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Since you are here, you’ve likely heard about loans that borrowers can apply for with just an SMS. SMS loans are getting quite popular with a lot of people turning to them because of the convenience they offer. The process of getting one of these is like every other loan process out there. However, the major difference is you can apply for this with an SMS. 

But even though this option screams ease, you still have to know certain things about it before you jump into it. One thing that you need to know when it comes to SMS loans in Norway or SMS lån norge is that some are faster than others. What we mean is that, with some SMS loans, you can apply for them and then your application would be evaluated on the same day. 

Sometimes, if the application is accepted, you can even get the funds sent to your bank account on that same day. This means that applying for a loan and getting it can be possible within 24 hours. Again, knowing this is such a rush and can lead anyone to make some choices that will put a financial strain on them eventually. 

This is why this article has been written to help you navigate the world of on-the-day SMS loans without incurring debts that will leave you in a financial mess. We will do this by first looking at the advantages and drawbacks of this option. We will then look at some of the times when taking an SMS loan is fine and other times when it is not. 

Advantages of SMS Loans 

This loan application option comes with several advantages. It is these advantages that have made it a common practice among people. Below, we will look at some of these advantages to help you better understand the option. 

Application is Easy and Fast 

A text loan is quite easy to apply for and get. You don’t have to visit the bank or go through different often long and tedious processes to access funds. A straightforward text will get you the money you need without you leaving your comfort zone. 

Apart from how easy the application is, it is also quite fast. Most of these loans are on the day. This means that once you send in your application, it’ll be processed on the very same day. In some cases, the money you want to borrow will be sent to your account on that same day. 

Great for Emergencies

This option is great for emergencies because of how easy and fast it is to apply for and get one. If you were to get the money from the bank or any other traditional financial institution, it would take you a while to apply. Not to talk of the wait time to get the money. 

In an emergency, this process can be quite frustrating. Before the money even gets cleared, the emergency may have become a full-blown crisis. But with an on-the-day text loan, you can receive the funds you need in record time and use it to address your emergency. 


Unlike traditional loans, SMS loans are quite accessible. Some lenders that offer this option do not do a deep inquiry when confirming applications. This makes it easier for anyone to access these loans with just their mobile phones. 

Zero Collateral 

One of the many reasons people tend to fear borrowing money from financial institutions is collateral. Collateral is an asset that is used to back up a loan; in case the borrower can’t pay back what they borrow, the lender can claim this asset to get back their money.

You can check here to learn more about collateral. Because of the fear of losing their properties, a lot of people are scared to get a loan backed up with collateral. 

This is another area where an SMS loan is better than a traditional one. With the former, the borrower does not need to provide collateral before they can get the funds they need. However, this does not mean the borrower can go scot-free if they fail to pay back their debt. In cases like this, the lender can decide to sue the borrower in court. 

Disadvantages of SMS Loans 

Borrowing money via text comes with a lot of benefits. But just like every other thing in life, this option also has certain drawbacks. Knowing the drawbacks is key to fully understanding what you will be getting into if you opt for this option. With that said, below are some of the disadvantages of SMS loans. 

Short Repayment Plan 

Because the money you can borrow with this option isn’t a lot, the repayment plan is shorter than other options out there. Depending on the amount borrowed, the repayment period can be anything from 2 months to 6 months or even as long as 2 years.

However, a short repayment plan often means higher monthly payments; for someone looking to get debt-free fast, this may be a plus. But if you have a lot of financial monthly obligations, this will only result in unnecessary financial strain. 

Hidden Charges 

Anyone can offer you an on-the-day SMS loan, and if you aren’t careful, you can end up falling prey to shady lenders. These lenders may try to swindle more money from you by adding some hidden charges to the loan’s contract. It is easy to get distracted by the promise of quick cash and miss the things that you need to look out for. 

Unstable/High-Interest Rates 

Because some of the lenders that offer this option are unregulated, the interest rates for this option may not be quite regulated. Traditional loans’ interest rate is typically calculated using certain metrics. But the same can’t be said for an SMS loan. The lender may attach an interest rate and other hidden charges that may make paying back your debt difficult. 

Application Ease

The ease of borrowing money via this method, while an advantage, also doubles as a disadvantage. How? You may ask. Well, it is quite simple; since the loan is accessible and easy to get, you can become a frequent borrower. 

It can become so bad that you could start borrowing even when you do not have a pressing need for the money. After all, the money you need is just one text away. This could cause someone to become a chronic debtor and cause a lot of financial strain and baggage on the person. 

Should You Take an SMS Loan or Not 

After evaluating the pros and cons of this option, you are likely wondering whether it is the best choice for you or not. Agreed, the cons sort of outweigh the pros. But there are certain situations where this option makes financial and logical sense. 

A good example of when it is okay to take an on-the-day text loan is when you urgently need the money. If you have a pressing financial need with nowhere else to get money, borrowing money via text can help you get out of the situation. Knowing that you should only borrow money when you have a logical need will help you avoid becoming a chronic debtor.

Also, some of the disadvantages of this option can be avoided by simply borrowing from a reliable lender. For example, you won’t have to battle with high-interest rates or hidden charges if you choose a reliable, transparent, and trustworthy lender. So, before you decide on taking an on-the-day loan, ensure you take your time to properly vet the lender you want to borrow from and the loan’s contract. 

There are also times when you need to avoid borrowing money via text. A good example is when you don’t have the financial capacity to pay back what you borrow. Before you borrow money (regardless of the type of loan) ensure you take your time to properly evaluate your financial situation. 

Same day SMS loans are easy to obtain, and this can make you so distracted from what really matters. In this article, we have discussed the pros and cons of this option to help you see if it is a desirable choice for you or not. So, before you send that text, ensure you properly analyze the situation and make the right choice.