When you take out a loan at the bank, you typically take out a loan with a long maturity unless you take out a loan through your overdraft facility. Short-term debt, such as the overdraft facility, is usually referred to as debt that is repaid within 12 months, whereas long-term debt is repaid after periods of more than 12 months. Our own loan form is usually used in the short term, although in principle it is for unlimited use.
Annual percentage rate of interest (APR) is an expression of all the annual costs, including interest, loan interest, current collection fees, foundation costs, etc., which are linked to a loan.
The APR can be a good way to compare different loans, as the APR includes all the costs of the loan, cf. the Credit Agreement Act. Unfortunately, this only applies to maturities that are similar.
About our loan option
As mentioned, our credit is a type of loan, which is primarily calculated for short-term consumption. This means that if, for example, you need to cover an unforeseen expense such as a dental visit or need a little extra money at the end of the month, you can borrow for these needs from us and pay after one or a few months. Although you can actually decide for yourself how long you want to keep the loan amount.
We have chosen to make our loan option as transparent as possible, and therefore you do not pay foundation or collection fees when you choose to borrow from us. In addition, we do not use interest rates – even if you need to keep the money for months.
This means that ÅOP does not represent the real cost of borrowing from us, since ÅOP includes expenses such as interest rates that are not included in our credit agreement.
For example, if you borrow an amount of USD 1,000 or more, you pay us a flat interest rate of 20% for 30 days.
The APR for such a loan will be 816.67%, but this figure does not reflect the real costs, as the APR indicates the cost of the loan per month. years and include, inter alia, interest and other expenses for which we do not charge you.
If you have already tried our offer to borrow with a 50% discount for up to 30 days as a new customer, it will in fact cost you 243.3% *, but since most Danes, depending on their income ratio, get approx.⅓ of their interest costs back in tax, your real annual costs in connection with a one-year loan period with us will amount to approx. 162.2% **.
However, it is important to point out that our credit is used in the short term and that for this purpose it is one of the cheapest alternatives on the market.
In practice, if all these percentages are clear, it means that after your tax deduction, it costs approx. 4 USD and 44 usd *** per. per day when you borrow USD 1,000 from us.
Loans when it’s important to you
If you need an easy and satisfactory credit, you can avoid having to worry about AOP and other cumbersome expenses. We offer you to borrow up to USD 6,000 with a 50% discount for up to 30 days when you are a new customer.
If you need to borrow more money, you as a repeat customer can apply for up to USD 12,000. With our loan calculator you can at once calculate all the loan’s expenses, so that you always have full transparency on the costs.
We see a flexible loan option as an important part of a good customer service, so if you need to borrow for several months, simply pay the monthly interest rate, which we call your interest payment. That way, you can pay the interest until you choose to repay the loan amount.
5 star profile, 5 star service
Our 5-star profile on GoodTrust is your guarantee that you will experience a high quality product and service when you borrow from us.
At the same time, it is proof that our transparent loan form meets or exceeds our customers’ expectations when they borrow from us.
* A loan with us costs 20% for 30 days. “20%” / “30 days” * “365 days / year” = 243.3% / year
** “243.3%” – (“243.3%” * 1/3) = 162.2%
*** “162.2%” / “365 days” * “USD 1,000” = USD 4.44 / day
Credit amount 6000, – Maturity 12 months Total credit costs. 7908, – Mdl. maximum payment 1716, – Total repayment 13908, – ÅOP 816.67% Debt rate / annual fixed: 243.3%. 14 days cancellation right on the credit agreement. Age 20+.