It is true that consumers usually associate the word loan with large sums that finance a property or a vehicle.
But for some years, there are also loan solutions for borrowers who have a financial bottleneck because of smaller sums, which they can not handle on their own.
The classic example: The account is empty to the last penny and just now is an urgent car repair, which costs a three-digit amount to. In this case, a mini loan helps immediately (usually up to 1000 euros) from the financial misery. And best of all, borrowers do not need to make a long-term commitment because they can conveniently settle the loan amount with the next salary.
Mini loan at once – the Internet makes it possible
In recent years, many online financial services providers have specialized in lending small amounts, so that consumers have no problem finding a suitable provider when they need to bridge a financial bottleneck. Many financial service providers even offer the option of being able to take out a mini loan immediately. If the borrower has all the necessary documents at hand and identifies himself by means of a video identification procedure, he can also apply for the mini loan in the form of an express loan. In this case, the processing of the loan application takes only a few minutes and the borrower has credited the loan amount to his account within 24 hours.
Who can claim the instant mini loan?
However, not every consumer can avail himself of the offer to apply immediately for a mini loan. The reason for this are the hurdles of the providers. For example, for most financial services providers, the borrower must be at least 18 years old to apply for a loan – some providers even lend money to clients as young as 21 years of age. Furthermore, a regulated income and a sufficient creditworthiness are required.
How much does a mini loan with an instant loan really cost?
At first glance, the small loan seems to be quite expensive, but require the financial service providers but an annual percentage rate of between 8.95 and 14.9 percent. However, these seemingly high costs are put into perspective again given the short duration .
Because these loans are usually issued with a term of 30 days . However, some financial services providers also have the option of repaying the borrowed money in two or three monthly installments – but this offer is usually only available to existing customers who have already taken out one or more short-term loans and repaid them reliably.
Apply for a mini loan
Getting a loan within 24 hours does not always require going to the bank. The bank is also a bad point of contact, because processing, even with a small loan, can take several days.
An alternative is therefore the mini loan, which can be applied for online. There are more and more reputable providers offering a mini loan for a flat rate. Even if the providers take a higher risk with it, this is still profitable for you, because you also save a lot of costs.
As a rule, a sum of money in the low three-digit range can be applied for with these providers. While not enough to buy a new car, this mini-credit is not suitable for financing a home, but it does help offset short-term financial shortages.
Use the credit line
Persons who have their own checking account and who have regular cash receipts can usually apply for an overdraft limit. Depending on the amount of regular income and the asset situation can be granted by the bank, that the account may even slip into the “minus”.
The advantage of the credit line is that it does not require any bureaucracy. The money is simply deducted from the checking account and if there is no more money, the disposition credit is automatically used.
However, if the current account does not have the option to grant an overdraft limit, this can be requested from the respective bank. However, it must be noted that a regular cash receipt is necessary. Likewise, the processing of the application takes more than 24 hours. So in this case, he can not immediately provide for a financial relief, but may be useful for the future.
Also note the very high interest rates. Depending on the bank, these can amount to up to 15% and are therefore significantly more expensive than ordinary loans. This is related to the fact that for the disposition credit no credit check is performed, but this is approved without any examination.
Use an instant loan
Not only the mini loan is a very special special form of the loan, but also the instant loan can be applied for online. The mini loan and the instant loan are relatively similar, but there are still crucial differences.
With the instant loan also larger sums can be requested. While the mini-loan makes sense especially for three-digit amounts, amounts of up to 3,000 euros can be applied for immediately with the instant loan. Even higher sums are quite possible, but here are higher hurdles to consider.
Unlike the mini-loan, proof of income and financial circumstances must be provided in the instant loan. This usually involves requiring account sales and other records of assets. Thus, the instant loan is more like a classic loan application with a credit check.
Nonetheless, in the case of an instant loan, the providers promise swift processing and credit check after receipt of the required documents. Of course, this also means that the instant loan can be rejected if the credit rating speaks against lending. In particularly automated cases, however, a basic decision can be made within a few minutes. For this purpose, the information provided is automatically evaluated by the bank.