a short term kind of loan. Meaning to say, you need to repay the amount you have loaned in just a short period of time, may be a couple of weeks, a month, or a couple of months, depending on the requirement of the lender. Thus, in case you are not expecting for a money in a couple of days or weeks like your salary payment, then loan by text message may not be the perfect loan that you should avail. Unless, you are trying to make a mess with the loan provider.
Basic Requirements of Loan through a Text Message
Just like some other kinds of loans available these days, there are also some sets of requirements required for those loans that can be done through text messages. This is one great way of the loan provider to make sure that their loaners are real and will not run away for their obligations. Here are the basic requirements you need to comply:
- Online Registration – Yes, even though it can be done through texts, you still need to go online for a complete registration process, unless the loan provider will just be okay with text registration. It will now depend on the lender actually, but it is more advantageous if you register online so that you can also take a look on the lender’s webpage. There are some more information there that might be helpful for you.
- Active Bank Account – In case you don’t have any active bank account, then it is time for you to have one. It is one important requirement of this kind of loan since it is where the money will be deposited if your loan application is accepted.
- Bonafide Resident of the State of Country – Almost all of the lenders that offer loans that can be done through text messages limit their loaners to the residents of the state or country where the lender is located. This is to make sure that it will not be hard for them to collect the payments of their borrowers.
These are just some of the basic requirements that must be complied in case you want to avail loan by text message. Keep these requirements in mind because they might be helpful for you in the future.