It doesn’t take a catastrophe to run out of money or experience a temporary cash crunch. Financial emergencies, loss of employment, and switching jobs often cause some liquidity issues. Whenever there is some imbalance between your financial outflows and the amount of money going into your wallet, you are bound to find yourself in some financial crisis.


When facing an urgent financial need, the first thing in most people’s minds is to find a way to get money quickly. As much as you might be looking for money, you should also be willing to make a smart borrowing decision. What is a smart loan? Ideally, a smart borrowing decision is one made when your back is pressed against the wall, and you have nowhere to turn to. Also, it can be when it is profitable to borrow: the proceeds from the loan are more than the interest paid.


So the next time you will be looking for a smart way of borrowing money in Sweden, here are some options worth looking at.


  1. SMS Loans

The Swedish financial market has been one of the most regulated in the world. In the wake of economic reforms, the number of consumer loans has improved drastically. If securing a payday loan is a challenge, then you need to consider applying for SMS loans. As the name suggests, SMS loans only require the borrower to send a text message requesting for a loan via a mobile phone. SMS loans options compared at HittaSMSLån show that borrowers can be approved for the loan in as little as 15 minutes. This makes them attractive for people in some financial crisis or when facing a desperate need for cash.


The easy access to SMS loans makes them quite attractive to a mobile phone oriented demographic. The convenience factor makes them quite appealing to millennials with close to 40% of SMS loan borrowers in Sweden being between the ages of 18 – 25.


  1. Unsecured Loans

Swedes are known for being faithful at paying loans. In light of this, most lenders are always willing to extend unsecured loans due to the low-risk nature of the Swedish market. Unsecured loans allow you to borrow money without using an asset, such as a car or home, as collateral. Borrowers can get a loan of any amount between SEK 5000 and SEK 350,000 and an effective interest rate of anything between 5-15% depending on the borrower’s creditworthiness.


Unsecured loans offer a quick-fix solution for an emergency situation. The ease of getting qualified can be a potential downside to unsecured line credit as it can get addictive. Also, individuals with limited incomes or poor credit always have trouble getting qualified for this type of loan.


  1. Second Mortgages

Also known as a home equity line of credit, this type of loan is known for its attractive interest rates. Ideally, second mortgages resemble the original mortgage in all respects: you are allowed to borrow a fixed amount at a fixed interest rate. The monthly payments for home equities are often harmonized.


Most borrowers prefer second mortgages with a lump-sum financial need. You also need to evaluate the possibility of borrowing all the money at once or borrow in bits. Whichever option you choose, it is imperative to read the fine print and ensure you fully understand the terms and conditions of the loan.


In a nutshell, there is no one-size-fits-all solution when it comes to borrowing money. Ideally, some smart loans are known for lucrative interest rates, whereas others are preferred for their fast processing times. If you are planning to borrow, any of these three options can offer lower costs and quicker payback.