What is a fast loan? And are the institutions that grant them supervised by the Banco de España?
So-called fast loans are small loans that are usually granted immediately, over the internet or the telephone, with almost no documentation required from the applicant, who, in many cases, does not even have the resources or guarantees needed to access the financing offered by financial institutions and is forced to resort to these products.
So much ease when granting these loans (immediacy, few formalities, few economic requirements) comes at a price: they have to be repaid in a very short period of time, at a high interest rate and with high fees that give rise to an APR that is also sky high, a true reflection of the high cost at which you have been granted this loan.
For all these reasons, before arranging a fast loan, it is important to make sure you know how much money you are really going to have available and the instalments you are going to pay and, above all, you need to be aware of the price at which you are borrowing the money.
Lastly, it is important to point out that most of the companies that grant this type of financing are not supervised by the Banco de España, as it is not an activity reserved solely for financial institutions.
If you want to check whether the institution that has made you the offer, or with which you are thinking of arranging a transaction, is subject to supervision by the Banco de España, take a look at our Register of Institutions.