Urgent loans are financial products that, until the arrival of this new century, had not been precisely the preferred part of the population that was looking for funds for their projects outside the realm of family and friends.
What is what has led to this situation, in which they have become an alternative to which more and more people join? The answer is not univocal and, in addition, it has been configured in different times. That is why it is worthwhile to review why urgent loans have been consolidated as suitable options for the financing of individuals. Take note of what, next, we are going to tell you.
Urgent loans are for individuals
In the first place, we have to clarify that there is a circumstance that usually coincides in all the profiles that are interested in this type of financial products. It treats, as the own denomination of said product implies, of the urgency with which a financing is needed that does not stand out by its high amount.
For these reasons, these loans have been designed for individuals and not for companies. Resorting to them implies that, given the need to deal with certain immediate payments, there is neither solvency nor liquidity. A solvency and liquidity that customers who request these loans rely on recover in the short and medium term.
It is a punctual lack that has originated the request of the urgent loan, but the same accreditation of a regular income requested by the credit institution that grants it, proves that this problem is circumstantial and temporary and can be corrected by means of income. which, in the near future, will get the beneficiary.
As you can imagine, a private person does not ask for these loans, for example, for expenses as large as paying the furniture of a new house. One of these loans, in these cases, would only be good for paying a percentage that he would not have to pay for the total purchase. Nor are they loans designed for large companies. However, an SME itself could make timely use of one of these financial products, without going any further, to be able to afford a machine.
Why are these financial products adapted to specific user profiles?
Little by little we have been defining the profiles that are going to feel a special interest for the urgent loans. Broadly speaking, they are financial products that have very attractive characteristics for entrepreneurs.
We refer both to people who are starting to start their own business and to those who have been working with them for some time and who still need occasional financing to keep them afloat or make them grow. The self-employed are, without a doubt, the workers that can most require these loans.
But they will not need them, in principle, to pay the abundant taxes they have to face in our country every month. In the same way that a private individual should not make use of these contributions to pay for what we know as current expenses. Expenses such as electricity and water supplies or the children’s school fee, which will have to be met each month.
To pay for all these expenses, it is necessary to have a stable economic situation in the medium term. An urgent loan has not been devised for this kind of monthly disbursements, but for the occasional and circumstantial needs. If you can not pay the usual expenses on a regular basis, what you have to do is reformulate the item you allocate to expenses of your domestic budget.
Resorting to immediate loans can save you from the problem on occasion, but it should not become a frequent wildcard. If this use were made of them, it would not take long to be over-indebted, due to the accumulation of interest payable.
An evolution that has consolidated them attractive
Urgent loans exist since the financing activity began to be regulated officially. There were always people who needed the money with greater speed and, therefore, were willing, to get it, to stick to the conditions of return that agreed with those who left it. Conditions that, in general, used to be more demanding than those that characterized common loans, for whose return a longer period of time was contemplated.
Closer to our days, these loans were regularized as special financial products within the framework of the credit market. At the end of the twentieth century they were already differentiated from the usual loans and credits and were announced in the mass media as immediate loans. The speed with which the money was received was particularly valued, which outlined a very specific market niche for these products. They were, therefore, still secondary products in the financial field. Because of their conditions (especially because of their interests), they were referred to very isolated uses.
However, with the arrival of the 21st century a key event in the history of humanity was going to take place, which would also have very positive consequences for the evolution of these financial products: the popular consolidation of the Internet.
Internet as a key to the growth of these loans
The possibility of communicating in a network (beyond the number of people and the distance between them) in real time has undoubtedly the greatest advantage when it comes to betting on these financial products. If the old fast loans already offered the telephone attention as an advance, in comparison with the meetings in the seats of the traditional banks, in matter of immediacy, the possibility of operating by Internet surpassed this agility in the managements.
In this sense, the relative savings to work on the Internet (need for fewer workers and real estate) allowed certain credit institutions, alternatives to life banking, to make economies of scale that made it possible to offer more advantageous conditions to customers. .
The online processing facilitated, on the one hand, the convenience of carrying out the requests for the urgent loan. On the other hand, it helped to promote more attractive products and that customers would not see them only as a last resort, as it used to happen at the end of the nineties of the last century.
Another historical event would be key when it comes to consolidating these financial products among Spaniards. Pay attention to what we are going to tell you.
An economic crisis as a relaunch of urgent loans
Just as the arrival of the Internet in our lives meant an evident improvement in our communication conditions, which would no longer have the same limitations of time and space, a negative historical episode would contribute to boost urgent loans.
We are referring to the structural economic crisis that began in 2008, which significantly affected the banking system of our country. So much that it became necessary a reform that happened, in addition to a rescue with public money, by the demand for more severe control measures. As it was found that there had been excessive defaults on the repayments of the loans approved during the years prior to this crisis, more in-depth controls were imposed on the risk departments of the banks.
These controls were intended to verify that they were going to begin to tighten the conditions for the approval of the loans. Consequently, requirements such as an endorsement, a payroll or not having been registered in the census of defaulters managed by organizations such as Financial Credit Institutions and RAI would begin to be requested as guarantees for the repayment of the loans.
The present of a rising financial product
As an intermediary in the operations between lenders and borrowers, at Astro Finance we are interested in the potential clientele of the urgent loans having all the opportune information at the time of choosing them.
Among the advantages offered by these loans, we emphasize that they will save time and money in the making of photocopies and their subsequent delivery in the offices of banks. You will not have to keep your queues in front of the offices of attention of the venues or stick to your opening hours of the branches. On the contrary, you can do all the procedures from your own home, with the convenience of carrying them out at the time that comes to you right and from your own computer.
Remember that you have to register a user and enter the platform, where you will find the loan simulator. You will choose how much money you want (between 300 and 800 euros, for example) and you will decide to return it within a specific period of time, which will generate the operating fees.
Once you have also entered your personal and banking information, if the loan is approved, the money will reach your checking account as quickly as the credit institution has committed.
In short, urgent loans are convenient to avoid problems of occasional defaults and to deal with specific incidentals.