Fast loans vs. installment loans, what is my best option?

If you need help with financing your next vacation taking advantage of the May Bridge, the dentist’s bill or the celebration of a communion and you do not know what kind of loans to go to, we want to help you.

Next, we will explain the differences between two of the most used forms of financing at the moment: quick loans and installment loans, and which one suits you depending on the expense or investment you want to face.

The requirements

Let’s start with the qualities that you must meet if you request a loan in installments to a bank because, if not fulfilled, the option to request a loan in installments is automatically out of the options. We refer to having a payroll, keeping an account open at the bank or cash desk we go to and even a mortgage or some type of insurance. That is to say, traditional banking institutions usually require certain labor stability for the consumer and some type of link with the same in order to be able to access a loan in installments.

While it is true that some banks and savings banks have wanted to deal with new financial online by launching loans without payroll, most require a binding contract, that is, you become a client of the entity.

On the contrary, requesting a quick loan from a microloan entity such as hemibank does not require us to become its clients or have to contract other related products. Our only responsibility to the company is to return the borrowed money at the agreed time.

The amount of money to request and fees

Loans in installments tend to be higher amounts and are also returned in monthly installments, however, the return period is also extended between 4 and 12 months, and it is not uncommon to find minimums established for the money requested, normally of 3,000 euros.

In hemibank, for example, payroll advances are limited to 500 euros to adapt to the type of user and product that it needs: a small amount of money that we need quickly to face an unexpected expense and that we want to return in a very short space of time, usually less than 30 days, when we have already collected our monthly payroll and we are ready to make the return.

In addition, in the microloans, refunds are not usually established through monthly installments, but in a single payment, which avoids many headaches for the applicants.



The immediacy is one of the features that most appreciate those who opt for quick loans. We have already commented that they try to help those who need money quickly and, in general, loans in installments are usually accompanied by a certain bureaucracy and paperwork that entails that we move to a bank office or that we have to send certain documentation by mail, in addition to having to open an account in the bank or domicile our payroll.

In the case of companies such as hemibank, simply enter your website from your mobile phone and make the request you want in a matter of minutes by completing a simple form. Hemibank will deposit the money you need in your bank account almost immediately.

Opening fee and interest

2.5% on the amount contracted as opening commission, 1% as cancellation fee, interest that reaches 9%… These are some of the figures that we encounter when we read the contract subscribed to a loan in installments in a traditional bank. Compared to installment loans, in the mini-credits the cost is clearly expressed as a difference between the amount arranged and the expected return. As it is a short-term product, the resulting APR is very high (see our section, What are the TIN and the APR?) To understand this issue).

However, in a installment loan the total difference between the received and the returned is probably greater. In short, these are different products, and therefore a microloan must be understood as a financing or advance to cover a specific need for treasury.

Now that you have seen clearly the differences between a loan in installments and a quick loan, do you know which is best for you to face your next expenses?

Apply now for your first Advance Free!


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