Vippaus

Vippaus is a Finnish slang term referring to a small, short-term loan, often associated with mobile payments. The term itself is derived from "vippi," which can mean a wink or a quick gesture, implying the speed and ease with which these loans can be obtained. Vippaus loans are typically for relatively small amounts, ranging from a few euros to a few hundred euros, and are designed to be repaid quickly, often within a month or two.

These loans became popular with the rise of mobile technology, allowing individuals to apply for and receive funds directly through their mobile phones. This convenience, however, comes with a significant drawback: high interest rates and fees. The rapid repayment period and the perceived ease of access can lead borrowers into a cycle of debt if not managed carefully.

The market for vippaus loans is regulated in Finland, with laws in place to protect consumers and prevent predatory lending practices. These regulations often include limits on the maximum interest rates and fees that can be charged. Despite these measures, it is widely recognized that vippaus loans are a more expensive form of borrowing compared to traditional bank loans or credit cards. Consumers are generally advised to consider vippaus loans only as a last resort and to carefully assess their ability to repay the loan with all associated costs before proceeding. The term is primarily used in informal Finnish conversation.