The big hit of 2018 was the payday loan, which is understandable as it has many advantages over mortgage loans. The amount of credit that can be borrowed is flexible, ranging from a few hundred thousand forints to up to 10 million forints. Nothing proves the popularity of payday loans better than the fact that Hungarians borrowed HUF 450-460 billion last year. This is due to the small amount of paperwork, minimal administration and a few days of administration. This may also be the reason why people prefer payday loans over free mortgages. Below you can read about the 5 reasons to apply for a payday loan.
5 reasons for a payday loan
1.) No collateral is required to take out a payday loan
You do not need real estate collateral to take out a payday loan, which is one of the unsecured loans. What the bank examines when applying for a payday loan is income and employment.
2.) Cheap loan application
In the case of a payday loan, applying for a loan will cost no more than a few tens of thousands of forints, while the one-time cost of a mortgage will be around 100-150 thousand HUF (valuation, mortgage entry, notarial deed, etc.). However, there are promotions at credit institutions when you release some or all of these start-up costs.
3.) Fast administration
The payday loan has a short lead time. Within a few days, you will be able to get the amount of credit requested. However, for this, it is important that the administration goes smoothly, for which it is essential that the necessary documents are in place. It’s a good idea to know in advance what documents are required to apply for a loan and get them in advance. It doesn’t take a lot of paperwork, usually an employer’s certificate or a NAV income certificate or bank statement is good for the financial institution. Conversely, mortgages have a lead time of 30-60 days.
4.) Low THM
In recent years, the price differential between a mortgage and a payday loan has been narrowing. While the average APR for a payday loan was 31% in 2012, it was only 14% in Q3 2018. Currently, you can find a payday loan with a 7% APR.
5.) The loan amount is free to use
With a payday loan, you get a free hand on what you spend on the money taken, meaning the money can be used freely. Free-to-use mortgages are also available on the market, but they have higher interest rates than residential mortgages.
To apply for a payday loan, use the Kelly payday loan calculator. You can simply choose the credit institution that offers you the best credit. After entering your information, the system will list the banking partners that you have the opportunity to borrow. After that, all you have to do is choose the best deal. Once you have selected your financial institution, a bank employee will contact you so you can schedule an appointment, which saves you a lot of time by not having to wait long at the bank.