Vippi

Vippi refers to a type of fast, short-term loan, often associated with digital lending platforms. These loans are typically for relatively small amounts and have a short repayment period, often due on the borrower's next payday. The application process for a vippi loan is usually conducted online, requiring minimal documentation and a quick approval time.

The term "vippi" itself is often derived from the Finnish word for "quick." These loans are marketed as a convenient solution for unexpected expenses or temporary cash flow shortages. However, due to their short duration and the high interest rates and fees often associated with them, they can become expensive if not repaid on time.

Risks associated with vippi loans include the potential for a debt spiral if borrowers repeatedly take out new loans to cover old ones. High annual percentage rates (APRs) can make the cost of borrowing substantial. It is generally advised that borrowers carefully consider their ability to repay the loan before taking one out and explore all other borrowing options, such as those with lower interest rates, if possible. Regulators in various countries monitor the vippi loan market to protect consumers from predatory lending practices.