There are different ways to earn your day to day living. Sometimes when the earning and the expenditure is not at par, you try to go for a loan. The citizen of Sweden finds it easy to apply for a loan as it is as easy as sending an SMS or a short message service over the mobile phone. The increasing trend of sending SMS for obtaining a loan can be devastating for people who do not know how they will return the loan taken. This loan is mostly taken by the young generation, and they start feeling the pressure once they reach the time to start paying back the loan amount.
Easy to obtain a loan through SMS
You would find it easy to obtain loans that you get without offering any security or collateral. You will have to send an SMS, and many companies in Sweden will provide you with a loan. They will send you different schemes through which you can choose the one that is best suited for you. When you compare Swedish sms loans with the loans obtained without collateral in other countries, you will find the rules to obtain loans are easy. The amount that is offered is more than is offered in other countries.
Loans in other countries
Some companies offer such small loans without collateral, but they take all the details of the person. The borrower must repay the loan on their payday. They allow a few paydays to return the loan an soon the loan is paid off. This also happens because the payday loans are not of a significant amount and the lending organization checks all the details before offering the loan.
Young people for SMS loan
When you are taking an SMS loan in Sweden, the average amount that you can borrow is around 245 pounds, and the interest amounts to around 45 pounds. The payback of this loan has got to be done within a month, and that becomes difficult for the young people – who mostly go for this kind of loan. When data was collected, the debt recovery organization of the country was given to collect debts of 20,000 people who took a loan through the SMS facility. A significant 30.9% of this number was young people aged between 18 and 25 years old.
Trying to curb the fees
The country is concerned about the data that is obtained, and they are trying to bring down the interest and the fee structure. The Swedish ombudsman is, therefore, trying to get the lending organizations to review their loan structure and the fees that they ask for. They have asked the companies not to charge the fees at a higher amount than the initial interest on the loan. The advertisements of this SMS loan come at different public places where the young people will find them and apply for the loan, whenever they feel some need for money.
Whenever you compare Swedish sms loans with the payday loans of other European companies, you will find the loan offering have tightened up as the government of these countries wish to introduce higher protection for the consumers. The Swedish companies offer a lot of options to the consumers though, and they are also going to change policy so that they can offer a fair loan payback option to the borrowers.