Are Spot Loans More Expensive Than Bank Loans?


Quick Answer

Spot loans are more expensive then a regular bank installment loan with comparable features. Spot loans are a fast way to apply for an installment loan without as much documentation as a bank would request. Bank loans carry less risk, therefore have cheaper interest rates.

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Are Spot Loans More Expensive Than Bank Loans?
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Full Answer

Spot loans are cheaper than payday loans, as spot loans are set up for installment payments, whereas a payday loan is typically repaid in full in one payment. Spot loans do require a job, just as a bank loan does, but a bank requires more documentation. Borrowers are under more scrutiny, leading to a less risky loan with a higher rate of being paid back. Spot loans are designed for people who need quick access to credit despite a higher interest rate.

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