Every person in life is in a situation where sudden expenses are suddenly incurred, but there is no money to pay for them. You may need a car repair, an unexpected doctor visit, an accident that has caused unexpected expenses, or something else. In such cases, different solutions are offered and one of these solutions is a LN Loan. Fast loans , consumer credit are already quite well known and well known, but recently both banks and private creditors started offering their customers a service like a LN Loan . In general, it can be said that the LN Loan is very similar to other types of loan, and also includes the functions provided by the credit card, but there are some very important details that every borrower should know. A LN Loan is a loan in which the customer can determine what the LN Loan limit will be , as well as the length of time that the loan can be used.
In addition, the borrower should not specify the purposes for which these additional funds will be used. In the case of a LN Loan, a person can use as much as necessary from the LN Loan limit – if not all the money is needed, then it is not obligatory to use it. Likewise, the user of the LN Loan can use the money received when it is really needed – it should not be done immediately after the money has been credited to the account. Of course, money in the amount of the LN Loan can only be used within the set term. Unlike an overdraft LN Loan, the risk that a person can get into high debt is reduced because the borrower himself determines how long he will use the LN Loan and how much he will exceed his funds.
The customer must also repay
Of course, when you start using LN Loan funds, the customer must also repay them. The amount of LN Loan used per month must be repaid – it can be done in full and only by paying a minimum amount. The customer can then borrow money from the LN Loan again. One of the benefits of a LN Loan is that the customer can repay the borrowed amount to his creditor more quickly. And most importantly – saving on interest. If other types of credit, such as quick loans, despite the fact that the money is repaid more quickly, you have to pay a full rate of interest, then, using the LN Loan, the customer pays interest only on the money that has actually been used. But the biggest advantage of a LN Loan is that if the customer has not used the loan, there is no need to make any payments. As a result, the LN Loan acts as collateral – if additional funds are needed, they can be used.
But if they are not needed, they will not have to pay for it either, because the bank or the private creditor has not lost these funds. Although such cases are preceded by quick loans that provide the borrower with money at times of urgency, the LN Loan is a better and more profitable option. If a person has a LN Loan available, then this amount is in the bank account. This means that it can be used at any time of the day . However, it is not always possible to get quick loans because there is now a limited time to get the money. Likewise, quick loans are often not granted on holidays , and on holiday, the period of time for obtaining credit is shorter.
The LN Loan can be used for both individuals and businesses.
Private individuals can use the LN Loan as a guarantee and security for the future, that there will be no shortage of money. It can be used at times when salary is spent, but it is still a few days to new monthly income. For companies, these are the funds that can be used at a time when lower profits are expected. For example, for road construction companies, the greatest profits are in the summer season, but in the winter, they also need funds. Consequently, a LN Loan can help such seasonal companies not go bankrupt during periods of falling income.
A LN Loan is also a more advantageous loan service in terms of interest rates
Unlike fast loans, which are famous for their high cost (unless the first loan is used free of charge), the LN Loan interest is lower, and for the client it means less money over services provided by the creditor. Of course, before that, the chosen credit institution – the bank or the private creditors – should be interested in the interest rate, because it is not the same everywhere. Before applying for a LN Loan at a first credit institution that is closer to home or is the first to advertise on the internet, it is imperative to have a mutual comparison of creditors. This step will help any prospective user of the LN Loan find the most profitable option. The comparison is also due to the fact that the offered LN Loans have different minimum and maximum amounts. The same applies to deadlines – not all credit institutions offer LN Loans for more than a year. As a result, the customer always has to do a thorough research of the credit provider first.
In order to obtain a LN Loan
The borrower (individual or company) must also meet the criteria set by the creditor. One of the most important aspects that will definitely be tested by both banks and private creditors is the customer’s solvency. No one will grant a LN Loan if a person does not have a regular and stable income, otherwise the creditor can immediately write off the money at a loss. Therefore, the potential user of the LN Loan should expect that the creditor may request a statement from the workplace or the SRS (the State Revenue Service). When choosing a creditor, the customer must expect that there may be a minimum amount of wage that a LN Loan must have to be able to receive. For example, in order to receive a LN Loan from Swedbank , the customer must have a regular income of 500 EUR after tax. However, these rules may also be lower for other lenders. In any case, one is clearly aware that one must be a source of income for the LN Loan to be granted.
An equally important aspect that the creditor will certainly pay attention to is the human credit history . Credit history shows all past and existing credit liabilities. You need a positive credit history to get a LN Loan. This means that if there has been a credit obligation in the past (fast credit, consumer credit, etc.), there can be no debts in these credit liabilities, payments should not be on a regular basis. In the past, it was easier to get credits because it was impossible to get complete information about the customer’s credit obligations, but now all the previous and existing liabilities are visible, which means that it is impossible to hide from the eyes of the lenders. If a prospective LN Loan user has recently entered the debtor list, there is a high probability that the LN Loan application will be refused.
The existence of a debt in the case of a credit obligation means that the creditor may incur losses as the customer may not make payments. Hence, the risk is higher and the LN Loan is simply not given to avoid potential losses. This means that all credit obligations must always be treated very responsibly, including against LN Loan payments. Debts and regular delays are recorded and thus affect the ability to receive any kind of cash loan in the future. When a person wants a LN Loan, his credit history must be positive, and there must be no outstanding debt.
Limitation of LN Loan
There are other limitations for borrowers as well. One of them is age. To be eligible for a LN Loan, be sure to be at least an adult. However, each creditor may have different criteria in this respect – maybe someone grants a LN Loan only when the borrower has reached at least 20 years of age. Also, the restrictions apply to pensioners. Some credit institutions issue LN Loans to customers under the age of 70, but there may also be creditors who have a higher age limit, such as 65. Therefore, this is another aspect that must definitely be compared among all LN Loan providers.
The LN Loan is granted only to citizens of the Republic of Latvia or to those who have a permanent residence permit. When submitting a LN Loan application, it should be assumed that personal identification documents may be required. Also, the customer needs an email address, a bank account and an active phone number. It is possible to apply for a LN Loan not only in the bank’s branches, but also in the Internet bank or on the websites of private creditors.
LN Loan against consumer credit?
If we compare the LN Loan with consumer credit, then these two types of loans are quite similar to both their interest rates and repayment terms, and even the loan amounts that can be obtained. But of course there are also some differences. The biggest difference is that the consumer loan has to determine the total amount of the loan at the beginning of the loan, but you can borrow the LN Loan in installments until you reach the maximum limit. And this borrowings are very beneficial because the customer has to pay interest only on the amount of money actually received. This means that if you apply for 1500 Euro but only receive 200 Euro , the interest will be paid not for all 1500 Euros but 200 Euros, which in turn means a lot of savings! Basically, a LN Loan is more profitable if you don’t really know what your expenses will be, but if you have a specific goal with the amount of money you need to borrow then the consumer credit may be more profitable.
LN Loan against quick loans?
If we compare the line of credit with quick loans, it is immediately apparent that both of these services are quite different and the only thing they have in common is that they are mostly issued by non-bank creditors. The LN Loan has lower interest rates, longer repayment terms, a higher borrowing amount, and generally much better terms. But quick loans are basically possible quickly and it is also the main advantage of these loans. That’s why I would definitely choose this LN Loan, because a little while you can get a much better service .
Why are such services being created?
The LN Loan and credit limit have grown significantly over recent months and years, and this is because non-bank creditors are slowly trying to move towards longer-term lending and shifting from short-term loans to something more similar to consumer credit. But to compete with banks and provide better services to their customers, these companies are constantly trying to think new ideas. And the LN Loan and the credit limit are both such services that have come from this need to please customers and overtake the big banks in Latvia to get more profit. The LN Loan, for example, allows people to use Internet credits to the extent they need, not to borrow more than necessary and to increase this loan by up to 10 times the limit set by the credit institution. And because there is no need to go to the bank or take a new credit card, people can benefit from such a service, and not even the bank’s creditors are slowly moving in these directions. Longer-term credit commitments are a much safer business than short-term loans, and while the profit margins are not so high, such loans earn long-term profits and are not as fast as in the case of quick loans and SMS credits.