Understanding The Basics Of SMS Loan (Sms Lån)

SMS loans are just like payday loans with the only difference being in how they are disbursed. They are short term credit facilities with high interest that consumers can access just by sending an SMS to the lender. The ease of access of this loan has made it a life saver for people in emergency situations.

That being said however, there are people who have dug themselves into financial quagmires because of the ease of accessing this type of loan. We have mentioned that this credit facility has a lot of similarities with payday loans. One of such similarities is its ability to enslave a person in debt.

While this article is not about debts, we just wanted to put that out there are we discuss the basics of this type of loan.

How Does SMS Loan Work?

The process of applying for and getting this loan is actually the simplest compared to other types of loans. We can break it down in 3 short steps:-

  1. Send an SMS to a lender that you are already registered with. The text message will contain your PIN (personal identification number).
  2. The lender runs a quick verification on the borrower.
  3. The lender disburses the money.

All the above happen in a matter of minutes.  Note that some processes must have occurred before now. If you are interested in SMS loans, you send in an application to a financial institution that offers this kind of loan. They will confirm that all the details you presented on your application is correct and after confirmation will send you a PIN. It is that PIN that you will include in your text message.

Although the interest rate for this loan is usually high, it comes in handy in times of emergency. If you are in a season in your life where your income is not too stable and you know that you will need a financial boost from time to time, then you should think of registering on these platforms.

Pros and Cons Of SMS Loans

Everything in life comes with advantages and disadvantages. So it goes without saying that this type of credit facility also comes with its pros and cons. They include the following:-


  1. Ease of Application – Applying for loan by text messaging is the easiest type of loan application. We have already explained this process in our introduction.
  2. Does Not Require Any Collateral – SMS loans are unsecured loans so the borrower does not need to present any collateral before approval.
  3. Approval Process Is Fast – Due to the automation of the process, it is faster than regular loan application which is done manually.
  4. Has Flexible Repayment Terms – The repayment is structured in such a way that the consumer can easily pay back.
  5. Can Be Used To Grow Credit Limit – This is one of the best ways for people who do not have a credit history to get one. Additionally, people who have poor credit score can also use it to improve their credit.


  1. Higher Interest Rate – The interest rate for these loans are usually higher than the conventional loans. This is of course due to the risks associated with unsecured loans.
  2. Lower Credit Limit – The amount that can be approved for this type of loan is usually small. You cannot get up to the amounts you get for auto loans or mortgages.

You can visit https://forbrukslånlavrente.com/sms-lån/ for more information on different aspects of this loan.

Alternative to SMS loans

Having taken time to weigh the pros and cons of SMS loans, some people might want to explore alternatives.  In this segment we will share some alternatives to SMS loans.

Small And Microloans

These types of loans are designed as unsecure loans. You can get them without collateral, but you must know that they have high interest rate. However, they come in handy in times of emergencies.

The requirement for these types of loans is usually lower since the amounts approved are usually small sum. Generally, this credit facility is great for low income earners and is also more easily accessible than other types of facilities.

Credit Cards

Getting a credit card can also be a great alternative. It is a line of credit that provides access to fast cash when it is needed. The credit limit is between NOK 5,000 and 600,000 and you can use the money for whatever you want.

The great thing about a credit card is that you only pay back what you spent. Let’s say your limit is NOK200,000 and you spend NOK10,000, you will only pay back that amount and the interest that accrues on it .

Additionally, a good number of issuing companies give their customers between 1 month and 3 months interest free. This means that customers who square their accounts during this period will not have to pay any interest. There are also benefits such as discounts, rewards and insurance. This makes it a good alternative to SMS loans.

Same Day Loan

This is a loan that can be processed and approved all in one day. A good number of banks advertise this financial product but you need to know that while the processing and approval might be done in a day, disbursement might take a little longer but not usually more than 3 days.

How to Get Loans Fast

We have discussed some options that one can explore if you don’t want to go with a text credit advance. However, you may be wondering what you will do if you find yourself in a situation where you need money in a matter of minutes/hours.

Well, we talked about same day loans; these are the fastest types of loans that are available these days. If you want to apply for a same day loan, we advise that you do so early in the day. Since the accreditation process is automated, the earlier you submit all the papers needed, the earlier your application will be processed and the earlier you’ll get your funds.

Another thing you can do is to use a loan agent. These professionals work with as many as 20 financial institutions so with them you can save time and also some money. They can get the best option for you faster because they already know how the system works.


SMS loan is a product that many financial institutions and lenders offer their clients to take care of emergencies. We have discussed the basics and the pros and cons.  But if you live in Norway where it is considered illegal, there are some alternatives for you to explore. This article also presented these alternatives that you can opt for when in need of cash for emergencies.

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