Express money: features and benefits of borrowing money online

Express loans are one of the forms of consumer lending to the population. Such loans are issued in banks, but it is much faster and easier to issue them in microcredit organizations – lending companies. It is possible to get express money online within a few minutes without leaving your apartment, which makes such microcredits indispensable in case of emergency.

Main characteristics of short term express loans

Disease or urgent repair of household appliances, the need to borrow money before salary or other urgent needs are easily solved if you use one of the many proposals of the lending company. In addition, the design of an express loan is carried out under a simplified procedure and is devoid of many bureaucratic formalities.

The main characteristics of express loans:

  • The receipt of the necessary amount occurs within a few minutes after the appeal.
  • The use of a scoring program speeds up the verification of borrower data.
  • Availability of services means not only full coverage of settlements where you can get a microloan. Express money is issued without a credit history check, the offer can be used by a pensioner or unemployed, in short, anyone who has reached the age of majority and has access to the Internet.
  • Non-earmarking of such loans allows the borrower to use the funds received at their discretion, without reporting to the creditor about their spending.
  • There is no any type of loan security. That is, do not need certificates of income, guarantors or registration of property as a pledge.
  • Small loan size and short-term use. Such loans differ in insignificant amounts and are issued for a period from several days to several months.
  • A high interest rate on the loan, perhaps the only drawback of the express loan. In this way, MFIs try to compensate for the high risks associated with the possibility of loan defaults. However, large percentages are a kind of payment for urgency, accessibility and the ability to solve immediate financial problems.

Who benefits from an express loan?

If we talk about banks, express lending is not the most profitable way for them to extract profits. Despite the clearly overestimated interest on express loans, banks prefer to deal with more familiar forms of lending, which involve a thorough check of the client’s solvency, which guarantees the timely receipt of invested funds.

Banks go on express loans with great reluctance, but too much popularity of fast loans among the population forces credit institutions to include them in the list of their services. At the same time, banks limit the number of customers who can receive an express loan, issuing them, for example, to individuals who have a deposit in the same institution, or employees of organizations or enterprises who receive salaries in the same bank.

Lending companies are also well aware of the risks associated with issuing an express loan, but their goal is to attract as many clients as possible by offering them services that cannot be obtained from banks. Therefore, virtually everyone who wants to receive funds in a lending company, despite the lack of documentary evidence of income or a bad credit history. To compensate for possible losses associated with loan defaults, lending companies try using a high interest rate.